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Sustainability Report PwC Hungary 1 July 2017 – 30 June 2018

Sustainability Report 2018 - PwC...Sustainability Report is a reporting tool, and as such, covers all identified topics. This report provides an overview of the efforts we made in

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Sustainability ReportPwC Hungary 1 July 2017 ndash 30 June 2018

2

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

ContentsCEOrsquos letter 3

1 Responsible business 4

11 The means to sustainability our strategy and values 5 Prioritising topics 5 Our values 6 Business strategy responsible and profitablegrowth 7

12 What we do to be sustainable ndash our tools 8 Our sustainability report ndashareflectionofouractivity 8 Definingthecontentsofthereport 8 Responsible marketing amp communications 8

13 Key to sustainability our people 9 Our people 9 Diversity and inclusion 11 EuropeanDiversityCharter 11 HeForShe 11 WEX Day 12 Ourpublicationsonthetopicofdiversity 12 Benefits 13 Cafeteriaplan 13 HealthDay 13 Sporting opportunities promotingahealthylifestyle 13 HealthDay 14 LunchampLearnndashWelearnfromeachother 14 Outlook ndash inspiring people interestingstories 14 Corporate environment 15 Employer-employeerelationship 15 Annual Global People Survey 15 Workday and recruitment 16

2 Responsible partnership 17

21 Corporate responsibility strategy 18 CR management 19 Standard measurement system across theglobalPwCnetwork 19 Our community initiatives 20 Volunteer Week 20 Step Counting and Cycle to Work 21 Itrsquosaboutothers 21 Blood donation 21 Offeringfreeaccesstoourvenues 21 1 campaign 21 Training and education 22 Our pro bono activities 22 Presentationsandworkshops 23 Civil Mentoring Programme 23 PeacutenzSztaacuter 24

22 Relations with stakeholders 25 Ourstakeholdersmappingprioritising and dialogue 26 Employees 27 Next generation potential employees 27 Our clients 27 Client acceptance and retention 27 Client Feedback Survey 28 PwCrsquos Hungarian CEO Survey 29 Tax Dialogue 29 Keyplayersinoursupplychain 30 Cooperating trade organisations 30

23 Awards and recognition 31 BusinessCouncilforSustainableDevelopment in Hungary (BCSDH) 31

3 Responsible operation 32

31 Innovative solutions in our daily operations 33 Smartcity 34 SmartTaxSolutions 34 RPA 34

32 Environmental and operational awareness 35 Modernenvironmentallyfriendlyoffices 35 Our operation by numbers 36 Paper use 36 Dailytravelwithelectriccars 37 Road transport in numbers 37 Air transport in numbers 37 Greenofficetaskforce 38

33 Our presence in Hungary 39 Ourservices 40 Legalentitiesownershipstructure 41 Governance 42 PwCHungaryrsquosorganisationalstructure 42

34 Our global network ndash PwC International 43

35 Economic indicators 44

36 Promoting lasting and sustainable economic growth ndash Our economic role 45 Publications and surveys 45

36 Quality and risk management 47

37 Human rights 47

38 Ethical requirements 48

39 About our sustainability report 49 List of indicators 50

3

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

CEOrsquos letter

ThereisonewordthatdefinesformemyroleandapproachtobeingCEOandthechallengesfaithcommitmentandopennessrequiredtomeetthemThatwordisthefutureThefuturehasneverlookedasexcitingandunpredictableasitdoesnowTechnologicalchangeandinnovationaretransformingourlivesatanunprecedentedpaceWecannotseeclearlyhowthiswillproceedWhatiscertainisthatgovernmentsscientistsandglobalcorporationswillhavetorisetothechallengeandsowillsmallbusinessesandeverybodyelse

ThroughoutthisjourneyIbelievePwCHungaryrsquosmostdecisiverolewillbeinknowledgesharingwhichishowwecreatevalueandwhichshouldservenotonlytheneedsoftheprivatesectorbutofsocietyatlargeToaccomplishthatgoalwehavelaunchedvariouscommunityinitiativesandtrainingprogrammes including our Civil Mentoring Programme ldquoItrsquosaboutothersrdquoandourannualVolunteerDayWeaimtoexpandtheseinitiativesinthecomingyear

Since2012wehavepresentedthepreviousyearrsquosresultsandkey(financialaswellasnon-financial)indicatorsourinitiatives and responses to societal problems in our annual SustainabilityReportThepurposeofourreportistoshareourvisionofthefutureandwhatwedointhepresenttorealiseitwithourclientscurrentandprospectiveemployeessupplierspublicandregulatorybodies

Tamaacutes Lőcsei

Country Managing Partner PwC Hungary

4

Responsible business1

5

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

11 The means to sustainability our strategy and values

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices Withofficesin158countriesandmorethan250000peopleweareamongtheleadingprofessionalservicesnetworksintheworldWehelporganisationsandindividualscreatethevaluetheyrsquorelookingforbydeliveringqualityinassurancetaxadvisoryandtechnologyservicesInouroperationwecombinedecadesofaccumulatedexperienceandknowledgewithcutting-edgetechnologiesWesummarisebelowthetopicsthatconstitutethebasisforhowwedobusiness

Prioritising topicsWhilethetopicsareprioritisedinlinewithourstrategytheSustainabilityReportisareportingtoolandassuchcoversallidentifiedtopics

Thisreportprovidesanoverviewoftheeffortswemadeinthepastfinancialyeartofindvaluablesolutionsfortodayrsquoschallengesandcomplexbusinessproblems

Diversity amp Inclusion

Sustainability in our supply chain

Professional assistance to civil society

Community engagement

Reaching the next generation

Engaging our people

Professional self-fullment of our people

Innovative business solutions

Client satisfaction

Talent management

Wellbeing of our people

Our priorities

6

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our values

AlthoughwerepresentdifferentcultureswithinournetworkandhavedifferentbackgroundssomethingweallhaveincommonisvaluecreationThisdefinesourconducthowwemakeourdecisionsandengagewitheachotherandourclients

Act with integritybull Speak up for what is right especially when

it feels difcult

bull Expect and deliver the highest quality outcomes

bull Make decisions and act as if our personal reputations were at stake

Make a difference

bull Stay informed and ask questions about the future of the world we live in

bull Create impact with our colleagues our clients and society through our actions

bull Respond with agility to the ever-changing environment in which we operate

Work together

bull Collaborate and share relationships ideas and knowledge beyond boundaries

bull Seek and integrate a diverse range of perspectives people and ideas

bull Give and ask for feedback to improve ourselves and others

Reimagine the possiblebull We continuously develop new digitally

adequate solutions

bull We are to understand everybody who we get in contact with

Care

bull Make the effort to understand every individual and what matters to them

bull Recognise the value that each person contributes

bull Support others to grow and work in the ways that bring out their best

Our values

7

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

We build trust in society and to solve important problems with sustainable operation

Financial capitalEquity from partners

third-party debt

Human capitalGraduates

school leaversexperienced hires

Trusted relationshipsBrand and reputation

stakeholder relationships licence to operate

Intellectual capitalTechnical and technological expertise proprietary tools

amp methodologies

Natural resourcesTravel energysupplies for offices

Physical assetsOffices IT equipment

Business inputs Our performanceBusiness strategySustainability strategy

Our impact onsociety

Our purposeTo build trust in society and solve

important problems

Cre

atin

g ex

ceptional insight amp know

-howU

nder

stan

di

ng client needs amp opportunities

Att

ract

ing

and developing diverse talent

Harne

ssin

g te

chno

logy amp delivering distinctive solutions

Four strategic processes ndash Vision 2020

8

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety

Defining the contents of the report Purpose and scope

Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders

Defining the topics

ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable

Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback

Responsible marketing amp communicationsThe PwC brand

OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business

SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS

Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades

When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report

12 What we do to be sustainable ndash our tools

DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents

OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases

Media appearances in the 2017 financial year

Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)

ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata

9

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

13 Key to sustainability our people

Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves

OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear

PwC employees

776Full-time (8-hour)

employment

694Part-time employment

85

Our people

PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds

Forms of employment

Interns

81

10

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Turnover according to age and gender

Position Gender Age FY 2016 FY 2017 FY 2018

PartnerFemale

30-49 5 5 350-69 0 0 1

Male30-49 12 10 1150-69 4 4 6

Staff

FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11

MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10

InternsFemale Under 30 40 15 29

Male Under 30 27 4 38

Total 673 661 776

Staff numbers by position gender and age

New entrants Leavers

FY 2018FY 2017 FY 2018FY 2017

Female

Male

170

105

40

52

2

1

205

127

48

89

5

18

143

121

126

113

118

79

94

79

Under 30

Between30 and 50

Over50

In FY 2018

senior managers joined PwCrsquos leadership

5In FY 2018

5In total

5

colleagues had the opportunity to go on secondment

9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year

11

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Diversity and inclusion

AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface

European Diversity Charter

InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices

Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo

Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary

Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women

Nick Koacutes CEE CEO

HeForShe

WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem

12

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our publications on the topic of diversity

PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications

WEX Day

ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities

13

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Benefits Sporting opportunities promoting a healthy lifestyle

SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)

WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions

OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions

Guaranteed pay

BASE

Variable pay

Company bonus andor sales incentives

Financial incentives

New business bonus referral bonus project bonus

Other incentivesInstant recognition card loyalty recognition success story award

for teams

BenefitsCafeteria insurance promoting health paid company holidays

learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day

Cafeteria plan

WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits

In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers

14

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Outlook ndash inspiring people interesting stories

WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist

I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons

making them more aware of societal issues And all this is done

efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo

Aacutedaacutem Dallos MCBD

Health Day

OurJanuaryHealthDaycentredonthreetopics

bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound

bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers

bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer

Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

2

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

ContentsCEOrsquos letter 3

1 Responsible business 4

11 The means to sustainability our strategy and values 5 Prioritising topics 5 Our values 6 Business strategy responsible and profitablegrowth 7

12 What we do to be sustainable ndash our tools 8 Our sustainability report ndashareflectionofouractivity 8 Definingthecontentsofthereport 8 Responsible marketing amp communications 8

13 Key to sustainability our people 9 Our people 9 Diversity and inclusion 11 EuropeanDiversityCharter 11 HeForShe 11 WEX Day 12 Ourpublicationsonthetopicofdiversity 12 Benefits 13 Cafeteriaplan 13 HealthDay 13 Sporting opportunities promotingahealthylifestyle 13 HealthDay 14 LunchampLearnndashWelearnfromeachother 14 Outlook ndash inspiring people interestingstories 14 Corporate environment 15 Employer-employeerelationship 15 Annual Global People Survey 15 Workday and recruitment 16

2 Responsible partnership 17

21 Corporate responsibility strategy 18 CR management 19 Standard measurement system across theglobalPwCnetwork 19 Our community initiatives 20 Volunteer Week 20 Step Counting and Cycle to Work 21 Itrsquosaboutothers 21 Blood donation 21 Offeringfreeaccesstoourvenues 21 1 campaign 21 Training and education 22 Our pro bono activities 22 Presentationsandworkshops 23 Civil Mentoring Programme 23 PeacutenzSztaacuter 24

22 Relations with stakeholders 25 Ourstakeholdersmappingprioritising and dialogue 26 Employees 27 Next generation potential employees 27 Our clients 27 Client acceptance and retention 27 Client Feedback Survey 28 PwCrsquos Hungarian CEO Survey 29 Tax Dialogue 29 Keyplayersinoursupplychain 30 Cooperating trade organisations 30

23 Awards and recognition 31 BusinessCouncilforSustainableDevelopment in Hungary (BCSDH) 31

3 Responsible operation 32

31 Innovative solutions in our daily operations 33 Smartcity 34 SmartTaxSolutions 34 RPA 34

32 Environmental and operational awareness 35 Modernenvironmentallyfriendlyoffices 35 Our operation by numbers 36 Paper use 36 Dailytravelwithelectriccars 37 Road transport in numbers 37 Air transport in numbers 37 Greenofficetaskforce 38

33 Our presence in Hungary 39 Ourservices 40 Legalentitiesownershipstructure 41 Governance 42 PwCHungaryrsquosorganisationalstructure 42

34 Our global network ndash PwC International 43

35 Economic indicators 44

36 Promoting lasting and sustainable economic growth ndash Our economic role 45 Publications and surveys 45

36 Quality and risk management 47

37 Human rights 47

38 Ethical requirements 48

39 About our sustainability report 49 List of indicators 50

3

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

CEOrsquos letter

ThereisonewordthatdefinesformemyroleandapproachtobeingCEOandthechallengesfaithcommitmentandopennessrequiredtomeetthemThatwordisthefutureThefuturehasneverlookedasexcitingandunpredictableasitdoesnowTechnologicalchangeandinnovationaretransformingourlivesatanunprecedentedpaceWecannotseeclearlyhowthiswillproceedWhatiscertainisthatgovernmentsscientistsandglobalcorporationswillhavetorisetothechallengeandsowillsmallbusinessesandeverybodyelse

ThroughoutthisjourneyIbelievePwCHungaryrsquosmostdecisiverolewillbeinknowledgesharingwhichishowwecreatevalueandwhichshouldservenotonlytheneedsoftheprivatesectorbutofsocietyatlargeToaccomplishthatgoalwehavelaunchedvariouscommunityinitiativesandtrainingprogrammes including our Civil Mentoring Programme ldquoItrsquosaboutothersrdquoandourannualVolunteerDayWeaimtoexpandtheseinitiativesinthecomingyear

Since2012wehavepresentedthepreviousyearrsquosresultsandkey(financialaswellasnon-financial)indicatorsourinitiatives and responses to societal problems in our annual SustainabilityReportThepurposeofourreportistoshareourvisionofthefutureandwhatwedointhepresenttorealiseitwithourclientscurrentandprospectiveemployeessupplierspublicandregulatorybodies

Tamaacutes Lőcsei

Country Managing Partner PwC Hungary

4

Responsible business1

5

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

11 The means to sustainability our strategy and values

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices Withofficesin158countriesandmorethan250000peopleweareamongtheleadingprofessionalservicesnetworksintheworldWehelporganisationsandindividualscreatethevaluetheyrsquorelookingforbydeliveringqualityinassurancetaxadvisoryandtechnologyservicesInouroperationwecombinedecadesofaccumulatedexperienceandknowledgewithcutting-edgetechnologiesWesummarisebelowthetopicsthatconstitutethebasisforhowwedobusiness

Prioritising topicsWhilethetopicsareprioritisedinlinewithourstrategytheSustainabilityReportisareportingtoolandassuchcoversallidentifiedtopics

Thisreportprovidesanoverviewoftheeffortswemadeinthepastfinancialyeartofindvaluablesolutionsfortodayrsquoschallengesandcomplexbusinessproblems

Diversity amp Inclusion

Sustainability in our supply chain

Professional assistance to civil society

Community engagement

Reaching the next generation

Engaging our people

Professional self-fullment of our people

Innovative business solutions

Client satisfaction

Talent management

Wellbeing of our people

Our priorities

6

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our values

AlthoughwerepresentdifferentcultureswithinournetworkandhavedifferentbackgroundssomethingweallhaveincommonisvaluecreationThisdefinesourconducthowwemakeourdecisionsandengagewitheachotherandourclients

Act with integritybull Speak up for what is right especially when

it feels difcult

bull Expect and deliver the highest quality outcomes

bull Make decisions and act as if our personal reputations were at stake

Make a difference

bull Stay informed and ask questions about the future of the world we live in

bull Create impact with our colleagues our clients and society through our actions

bull Respond with agility to the ever-changing environment in which we operate

Work together

bull Collaborate and share relationships ideas and knowledge beyond boundaries

bull Seek and integrate a diverse range of perspectives people and ideas

bull Give and ask for feedback to improve ourselves and others

Reimagine the possiblebull We continuously develop new digitally

adequate solutions

bull We are to understand everybody who we get in contact with

Care

bull Make the effort to understand every individual and what matters to them

bull Recognise the value that each person contributes

bull Support others to grow and work in the ways that bring out their best

Our values

7

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

We build trust in society and to solve important problems with sustainable operation

Financial capitalEquity from partners

third-party debt

Human capitalGraduates

school leaversexperienced hires

Trusted relationshipsBrand and reputation

stakeholder relationships licence to operate

Intellectual capitalTechnical and technological expertise proprietary tools

amp methodologies

Natural resourcesTravel energysupplies for offices

Physical assetsOffices IT equipment

Business inputs Our performanceBusiness strategySustainability strategy

Our impact onsociety

Our purposeTo build trust in society and solve

important problems

Cre

atin

g ex

ceptional insight amp know

-howU

nder

stan

di

ng client needs amp opportunities

Att

ract

ing

and developing diverse talent

Harne

ssin

g te

chno

logy amp delivering distinctive solutions

Four strategic processes ndash Vision 2020

8

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety

Defining the contents of the report Purpose and scope

Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders

Defining the topics

ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable

Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback

Responsible marketing amp communicationsThe PwC brand

OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business

SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS

Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades

When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report

12 What we do to be sustainable ndash our tools

DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents

OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases

Media appearances in the 2017 financial year

Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)

ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata

9

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

13 Key to sustainability our people

Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves

OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear

PwC employees

776Full-time (8-hour)

employment

694Part-time employment

85

Our people

PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds

Forms of employment

Interns

81

10

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Turnover according to age and gender

Position Gender Age FY 2016 FY 2017 FY 2018

PartnerFemale

30-49 5 5 350-69 0 0 1

Male30-49 12 10 1150-69 4 4 6

Staff

FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11

MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10

InternsFemale Under 30 40 15 29

Male Under 30 27 4 38

Total 673 661 776

Staff numbers by position gender and age

New entrants Leavers

FY 2018FY 2017 FY 2018FY 2017

Female

Male

170

105

40

52

2

1

205

127

48

89

5

18

143

121

126

113

118

79

94

79

Under 30

Between30 and 50

Over50

In FY 2018

senior managers joined PwCrsquos leadership

5In FY 2018

5In total

5

colleagues had the opportunity to go on secondment

9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year

11

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Diversity and inclusion

AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface

European Diversity Charter

InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices

Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo

Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary

Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women

Nick Koacutes CEE CEO

HeForShe

WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem

12

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our publications on the topic of diversity

PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications

WEX Day

ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities

13

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Benefits Sporting opportunities promoting a healthy lifestyle

SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)

WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions

OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions

Guaranteed pay

BASE

Variable pay

Company bonus andor sales incentives

Financial incentives

New business bonus referral bonus project bonus

Other incentivesInstant recognition card loyalty recognition success story award

for teams

BenefitsCafeteria insurance promoting health paid company holidays

learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day

Cafeteria plan

WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits

In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers

14

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Outlook ndash inspiring people interesting stories

WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist

I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons

making them more aware of societal issues And all this is done

efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo

Aacutedaacutem Dallos MCBD

Health Day

OurJanuaryHealthDaycentredonthreetopics

bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound

bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers

bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer

Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

3

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

CEOrsquos letter

ThereisonewordthatdefinesformemyroleandapproachtobeingCEOandthechallengesfaithcommitmentandopennessrequiredtomeetthemThatwordisthefutureThefuturehasneverlookedasexcitingandunpredictableasitdoesnowTechnologicalchangeandinnovationaretransformingourlivesatanunprecedentedpaceWecannotseeclearlyhowthiswillproceedWhatiscertainisthatgovernmentsscientistsandglobalcorporationswillhavetorisetothechallengeandsowillsmallbusinessesandeverybodyelse

ThroughoutthisjourneyIbelievePwCHungaryrsquosmostdecisiverolewillbeinknowledgesharingwhichishowwecreatevalueandwhichshouldservenotonlytheneedsoftheprivatesectorbutofsocietyatlargeToaccomplishthatgoalwehavelaunchedvariouscommunityinitiativesandtrainingprogrammes including our Civil Mentoring Programme ldquoItrsquosaboutothersrdquoandourannualVolunteerDayWeaimtoexpandtheseinitiativesinthecomingyear

Since2012wehavepresentedthepreviousyearrsquosresultsandkey(financialaswellasnon-financial)indicatorsourinitiatives and responses to societal problems in our annual SustainabilityReportThepurposeofourreportistoshareourvisionofthefutureandwhatwedointhepresenttorealiseitwithourclientscurrentandprospectiveemployeessupplierspublicandregulatorybodies

Tamaacutes Lőcsei

Country Managing Partner PwC Hungary

4

Responsible business1

5

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

11 The means to sustainability our strategy and values

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices Withofficesin158countriesandmorethan250000peopleweareamongtheleadingprofessionalservicesnetworksintheworldWehelporganisationsandindividualscreatethevaluetheyrsquorelookingforbydeliveringqualityinassurancetaxadvisoryandtechnologyservicesInouroperationwecombinedecadesofaccumulatedexperienceandknowledgewithcutting-edgetechnologiesWesummarisebelowthetopicsthatconstitutethebasisforhowwedobusiness

Prioritising topicsWhilethetopicsareprioritisedinlinewithourstrategytheSustainabilityReportisareportingtoolandassuchcoversallidentifiedtopics

Thisreportprovidesanoverviewoftheeffortswemadeinthepastfinancialyeartofindvaluablesolutionsfortodayrsquoschallengesandcomplexbusinessproblems

Diversity amp Inclusion

Sustainability in our supply chain

Professional assistance to civil society

Community engagement

Reaching the next generation

Engaging our people

Professional self-fullment of our people

Innovative business solutions

Client satisfaction

Talent management

Wellbeing of our people

Our priorities

6

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our values

AlthoughwerepresentdifferentcultureswithinournetworkandhavedifferentbackgroundssomethingweallhaveincommonisvaluecreationThisdefinesourconducthowwemakeourdecisionsandengagewitheachotherandourclients

Act with integritybull Speak up for what is right especially when

it feels difcult

bull Expect and deliver the highest quality outcomes

bull Make decisions and act as if our personal reputations were at stake

Make a difference

bull Stay informed and ask questions about the future of the world we live in

bull Create impact with our colleagues our clients and society through our actions

bull Respond with agility to the ever-changing environment in which we operate

Work together

bull Collaborate and share relationships ideas and knowledge beyond boundaries

bull Seek and integrate a diverse range of perspectives people and ideas

bull Give and ask for feedback to improve ourselves and others

Reimagine the possiblebull We continuously develop new digitally

adequate solutions

bull We are to understand everybody who we get in contact with

Care

bull Make the effort to understand every individual and what matters to them

bull Recognise the value that each person contributes

bull Support others to grow and work in the ways that bring out their best

Our values

7

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

We build trust in society and to solve important problems with sustainable operation

Financial capitalEquity from partners

third-party debt

Human capitalGraduates

school leaversexperienced hires

Trusted relationshipsBrand and reputation

stakeholder relationships licence to operate

Intellectual capitalTechnical and technological expertise proprietary tools

amp methodologies

Natural resourcesTravel energysupplies for offices

Physical assetsOffices IT equipment

Business inputs Our performanceBusiness strategySustainability strategy

Our impact onsociety

Our purposeTo build trust in society and solve

important problems

Cre

atin

g ex

ceptional insight amp know

-howU

nder

stan

di

ng client needs amp opportunities

Att

ract

ing

and developing diverse talent

Harne

ssin

g te

chno

logy amp delivering distinctive solutions

Four strategic processes ndash Vision 2020

8

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety

Defining the contents of the report Purpose and scope

Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders

Defining the topics

ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable

Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback

Responsible marketing amp communicationsThe PwC brand

OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business

SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS

Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades

When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report

12 What we do to be sustainable ndash our tools

DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents

OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases

Media appearances in the 2017 financial year

Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)

ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata

9

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

13 Key to sustainability our people

Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves

OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear

PwC employees

776Full-time (8-hour)

employment

694Part-time employment

85

Our people

PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds

Forms of employment

Interns

81

10

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Turnover according to age and gender

Position Gender Age FY 2016 FY 2017 FY 2018

PartnerFemale

30-49 5 5 350-69 0 0 1

Male30-49 12 10 1150-69 4 4 6

Staff

FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11

MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10

InternsFemale Under 30 40 15 29

Male Under 30 27 4 38

Total 673 661 776

Staff numbers by position gender and age

New entrants Leavers

FY 2018FY 2017 FY 2018FY 2017

Female

Male

170

105

40

52

2

1

205

127

48

89

5

18

143

121

126

113

118

79

94

79

Under 30

Between30 and 50

Over50

In FY 2018

senior managers joined PwCrsquos leadership

5In FY 2018

5In total

5

colleagues had the opportunity to go on secondment

9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year

11

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Diversity and inclusion

AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface

European Diversity Charter

InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices

Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo

Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary

Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women

Nick Koacutes CEE CEO

HeForShe

WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem

12

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our publications on the topic of diversity

PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications

WEX Day

ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities

13

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Benefits Sporting opportunities promoting a healthy lifestyle

SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)

WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions

OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions

Guaranteed pay

BASE

Variable pay

Company bonus andor sales incentives

Financial incentives

New business bonus referral bonus project bonus

Other incentivesInstant recognition card loyalty recognition success story award

for teams

BenefitsCafeteria insurance promoting health paid company holidays

learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day

Cafeteria plan

WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits

In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers

14

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Outlook ndash inspiring people interesting stories

WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist

I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons

making them more aware of societal issues And all this is done

efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo

Aacutedaacutem Dallos MCBD

Health Day

OurJanuaryHealthDaycentredonthreetopics

bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound

bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers

bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer

Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

4

Responsible business1

5

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

11 The means to sustainability our strategy and values

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices Withofficesin158countriesandmorethan250000peopleweareamongtheleadingprofessionalservicesnetworksintheworldWehelporganisationsandindividualscreatethevaluetheyrsquorelookingforbydeliveringqualityinassurancetaxadvisoryandtechnologyservicesInouroperationwecombinedecadesofaccumulatedexperienceandknowledgewithcutting-edgetechnologiesWesummarisebelowthetopicsthatconstitutethebasisforhowwedobusiness

Prioritising topicsWhilethetopicsareprioritisedinlinewithourstrategytheSustainabilityReportisareportingtoolandassuchcoversallidentifiedtopics

Thisreportprovidesanoverviewoftheeffortswemadeinthepastfinancialyeartofindvaluablesolutionsfortodayrsquoschallengesandcomplexbusinessproblems

Diversity amp Inclusion

Sustainability in our supply chain

Professional assistance to civil society

Community engagement

Reaching the next generation

Engaging our people

Professional self-fullment of our people

Innovative business solutions

Client satisfaction

Talent management

Wellbeing of our people

Our priorities

6

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our values

AlthoughwerepresentdifferentcultureswithinournetworkandhavedifferentbackgroundssomethingweallhaveincommonisvaluecreationThisdefinesourconducthowwemakeourdecisionsandengagewitheachotherandourclients

Act with integritybull Speak up for what is right especially when

it feels difcult

bull Expect and deliver the highest quality outcomes

bull Make decisions and act as if our personal reputations were at stake

Make a difference

bull Stay informed and ask questions about the future of the world we live in

bull Create impact with our colleagues our clients and society through our actions

bull Respond with agility to the ever-changing environment in which we operate

Work together

bull Collaborate and share relationships ideas and knowledge beyond boundaries

bull Seek and integrate a diverse range of perspectives people and ideas

bull Give and ask for feedback to improve ourselves and others

Reimagine the possiblebull We continuously develop new digitally

adequate solutions

bull We are to understand everybody who we get in contact with

Care

bull Make the effort to understand every individual and what matters to them

bull Recognise the value that each person contributes

bull Support others to grow and work in the ways that bring out their best

Our values

7

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

We build trust in society and to solve important problems with sustainable operation

Financial capitalEquity from partners

third-party debt

Human capitalGraduates

school leaversexperienced hires

Trusted relationshipsBrand and reputation

stakeholder relationships licence to operate

Intellectual capitalTechnical and technological expertise proprietary tools

amp methodologies

Natural resourcesTravel energysupplies for offices

Physical assetsOffices IT equipment

Business inputs Our performanceBusiness strategySustainability strategy

Our impact onsociety

Our purposeTo build trust in society and solve

important problems

Cre

atin

g ex

ceptional insight amp know

-howU

nder

stan

di

ng client needs amp opportunities

Att

ract

ing

and developing diverse talent

Harne

ssin

g te

chno

logy amp delivering distinctive solutions

Four strategic processes ndash Vision 2020

8

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety

Defining the contents of the report Purpose and scope

Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders

Defining the topics

ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable

Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback

Responsible marketing amp communicationsThe PwC brand

OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business

SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS

Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades

When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report

12 What we do to be sustainable ndash our tools

DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents

OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases

Media appearances in the 2017 financial year

Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)

ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata

9

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

13 Key to sustainability our people

Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves

OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear

PwC employees

776Full-time (8-hour)

employment

694Part-time employment

85

Our people

PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds

Forms of employment

Interns

81

10

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Turnover according to age and gender

Position Gender Age FY 2016 FY 2017 FY 2018

PartnerFemale

30-49 5 5 350-69 0 0 1

Male30-49 12 10 1150-69 4 4 6

Staff

FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11

MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10

InternsFemale Under 30 40 15 29

Male Under 30 27 4 38

Total 673 661 776

Staff numbers by position gender and age

New entrants Leavers

FY 2018FY 2017 FY 2018FY 2017

Female

Male

170

105

40

52

2

1

205

127

48

89

5

18

143

121

126

113

118

79

94

79

Under 30

Between30 and 50

Over50

In FY 2018

senior managers joined PwCrsquos leadership

5In FY 2018

5In total

5

colleagues had the opportunity to go on secondment

9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year

11

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Diversity and inclusion

AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface

European Diversity Charter

InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices

Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo

Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary

Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women

Nick Koacutes CEE CEO

HeForShe

WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem

12

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our publications on the topic of diversity

PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications

WEX Day

ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities

13

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Benefits Sporting opportunities promoting a healthy lifestyle

SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)

WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions

OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions

Guaranteed pay

BASE

Variable pay

Company bonus andor sales incentives

Financial incentives

New business bonus referral bonus project bonus

Other incentivesInstant recognition card loyalty recognition success story award

for teams

BenefitsCafeteria insurance promoting health paid company holidays

learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day

Cafeteria plan

WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits

In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers

14

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Outlook ndash inspiring people interesting stories

WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist

I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons

making them more aware of societal issues And all this is done

efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo

Aacutedaacutem Dallos MCBD

Health Day

OurJanuaryHealthDaycentredonthreetopics

bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound

bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers

bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer

Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

5

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

11 The means to sustainability our strategy and values

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices Withofficesin158countriesandmorethan250000peopleweareamongtheleadingprofessionalservicesnetworksintheworldWehelporganisationsandindividualscreatethevaluetheyrsquorelookingforbydeliveringqualityinassurancetaxadvisoryandtechnologyservicesInouroperationwecombinedecadesofaccumulatedexperienceandknowledgewithcutting-edgetechnologiesWesummarisebelowthetopicsthatconstitutethebasisforhowwedobusiness

Prioritising topicsWhilethetopicsareprioritisedinlinewithourstrategytheSustainabilityReportisareportingtoolandassuchcoversallidentifiedtopics

Thisreportprovidesanoverviewoftheeffortswemadeinthepastfinancialyeartofindvaluablesolutionsfortodayrsquoschallengesandcomplexbusinessproblems

Diversity amp Inclusion

Sustainability in our supply chain

Professional assistance to civil society

Community engagement

Reaching the next generation

Engaging our people

Professional self-fullment of our people

Innovative business solutions

Client satisfaction

Talent management

Wellbeing of our people

Our priorities

6

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our values

AlthoughwerepresentdifferentcultureswithinournetworkandhavedifferentbackgroundssomethingweallhaveincommonisvaluecreationThisdefinesourconducthowwemakeourdecisionsandengagewitheachotherandourclients

Act with integritybull Speak up for what is right especially when

it feels difcult

bull Expect and deliver the highest quality outcomes

bull Make decisions and act as if our personal reputations were at stake

Make a difference

bull Stay informed and ask questions about the future of the world we live in

bull Create impact with our colleagues our clients and society through our actions

bull Respond with agility to the ever-changing environment in which we operate

Work together

bull Collaborate and share relationships ideas and knowledge beyond boundaries

bull Seek and integrate a diverse range of perspectives people and ideas

bull Give and ask for feedback to improve ourselves and others

Reimagine the possiblebull We continuously develop new digitally

adequate solutions

bull We are to understand everybody who we get in contact with

Care

bull Make the effort to understand every individual and what matters to them

bull Recognise the value that each person contributes

bull Support others to grow and work in the ways that bring out their best

Our values

7

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

We build trust in society and to solve important problems with sustainable operation

Financial capitalEquity from partners

third-party debt

Human capitalGraduates

school leaversexperienced hires

Trusted relationshipsBrand and reputation

stakeholder relationships licence to operate

Intellectual capitalTechnical and technological expertise proprietary tools

amp methodologies

Natural resourcesTravel energysupplies for offices

Physical assetsOffices IT equipment

Business inputs Our performanceBusiness strategySustainability strategy

Our impact onsociety

Our purposeTo build trust in society and solve

important problems

Cre

atin

g ex

ceptional insight amp know

-howU

nder

stan

di

ng client needs amp opportunities

Att

ract

ing

and developing diverse talent

Harne

ssin

g te

chno

logy amp delivering distinctive solutions

Four strategic processes ndash Vision 2020

8

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety

Defining the contents of the report Purpose and scope

Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders

Defining the topics

ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable

Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback

Responsible marketing amp communicationsThe PwC brand

OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business

SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS

Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades

When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report

12 What we do to be sustainable ndash our tools

DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents

OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases

Media appearances in the 2017 financial year

Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)

ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata

9

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

13 Key to sustainability our people

Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves

OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear

PwC employees

776Full-time (8-hour)

employment

694Part-time employment

85

Our people

PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds

Forms of employment

Interns

81

10

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Turnover according to age and gender

Position Gender Age FY 2016 FY 2017 FY 2018

PartnerFemale

30-49 5 5 350-69 0 0 1

Male30-49 12 10 1150-69 4 4 6

Staff

FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11

MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10

InternsFemale Under 30 40 15 29

Male Under 30 27 4 38

Total 673 661 776

Staff numbers by position gender and age

New entrants Leavers

FY 2018FY 2017 FY 2018FY 2017

Female

Male

170

105

40

52

2

1

205

127

48

89

5

18

143

121

126

113

118

79

94

79

Under 30

Between30 and 50

Over50

In FY 2018

senior managers joined PwCrsquos leadership

5In FY 2018

5In total

5

colleagues had the opportunity to go on secondment

9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year

11

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Diversity and inclusion

AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface

European Diversity Charter

InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices

Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo

Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary

Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women

Nick Koacutes CEE CEO

HeForShe

WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem

12

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our publications on the topic of diversity

PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications

WEX Day

ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities

13

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Benefits Sporting opportunities promoting a healthy lifestyle

SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)

WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions

OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions

Guaranteed pay

BASE

Variable pay

Company bonus andor sales incentives

Financial incentives

New business bonus referral bonus project bonus

Other incentivesInstant recognition card loyalty recognition success story award

for teams

BenefitsCafeteria insurance promoting health paid company holidays

learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day

Cafeteria plan

WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits

In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers

14

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Outlook ndash inspiring people interesting stories

WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist

I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons

making them more aware of societal issues And all this is done

efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo

Aacutedaacutem Dallos MCBD

Health Day

OurJanuaryHealthDaycentredonthreetopics

bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound

bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers

bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer

Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

6

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our values

AlthoughwerepresentdifferentcultureswithinournetworkandhavedifferentbackgroundssomethingweallhaveincommonisvaluecreationThisdefinesourconducthowwemakeourdecisionsandengagewitheachotherandourclients

Act with integritybull Speak up for what is right especially when

it feels difcult

bull Expect and deliver the highest quality outcomes

bull Make decisions and act as if our personal reputations were at stake

Make a difference

bull Stay informed and ask questions about the future of the world we live in

bull Create impact with our colleagues our clients and society through our actions

bull Respond with agility to the ever-changing environment in which we operate

Work together

bull Collaborate and share relationships ideas and knowledge beyond boundaries

bull Seek and integrate a diverse range of perspectives people and ideas

bull Give and ask for feedback to improve ourselves and others

Reimagine the possiblebull We continuously develop new digitally

adequate solutions

bull We are to understand everybody who we get in contact with

Care

bull Make the effort to understand every individual and what matters to them

bull Recognise the value that each person contributes

bull Support others to grow and work in the ways that bring out their best

Our values

7

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

We build trust in society and to solve important problems with sustainable operation

Financial capitalEquity from partners

third-party debt

Human capitalGraduates

school leaversexperienced hires

Trusted relationshipsBrand and reputation

stakeholder relationships licence to operate

Intellectual capitalTechnical and technological expertise proprietary tools

amp methodologies

Natural resourcesTravel energysupplies for offices

Physical assetsOffices IT equipment

Business inputs Our performanceBusiness strategySustainability strategy

Our impact onsociety

Our purposeTo build trust in society and solve

important problems

Cre

atin

g ex

ceptional insight amp know

-howU

nder

stan

di

ng client needs amp opportunities

Att

ract

ing

and developing diverse talent

Harne

ssin

g te

chno

logy amp delivering distinctive solutions

Four strategic processes ndash Vision 2020

8

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety

Defining the contents of the report Purpose and scope

Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders

Defining the topics

ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable

Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback

Responsible marketing amp communicationsThe PwC brand

OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business

SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS

Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades

When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report

12 What we do to be sustainable ndash our tools

DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents

OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases

Media appearances in the 2017 financial year

Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)

ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata

9

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

13 Key to sustainability our people

Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves

OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear

PwC employees

776Full-time (8-hour)

employment

694Part-time employment

85

Our people

PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds

Forms of employment

Interns

81

10

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Turnover according to age and gender

Position Gender Age FY 2016 FY 2017 FY 2018

PartnerFemale

30-49 5 5 350-69 0 0 1

Male30-49 12 10 1150-69 4 4 6

Staff

FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11

MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10

InternsFemale Under 30 40 15 29

Male Under 30 27 4 38

Total 673 661 776

Staff numbers by position gender and age

New entrants Leavers

FY 2018FY 2017 FY 2018FY 2017

Female

Male

170

105

40

52

2

1

205

127

48

89

5

18

143

121

126

113

118

79

94

79

Under 30

Between30 and 50

Over50

In FY 2018

senior managers joined PwCrsquos leadership

5In FY 2018

5In total

5

colleagues had the opportunity to go on secondment

9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year

11

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Diversity and inclusion

AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface

European Diversity Charter

InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices

Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo

Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary

Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women

Nick Koacutes CEE CEO

HeForShe

WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem

12

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our publications on the topic of diversity

PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications

WEX Day

ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities

13

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Benefits Sporting opportunities promoting a healthy lifestyle

SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)

WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions

OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions

Guaranteed pay

BASE

Variable pay

Company bonus andor sales incentives

Financial incentives

New business bonus referral bonus project bonus

Other incentivesInstant recognition card loyalty recognition success story award

for teams

BenefitsCafeteria insurance promoting health paid company holidays

learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day

Cafeteria plan

WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits

In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers

14

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Outlook ndash inspiring people interesting stories

WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist

I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons

making them more aware of societal issues And all this is done

efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo

Aacutedaacutem Dallos MCBD

Health Day

OurJanuaryHealthDaycentredonthreetopics

bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound

bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers

bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer

Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

7

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

We build trust in society and to solve important problems with sustainable operation

Financial capitalEquity from partners

third-party debt

Human capitalGraduates

school leaversexperienced hires

Trusted relationshipsBrand and reputation

stakeholder relationships licence to operate

Intellectual capitalTechnical and technological expertise proprietary tools

amp methodologies

Natural resourcesTravel energysupplies for offices

Physical assetsOffices IT equipment

Business inputs Our performanceBusiness strategySustainability strategy

Our impact onsociety

Our purposeTo build trust in society and solve

important problems

Cre

atin

g ex

ceptional insight amp know

-howU

nder

stan

di

ng client needs amp opportunities

Att

ract

ing

and developing diverse talent

Harne

ssin

g te

chno

logy amp delivering distinctive solutions

Four strategic processes ndash Vision 2020

8

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety

Defining the contents of the report Purpose and scope

Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders

Defining the topics

ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable

Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback

Responsible marketing amp communicationsThe PwC brand

OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business

SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS

Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades

When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report

12 What we do to be sustainable ndash our tools

DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents

OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases

Media appearances in the 2017 financial year

Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)

ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata

9

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

13 Key to sustainability our people

Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves

OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear

PwC employees

776Full-time (8-hour)

employment

694Part-time employment

85

Our people

PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds

Forms of employment

Interns

81

10

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Turnover according to age and gender

Position Gender Age FY 2016 FY 2017 FY 2018

PartnerFemale

30-49 5 5 350-69 0 0 1

Male30-49 12 10 1150-69 4 4 6

Staff

FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11

MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10

InternsFemale Under 30 40 15 29

Male Under 30 27 4 38

Total 673 661 776

Staff numbers by position gender and age

New entrants Leavers

FY 2018FY 2017 FY 2018FY 2017

Female

Male

170

105

40

52

2

1

205

127

48

89

5

18

143

121

126

113

118

79

94

79

Under 30

Between30 and 50

Over50

In FY 2018

senior managers joined PwCrsquos leadership

5In FY 2018

5In total

5

colleagues had the opportunity to go on secondment

9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year

11

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Diversity and inclusion

AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface

European Diversity Charter

InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices

Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo

Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary

Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women

Nick Koacutes CEE CEO

HeForShe

WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem

12

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our publications on the topic of diversity

PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications

WEX Day

ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities

13

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Benefits Sporting opportunities promoting a healthy lifestyle

SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)

WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions

OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions

Guaranteed pay

BASE

Variable pay

Company bonus andor sales incentives

Financial incentives

New business bonus referral bonus project bonus

Other incentivesInstant recognition card loyalty recognition success story award

for teams

BenefitsCafeteria insurance promoting health paid company holidays

learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day

Cafeteria plan

WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits

In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers

14

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Outlook ndash inspiring people interesting stories

WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist

I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons

making them more aware of societal issues And all this is done

efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo

Aacutedaacutem Dallos MCBD

Health Day

OurJanuaryHealthDaycentredonthreetopics

bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound

bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers

bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer

Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

8

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our sustainability report ndash a reflection of our activityInourSustainabilityReportforFY2018wesummarisetheactivities our colleagues carry out every day to ensure PwCrsquos operationasasustainablebusinessThecontentofthereportreflectsourcommitmenttoourcolleaguesourclientsandsociety

Defining the contents of the report Purpose and scope

Thepurposeofthisreportistobeacomprehensivesourceofinformationforallofourstakeholders

Defining the topics

ThetopicscoveredherehavebeendefinedonthebasisoftheinformationrequestedbyourleadersandrepresentativesofourvariousunitsEveryyearwedefinetherighttoolstoexamineandimprovethesetopicsandtomakethemsustainable

Collectinginformationonanongoingbasisanalysingouractivitiescoordinatingwithourorganisationalunitsengagingstakeholdergroupsincorporatingfeedback

Responsible marketing amp communicationsThe PwC brand

OurpublicimagedependsonhowwecommunicateaboutourselvesandouractivitiesOneofthetasksofPwC Hungaryrsquos Marketing Communications and Business

SUSTAINABLE DEVELOPMENT GOALS ndash SDG COMPASS

Our aim each year is to assess our impact on the environment We pay special attention to putting into practice the Sustainable Development Goals (SDGs) adopted by the United Nations at its Sustainable Development Summit of heads of state and government held between 25ndash27 September 2015 This set of 17 goals forms the UN Member Statesrsquo development agenda until 2030 and provides a basis for businesses governments and the public to work together for a safer and more hospitable world We have been part of this joint undertaking for nearly three decades

When defining the topics of our latest Sustainability Report we included a description of our efforts concerning three of the SDGs These efforts are described in Chapters 2 and 3 of this report

12 What we do to be sustainable ndash our tools

DevelopmentteamistofindrelevantformsandchannelsofcommunicationthatallowustoaddressourvariousstakeholdergroupsOurstaffisassistedinthistaskbymoderndigitaltechnologiesPwCrsquossignaturebrandelementsandevents

OurmarketpresenceistheresultofaconsciousanddeliberatemarketingcommunicationsstrategythatwehavebeenapplyingforyearsOurcorporateimagedevelopedin2010isstructuredyetcolourfulanddynamicAllmembersofthePwCnetworkhaveastaffmemberintheirMarketingCommunicationsandBusinessDevelopmentteamwhosedutyistoensurethatallcommunicationsmaterialscomplywiththerulesandprinciplesconcerningthePwCbrandandtradenameasdeterminedbythePwCGlobalBrandteamStartingwiththepreviousfinancialyearwehavebeenprovidingregulartrainingtoouremployeesonthemostimportantbrandrulesandtheirpracticalapplicationOuraimistopresentauniformcorporateimagewhetherinprintpublicationssportssponsorshiparrangementsclienteventsorpressreleases

Media appearances in the 2017 financial year

Inthefinancialyearendedon30June2018wehad1472mediaappearancesoutofwhich820werepositive584wereneutraland68werenegative(Notethemediaanalysiswasprepared by Front Page Communications based on its own mediaappearanceanalysistool)

ManagingourclientdatabaseisalsotheresponsibilityoftheMarketingCommunicationsandBusinessDevelopmentteamInthe2018financialyearwereceivednocomplaintsofabuseofpersonalclientinformationlossorunauthoriseduseofclientdata

9

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

13 Key to sustainability our people

Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves

OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear

PwC employees

776Full-time (8-hour)

employment

694Part-time employment

85

Our people

PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds

Forms of employment

Interns

81

10

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Turnover according to age and gender

Position Gender Age FY 2016 FY 2017 FY 2018

PartnerFemale

30-49 5 5 350-69 0 0 1

Male30-49 12 10 1150-69 4 4 6

Staff

FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11

MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10

InternsFemale Under 30 40 15 29

Male Under 30 27 4 38

Total 673 661 776

Staff numbers by position gender and age

New entrants Leavers

FY 2018FY 2017 FY 2018FY 2017

Female

Male

170

105

40

52

2

1

205

127

48

89

5

18

143

121

126

113

118

79

94

79

Under 30

Between30 and 50

Over50

In FY 2018

senior managers joined PwCrsquos leadership

5In FY 2018

5In total

5

colleagues had the opportunity to go on secondment

9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year

11

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Diversity and inclusion

AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface

European Diversity Charter

InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices

Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo

Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary

Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women

Nick Koacutes CEE CEO

HeForShe

WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem

12

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our publications on the topic of diversity

PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications

WEX Day

ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities

13

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Benefits Sporting opportunities promoting a healthy lifestyle

SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)

WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions

OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions

Guaranteed pay

BASE

Variable pay

Company bonus andor sales incentives

Financial incentives

New business bonus referral bonus project bonus

Other incentivesInstant recognition card loyalty recognition success story award

for teams

BenefitsCafeteria insurance promoting health paid company holidays

learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day

Cafeteria plan

WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits

In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers

14

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Outlook ndash inspiring people interesting stories

WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist

I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons

making them more aware of societal issues And all this is done

efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo

Aacutedaacutem Dallos MCBD

Health Day

OurJanuaryHealthDaycentredonthreetopics

bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound

bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers

bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer

Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

9

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

13 Key to sustainability our people

Sustainability depends not only on an organisationrsquos strategy anddecisionsbutalsoonthepeoplewhoworktoachievethisgoalTheyareactivelyshapingwhatPwCstandsforinHungaryWepresentbelowourstaffnumbersandhowweworkdaybydayandwhatPwCisdoingtoenableitsemployeestomakethemostofthemselves

OurtotalstaffinHungarynumbered776accordingtostatisticaldataasofthelastdayofthe2018financialyear

PwC employees

776Full-time (8-hour)

employment

694Part-time employment

85

Our people

PwCstaffnumbersareconstantlyadaptedtomarketchangesandfluctuationsinbusinessdemandthroughouttheyearwhilealsoaccommodatingemployeeneeds

Forms of employment

Interns

81

10

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Turnover according to age and gender

Position Gender Age FY 2016 FY 2017 FY 2018

PartnerFemale

30-49 5 5 350-69 0 0 1

Male30-49 12 10 1150-69 4 4 6

Staff

FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11

MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10

InternsFemale Under 30 40 15 29

Male Under 30 27 4 38

Total 673 661 776

Staff numbers by position gender and age

New entrants Leavers

FY 2018FY 2017 FY 2018FY 2017

Female

Male

170

105

40

52

2

1

205

127

48

89

5

18

143

121

126

113

118

79

94

79

Under 30

Between30 and 50

Over50

In FY 2018

senior managers joined PwCrsquos leadership

5In FY 2018

5In total

5

colleagues had the opportunity to go on secondment

9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year

11

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Diversity and inclusion

AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface

European Diversity Charter

InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices

Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo

Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary

Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women

Nick Koacutes CEE CEO

HeForShe

WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem

12

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our publications on the topic of diversity

PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications

WEX Day

ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities

13

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Benefits Sporting opportunities promoting a healthy lifestyle

SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)

WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions

OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions

Guaranteed pay

BASE

Variable pay

Company bonus andor sales incentives

Financial incentives

New business bonus referral bonus project bonus

Other incentivesInstant recognition card loyalty recognition success story award

for teams

BenefitsCafeteria insurance promoting health paid company holidays

learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day

Cafeteria plan

WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits

In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers

14

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Outlook ndash inspiring people interesting stories

WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist

I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons

making them more aware of societal issues And all this is done

efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo

Aacutedaacutem Dallos MCBD

Health Day

OurJanuaryHealthDaycentredonthreetopics

bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound

bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers

bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer

Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

10

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Turnover according to age and gender

Position Gender Age FY 2016 FY 2017 FY 2018

PartnerFemale

30-49 5 5 350-69 0 0 1

Male30-49 12 10 1150-69 4 4 6

Staff

FemaleUnder 30 124 142 16630-49 170 180 22750-69 8 11 11

MaleUnder 30 153 156 13730-49 120 122 13750-69 10 12 10

InternsFemale Under 30 40 15 29

Male Under 30 27 4 38

Total 673 661 776

Staff numbers by position gender and age

New entrants Leavers

FY 2018FY 2017 FY 2018FY 2017

Female

Male

170

105

40

52

2

1

205

127

48

89

5

18

143

121

126

113

118

79

94

79

Under 30

Between30 and 50

Over50

In FY 2018

senior managers joined PwCrsquos leadership

5In FY 2018

5In total

5

colleagues had the opportunity to go on secondment

9 staff members (2 female and 3 male) spent the year on secondment having been posted prior to the beginning of the current nancial year

11

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Diversity and inclusion

AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface

European Diversity Charter

InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices

Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo

Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary

Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women

Nick Koacutes CEE CEO

HeForShe

WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem

12

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our publications on the topic of diversity

PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications

WEX Day

ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities

13

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Benefits Sporting opportunities promoting a healthy lifestyle

SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)

WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions

OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions

Guaranteed pay

BASE

Variable pay

Company bonus andor sales incentives

Financial incentives

New business bonus referral bonus project bonus

Other incentivesInstant recognition card loyalty recognition success story award

for teams

BenefitsCafeteria insurance promoting health paid company holidays

learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day

Cafeteria plan

WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits

In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers

14

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Outlook ndash inspiring people interesting stories

WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist

I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons

making them more aware of societal issues And all this is done

efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo

Aacutedaacutem Dallos MCBD

Health Day

OurJanuaryHealthDaycentredonthreetopics

bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound

bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers

bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer

Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

11

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Diversity and inclusion

AtPwCwerespectandvaluedifferencesbecauseeverysingleoneofusisdifferentndash236000peoplein158countriesWeknowthatwhenpeoplefromdifferentbackgroundsandwithdifferentpointsofviewworktogetherwecreatethemostvaluendashforourclientsourpeopleandsocietyWehavesetupataskforcecomprisingbothmaleandfemalecolleaguesofdifferentagesandbackgroundstodiscussandpromotediversityandinclusionintheworkplaceandhelpfindrealanswerstoproblemsourpeopleface

European Diversity Charter

InOctober2017wesignedtheEuropeanDiversityCharterforthesecondtimewhichpromotesdiversityandanti-discriminationintheworkplaceItsmainobjectiveistoraiseleadersrsquoawarenessandtoincreasetheircommitmenttomainstreamingdiversityintheirorganisationsbyprovidingsupportandinspirationfordevelopinghumanresourcemanagementInHungarytheorganisationresponsiblefortheDiversityCharterandrelatedactivitiesistheHungarianBusinessLeadersrsquoForum(HBLF)Oneofourcolleaguesactively participates in HBLFrsquos Diversity Target Group regularly attends meetings and occasionally invites members oftheGrouptoeventswherewecanshowcaseouractivitiesandlearnfromeachotherrsquosbestpractices

Our commitment to diversity and inclusion is exemplified by our event series Aspire to Lead flexible work options for part-time mothers our social responsibility project ldquoItrsquos about othersrdquo aimed at college students and integrating career starters and secondees arriving from abroad In October I proudly signed the European Diversity Charter on PwC Hungaryrsquos behalf and I will continue to strive to turn this commitment into actionrdquo

Maacuterta Szűcs Partner Assurance Diversity amp Inclusion Leader PwC Hungary

Gender equality for me means not just supporting women in the workplace but to live private lives in gender equality as well I want all daughters to see across the world positive examples from men supporting gender equality supporting women with all their heart and actions And I want my sons to live in a world where men support and respect women

Nick Koacutes CEE CEO

HeForShe

WebelieveitisveryimportantthatwomenaretreatedequallyinandoutsidetheworkplaceandwearecommittedtoensuringthattheiropinionsandideasaregiventhesameweightasthoseoftheirmalecolleaguesThatiswhywehavejoinedtheglobal initiative HeForSheandweencouragethestaffinourHungarianofficetosharetheirthoughtsonwhythiscauseisimportanttothem

12

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our publications on the topic of diversity

PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications

WEX Day

ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities

13

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Benefits Sporting opportunities promoting a healthy lifestyle

SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)

WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions

OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions

Guaranteed pay

BASE

Variable pay

Company bonus andor sales incentives

Financial incentives

New business bonus referral bonus project bonus

Other incentivesInstant recognition card loyalty recognition success story award

for teams

BenefitsCafeteria insurance promoting health paid company holidays

learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day

Cafeteria plan

WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits

In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers

14

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Outlook ndash inspiring people interesting stories

WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist

I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons

making them more aware of societal issues And all this is done

efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo

Aacutedaacutem Dallos MCBD

Health Day

OurJanuaryHealthDaycentredonthreetopics

bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound

bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers

bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer

Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

12

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Our publications on the topic of diversity

PwCrsquosexpertsregularlycoverthesubjectofdiversityandinclusionRecurringtopicsincludeyouthemploymentwomenrsquosandseniorsrsquopositioninthelabourmarketandwehavealsopreparedasurveyjointlywithOutLeadershiponthesituationofLGBTstaffmembersClickthecoverimagesbelowtoaccessourpublications

WEX Day

ldquoInterns are todayrsquos career startersrdquoisourmottowhenitcomestothefuturegenerationaswerecognisethestrategicimportanceofstudentsworkingasinternsatourfirmWeheldourfirstInternsrsquoDaylastMayinwhichmorethan50interns actively participated in inspiring presentations and variousgamesandactivities

13

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Benefits Sporting opportunities promoting a healthy lifestyle

SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)

WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions

OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions

Guaranteed pay

BASE

Variable pay

Company bonus andor sales incentives

Financial incentives

New business bonus referral bonus project bonus

Other incentivesInstant recognition card loyalty recognition success story award

for teams

BenefitsCafeteria insurance promoting health paid company holidays

learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day

Cafeteria plan

WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits

In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers

14

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Outlook ndash inspiring people interesting stories

WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist

I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons

making them more aware of societal issues And all this is done

efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo

Aacutedaacutem Dallos MCBD

Health Day

OurJanuaryHealthDaycentredonthreetopics

bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound

bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers

bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer

Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

13

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Benefits Sporting opportunities promoting a healthy lifestyle

SportsshouldbeapartofabalancedlifestyleTothatendweoffersportingopportunitiesforouremployeesincludingsportsclubmembershipsweeklyin-housePilatesclassesandparticipation in team sports organised by PwC (soccer and volleyball)

WealsosupportsportsandahealthyandenvironmentallyresponsiblelifestylebycontributingtowardsMOLBubi(publicbicyclefleet)passesandeachspringweorganiseourin-houseStep Counting and Cycle to WorkcompetitionsInadditiontocontributingtoahealthylifestyleplayingsportstogetherisalsoexcellentforbuildingourcorporatecommunityEveryyearweorganiseasportsdaywhereour employees can take part in individual relay and team competitions

OuremployeescanjoinourautumnbicycletourtogetherwiththeirfamilymembersOurmaleandfemalesoccerteamshaveconsistentlyscoredhighinannualregionalPwC soccer tournaments and we regularly enter teams in majorHungariancorporatesportingeventsandrunningcompetitions

Guaranteed pay

BASE

Variable pay

Company bonus andor sales incentives

Financial incentives

New business bonus referral bonus project bonus

Other incentivesInstant recognition card loyalty recognition success story award

for teams

BenefitsCafeteria insurance promoting health paid company holidays

learning amp development sports flexitime company events sabbatical leave high-tech equipment fruit day

Cafeteria plan

WeintroducedaCafeteriaplanin2008toprovideouremployeesbenefitsinadditiontosalaryWeprepareandannuallyreviewourcafeteriabenefitpackageinviewoflegislativechangesandouremployeesrsquoneedsmakingsurethatitisasflexibleaspossibleInFY2016weconductedadetailedemployeebenefitssurveytoaskaboutsatisfactionwithexistingbenefitsaswellasconsiderationofpotentialnewbenefits

In2018thefollowingbenefitscanbechosenelectronicculturaleventvouchershealthinsurancehomepurchaseloanrepaymentassistancesupportforlanguagecoursesemployer-assistedhousingandchildcare(nurseryschoolkindergarten)SZEacutePcardcafeteriacashbenefitandelectronicgiftvouchers

14

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Outlook ndash inspiring people interesting stories

WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist

I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons

making them more aware of societal issues And all this is done

efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo

Aacutedaacutem Dallos MCBD

Health Day

OurJanuaryHealthDaycentredonthreetopics

bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound

bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers

bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer

Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

14

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Outlook ndash inspiring people interesting stories

WelaunchedPwCOutlookinsummer2017aneventseriesthatshowcasesinterestingandinspiringstoriesofsuccessfulpeopleinvariousfieldsnotcloselyrelatedtoouroperationsintheformofanhour-longmoderatedconversationwiththeinvitedguestsGuestshaveincludedHungarianactoranddirectorPaacutelMaacutecsaiAndraacutesHajoacutessingerandtelevisionhostAttilaChikaacuteneconomistgossipresearcherZsuzsaSzvetelszkyandTitanillaFiaacutethprisonpsychologist

I think it is a worthwhile investment for a company like PwC to put energy into developing its employees and not only strictly professionally but in a way that broadens their horizons

making them more aware of societal issues And all this is done

efficiently and in an entertaining way Irsquom particularly pleased that in addition to our colleagues anybody who follows us will be able to experience these values by watching the recorded conversations As a result PwC Outlook can serve external as well as internal employer branding purposesrdquo

Aacutedaacutem Dallos MCBD

Health Day

OurJanuaryHealthDaycentredonthreetopics

bull ldquoA healthy mind in a healthy bodyrdquondashEmployeeshadtheopportunitytosignupforhealthscreeningsegmanuallocomotorexaminationarteriographytumourmarkertestsabdominalandpelvicultrasound

bull ldquoHow to help others and save livesrdquo ndash We organised a firstaidandCPRcourseopentoallstaffmembers

bull ldquoWhat do people die fromrdquondashAthought-provokingpresentationbyZoltaacutenMarsihealthpromoteranduniversitylecturer

Lunch amp Learn ndash We learn from each other Wethinkitisimportanttoshareourexpertiseandknowledgenotonlywithourclientsbutalsoin-housewhichisthepurposeofourLunchampLearneventsOurcolleaguesgivepresentationsoninternalprojectsservicesandothermattersofinterestwithbuffet-stylelunchprovidedRecenttopicsincludedourCRactivitiesandnewreportspublishedonthecirculareconomyandonbusinessopportunitiesine-sportsNearly600staffmembersparticipatedintheseevents

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

15

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Employer-employee relationship

Annual Global People Survey

EachspringweconductaGlobalPeopleSurvey(GPS)toaskourstaffmembershowtheyfeelattheworkplaceInthepreviousGPSSurvey85ofouremployeesfilledoutthequestionnaire

TheGPSquestionnairecontainsnearly100questionsinabusiness-specificbreakdownAsaresultoftheGPSsurveywegainaproperpictureoftheareastodevelopinouroperationEveryyearwesharetheresultsoftheGPSsurveywithouremployeesandaddressthemostimportantissuestheyraiseinvariousforums

Our colleagues among our colleagues globally give feedback and valuation about the following topics

Commitment Flexible worktime Innovation

Team-work Diversity and inclusion

Allowance and recognition

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

16

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Workday and recruitment

TheworkofourRecruitmentteamwithinHumanResourcesinvolves recruiting and selecting new colleagues according to marketneedsWearepresentinseveralonlineplatformsandeventswhereprospectiveemployeescangettoknowourfirmandthepositionsweofferTheeventsweorganiseareverypopularandallowparticipantsafirst-handglimpseintoourworkandoperations

Advisory by night

An open evening introducing our Advisory service line aimed primarilyatrecentgraduatesandcollegestudentsInteractivegamewithinterestingtasksfollowedbyanetworkingsessionLastyearwehad40participants

Risks and side effects ndash PwC IT

An open evening introducing our Risk Assurance Services team aimed primarily at recent graduates and college studentsInteractivegamewhichshowcasesthevariedworkoftheteamfollowedbyanetworkingsession

Auditorsrsquo evening

An open evening introducing our Assurance service line aimedprimarilyatrecentgraduatesandcollegestudentsInteractivegameinwhichparticipantsassistintheauditofthefinancialstatementsofanimaginarycompanyfollowedbyanetworkingsessionThenumberofparticipantslastyearwas25

Smart and TaxyAn open evening introducing our Tax Advisory Services aimedprimarilyatrecentgraduatesandcollegestudentsTax-themedboardgamefollowedbyanetworkingsessioninwhich50youthparticipatedlastyear

Workday A single system for human resource management

In2018PwCbegantherolloutofWorkdayitsfirstglobalhumanresourcemanagementsystemWorkdayisacloud-basedplatformthatprovidesunifiedhumanresourcesmanagementcloudapplicationsthatcanbeaccessedanytimeanywhereacrossalldevicesAkeyadvantageofWorkdayisthatitreducestheadministrativeburdenofHRoperationsandallowsustofocusonthestrategicmanagementofourpeoplersquosdevelopment

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

17

Responsible partnership2

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

18

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

21 Corporate responsibility strategy

OurCRstrategybothgloballyandlocallyfocusesonareassuchasappreciatingourpeoplementoringthenextgenerationanddevelopinginnovativebusinesssolutionsWehopetoachievemeasurableandlastingpositivechangeintheseareaswhileimplementingourstrategyOurannualsustainability report on our corporate sustainability initiatives provides transparency and contributes to keeping our stakeholdersinformed

Our report presents our corporate responsibility programmes ourplansandidentifiestheareasthatneedimprovement

Inrecentyearscorporateresponsibility(CR)activitieshavebecomeanintegralpartofPwCHungaryrsquosoperationsOurMarketing Communications and Business Development team hasadedicatedspecialistresponsibleforcoordinatingourCRactivitiesTheseactivitiesaredesignedtobeaswide-rangingandvariedaspossibletoallowouremployeestofindanareaorcausewheretheyfeeltheycanhelpwithprofessionalworkorphysicalsocialactivity

WebelievethatinadditiontofinancialsupportwecancreatepermanentandsustainablevalueforourdirectandindirectstakeholdersthroughourcoreprofessionalactivitiestechnicalexpertiseandrelatedservicesAccordinglythroughoutthefinancialyearweprovideprofessionalassistancetocivilsocietyorganisationsorofferprobonoservicesinvolvingasmanyofouremployeesaspossible

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

19

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Standard measurement system across the global PwC network

ToenablePwCtomeasureandgloballycomparetheoperationsandCRactivitiesofitsmemberfirmsalongthefourpillarsofourCRstrategy(marketplaceworkplaceenvironmentandcommunity)theGlobalCorporateResponsibilityBureau(GCRB)hasdevelopedameasurementsystemcalledldquoLeadership-ladderself-assessmentrdquo

MembersofthePwCnetworkreporttheirdataattheendofeachfinancialyearwhichforusisattheendofJulyByaggregatingsuchdatawegetaglobalpictureofouroperationsandCRactivitiesduringtheyearaswellasoftheareasthatneedimprovementandforwhichanactionplanmustbedevelopedThecombinedresultsofthemembersofthePwCnetworkarepublishedinourGlobalAnnualReviewinOctobereveryyear

850 00060 5001843 m USD

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

34855406 995 471 HUF

Financial and in-kind donation

Number of volunteers

Volunteering work (hours)

CR management

InourcompanyCRasafunctionaltask(ietheprojectsbelongingtotheCRstrategythecoordinationandmonitoringofactionplansandinitiativesanduniforminternalandexternalCRcommunication)iscarriedoutbytheMarketingCommunicationsandBusinessDevelopment(MCBD)teamConceptualandstrategicCRplanningisthetaskoftheCRstrategyteamwhichincludestheheadofMCBD(BorbaacutelaPalotai)theCRManager(KatalinSimon)acoordinator(AnitaReacutecsaacutenyi)andtwopartnersfromtheAssuranceserviceline(BalaacutezsMeacuteszaacuterosandLaacuteszloacuteRadvaacutenyi)whoprovidetechnicalsupporttotheCRteam

OfcoursetheseplanningactivitiesoccurwithourCEOrsquosoversightandco-operationOuremployeeshelpusorganiseandimplementspecificprogrammesThecontentoftheSustainabilityReportisapprovedbyBalaacutezsMeacuteszaacuterosPartner

WehavesetupaldquogreenofficerdquotaskforcetopromoteenvironmentallyconsciousimprovementsMembersofthetaskforcemeeteverymonthandeveryoneisencouragedtojoinInthe2018financialyearmanycolleaguesfromvariousareasjoinedthegreentaskforcearesultofoureffortstointensifycooperationandinvolvementinthepast12monthsFordetailedresultsseethesectionldquoEnvironmentalandoperationalawarenessrdquo

InFY2017wealreadysetupaDiversityampInclusiontaskforceledbyaMaacutertaSzűcspartnerInthe2018financialyearEacutevaBresztyenszkyjoinedasHRleadertoreinforcetheteamWeinvolvedcolleaguesfromeveryservicelinendashTaxAdvisoryAssurance Advisory and Internal Firm Services ndash in order to identifyareaswherethereisstillworktobedonewithregardtodiversityandinclusionAkeyobjectiveofthe2019financialyearwillbestrategydevelopmentandimplementation

Globally

In Hungary

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

20

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Our community initiatives ndash pwctegyunkerte

TheroleweplayinsocietyisdeterminednotonlybythestrategywesetforourselvesbutalsobytheactivitiesweactuallycarryouttorealisethesegoalsOverthelastyearwehaveengagedourpeopleindifferentinitiativesgearedtowardopennessandresponsivenesstosocietalconcerns

Volunteer Week

WehaveorganizedourVolunteerWeekannuallysince2014ThemostpopulareventoftheweekisVolunteerDayInDecember2017nearly500PwCstaffvisitedvariousnon-profitorganizationsfoundationsschoolsandsocialenterprisestogetacquaintedandtodonatetheirlabourandskillsAmongotheractivitieswehelpedwithrenovationsat Down Foundation and at Veacutenusz Kindergarten in Csepel packedsweetsatKockacsokidecoratedtheemergencywardattheChildrenrsquosClinicinTűzoltoacuteStreetpreparedKicsiPakkgiftpackagestofulfiltheChristmaswishesofdisadvantagedchildrenvolunteeredfortheHonveacutedHagyomaacutenyőrzőEgyesuumlletandmadecrochetedoctopusesfornew-bornbabies

Ourexpertsprovidedfreein-housetrainingforrepresentativesofnon-profitorganisationsontaxationdataprotectionandstrategydevelopmentWhatdoesthisdaymeantoourcolleaguesandwhatothergoodcausesdidtheysupportWatchourvideotofindout

WealsoorganizedaCharityCakeSaleandcollected HUF184750forMotivaacutecioacuteFoundationforPhysicallyDisabledPersonsOurpeoplealsodonatedblood(oneofthreeblooddonationdrivesweorganizeeachyear)TheweekconcludedwithaChristmasMarketwhichofferedmerchandisehandcraftedbypeoplewithdisabilities

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

21

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Step Counting and Cycle to Work

IthasbecomeatraditionatPwCHungarytoorganiseall-staffteamcompetitionsInadditiontopromotingahealthylifestyleourstepcountingandCycletoWorkcompetitionsarealsogreatteambuildingactivitiesWeannouncedthewinnersduringourSummerSportsDaywherewealsoprovidedtrainingtoourcyclistcolleagues

Itrsquos about others

WelaunchedourCRprojectldquoItrsquosaboutothersrdquofortheseventhtimein2017OuraimistoshowthatitisnotenoughtotalkaboutcorporateresponsibilitybutwemusttakeactionWewouldliketoraisestudentsrsquoandemployeesrsquoawarenessoftheimportanceofcorporateresponsibilityandgivegroupsengagedinthisfieldtheopportunitytocarryouttheirowncorporateresponsibilityprojectsWealsofosterlong-termcollaborationwiththefinalistteamsforexampleweprovidedavenuefortheldquoKoumlssuumlnkoumlsszerdquocharityclothessaleforthesecondtimeandduringtheSummerSportsDaymembersofldquoMindtheMindrdquogaveanawareness-raisingpresentationonmentalillnesses

Blood donation

Inordertoassistourcommunityrsquoseffortstoprovideasafeandadequate blood supply we organise blood donation drives in ourofficethreetimesayearco-hostedbytheHungarianRedCrossTheblooddonationsareinSeptemberDecemberandAprilandinadditiontoPwCstaffwealsoinviteemployeesofothercompaniesintheEiffelPalacetotakepart

Note The number of people signing up for blood donation is always higher than the number of those who can actually donate following a medical exam We quote the latter figure in our report

Offering free access to our venues

ThankstoourofficelayoutintheEiffelPalacewehaveaconferencespacewhereweorganisebothinternalandexternalprofessionalorcommunityeventsDependingonavailabilityweoffervenuesforhiretonon-profitorganisationsfreeofchargeWesupportthemthiswaysotheycansavetherentalfeeswhentheyneedavenuefortheirevents

Inthepastfinancialyearweprovidednearly200hoursofaccesstoourvenuesfreeofchargeforthefollowingnon-profitorganisationsandevents

BAGaacutezs Koumlzhasznuacute EgyesuumlletGAK Nonprofit Koumlzhasznuacute KftGlobonoldquoKoumlssuumlnk oumlsszerdquo ndash Clothing sale for charityHintalovon AlapiacutetvaacutemyHungarian Donorsrsquo ForumNESsT HungaryFemale entrepreneursVolunteering Hungary ndash Centre of Social Innovation (OumlKA)

1 campaign ndash What takes you only five minutes is vital for a civil society organisation

WebelieveitisimportantthatouremployeesextendsocialresponsibilityalsototheirprivatelivesTothisendwelaunchacampaigneveryyeartocalltheirattentiontotheimportanceofdonating1oftheirpersonalincometaxAsof2018employersarenolongerallowedtopreparetheiremployeesrsquotaxreturnswhichincreasestheriskthattaxpayersforgetaboutdonationThereforeweturnedaspotlightonthecampaignthisyearAsusualwepreparedalistofcivilsocietyorganisationsandfoundationswecomeintocontactwithduringtheyearandprovideddetailedguidancetoensurethatthedonationsreachtheirrecipientsAspartofthecampaignweusedthechalkboardinourdiningroomtodisplaynamesofpotentialrecipientorganisationsandtheirbrochures

41persons

August2017

38persons

December 2017

22persons

April2018

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

22

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Training and education

EducationisoneofthepillarsofcompetitivenessforbothsocietyandindividualsItisdifficultornotatallpossibletopreparelearnersforrapidtechnologicaladvancesundertheconventionaltrainingmodelswhichiswhyeducationalpolicyposesmanychallengesalmostallovertheworldLifelonglearningisgainingincreasingimportance

ThePwCnetworkiscommittedbothgloballyandlocallyinHungarytosharingknowledgeandprovidingtechnicalassistanceTrainingactivitiesorindirecttrainingdevelopmentconstituteimportantelementsofourcommunityengagementWeseethisasalong-terminvestmentwhichcouldaddressfuturechallengesandhelpdisadvantagedgroupscatchup

QualityeducationisoneofthegloballyadoptedSustainableDevelopmentGoals(seepage8fordetails)Basedonourcoreactivities supporting quality education and using our assets to contributetothedevelopmentoftheHungarianeducationalsystemarefocusareasforthefuture How did we support the development of organisations in

the financial year 2018 in Hungary

Basicallyweperformknowledgesharinganddevelopmentactivitiesbyofferingprobonoservicestrainingandmentoring

In FY 2018 we delivered

1572 hours of pro bono professional services

European Pro Bono Summit

In October 2017 Budapest hosted the annual European Pro Bono Summit an international conference on skills-based corporate volunteering

Attendees came from nearly 30 countries and included members of the Global Pro Bono Network During the two-day event the leaders of businesses and non-profits had an opportunity to meet and exchange views The conference was organised by Volunteering Hungary ndash Centre of Social Innovation and sponsored by PwC Hungary

Our pro bono activities

Threeofourcolleaguesledaprobonoprojectfor Fazekas Mihaacutely Secondary SchoolinBudapestTheprojectinvolved270advisorandmanagerhoursspentonconductingan operational due diligence review and resulted in 21 operationaland5systemdevelopmentrecommendations

ThesecondIacutezlelő family-friendly restaurant will be opened inDistrictXIIinBudapestThefirstrestauranttoemploypersonswithdisabilitiesinHungaryhasbeensuccessfullyoperatinginSzekszaacuterdfortenyearsAfewyearsagosomeofourcolleaguesvolunteeredworkfortherestaurantandgotacquaintedwiththewayitisrunTheorganisationanditsemployeeshavebecomeourreliablesuppliersWesupportedthemincommunicationtasksinrelationtoopeningthenewrestaurantinBudapest

Our Pro Bono clients

American International School of BusinessBOM Foundation for Hungarian SportBudapesti Fazekas Mihaacutely High SchoolMagic Lamp Wish Granting FoundationHungarian Business Leaders ForumSmiling Hospital FoundationOFF-Biennaacutele AssociationRobert Burns International FoundationTechnology in Education Foundation

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

23

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Presentations and workshops

ManyofourcolleaguesheldseriesofseminarsorworkshopsinthepreviousfinancialyearTheytaughtcoursesinmanagement and organisation and microeconomics at CorvinusUniversityofBudapestandinfinancesattheAlternativeSecondarySchoolofEconomics(AKG)amongothersOneofouradvisorswasmentoringastudentinitiativeatAKGforayear

uSchoolisamoderntrainingprogrammesupportingsecondaryschoolstudentsbyintroducingthemtotheentrepreneurialmindsetandcompetenciesuSchoolisbasedontheconceptthattheyounggenerationneedstobeprovidedwithnewskillstobesuccessfulintheircareersandinthe21stcenturylabourmarketIthastheobjectiveofshowingsecondaryschoolstudentshowtoearnalivingbydoingsomethingthattheyarereallyenthusiasticaboutTeamsweresupportedbymeetingswithamentorteamconsistingofyoungentrepreneursandemployeesofpartneringlargeenterprisesforhalfayearNineofourcolleaguesengagedasmentorsintheprogramme

Civil Mentoring Programme

InMarch2017theProBonoTeamatPwCHungarylaunchedamentoringprogrammefornon-profitorganisationsWecontinuedtheprogrammein2018enhancedbytheexperiencewegatheredlastyear

Ourexpertsheldaseriesoftrainingsinfivemodulesfornon-profitorganisationswhoseapplicationsfortheprogrammehadbeensuccessfulThetrainingsalsoprovidedtheparticipantsdevelopmentandnetworkingopportunitiesThesecondprogrammeterminatedattheendofMayfollowedbyasix-monthmentoringprogrammefortheorganisationsselectedbythepanelDuringthesesixmonthsPwCrsquosemployeesassistedtheorganisationsandprovidedthemguidanceintheireverydayoperation

InthepasttwoyearswehavebeeninvolvedinthedevelopmentofseveralorganisationsengagedineducationsuchasConnectMentorProgrammeSocialInnovationFoundationndashInDaHouseKamaszteacuterKoumlz-PontYouthOrganisationandKerekasztalTheatreEducationCentreThecontributionsoftheseorganisationstothedevelopmentofspecifictargetgroupsispresentedbrieflybelow

Konnect Mentor Programme

TheorganisationiscommittedtobuildingbridgesbetweenvarioussocialgroupsandfosteringdialoguebetweenculturesThefirstConnectprojectisamentoringprogrammewhichconnectssecondaryschoolstudentstoyoungpeoplethataresuccessfulintheirownfieldsMentorsassiststudentsforsixmonthsinfindingtheirownpathsInthemeanwhiletheyprovidetrainingstodevelopstudentsrsquoskillsandself-awarenessPwCrsquosmentoringprogrammeenabledtheorganisationtolaunchnewprojectsrationaliseitsoperationandexpanditsreach

Koumlz-Pont Youth Organisation

TheorganisationhasbeenoperatingintheNorthernGreatPlainregionsince2001IthasbeenengagedinlocalcountyregionalnationalandinternationalprojectsBysupportingthreecountystudentcouncilsintechnicalfinancialandlegalissuesithasensuredpermanentpresenceinpubliceducationinstitutions(almost250institutions)Theorganisationrunsapartnerschoolprogrammewith16participatingsecondaryschoolsandoffersSchoolCommunityServiceopportunitiesfor200-250studentsofalmost30schoolsinseveralcountiesItslong-termgoalsareestablishingaYouthCompetencyDevelopmentCentreandfoundingaschoolunderthenameKOumlZ-PontAcademyIn2017wewereawardedthetitleldquoCorporatePartneroftheYearrdquoforourmentoringprogramme

Recognition for our Civil Mentoring Programme

KOumlZ-Pont Youth Association awarded the Partner of the Year 2017 Snail Prize to PwC Hungary in recognition of the assistance they received as participants in our Civil Mentoring Programme in 2017 pwctegyunkerte

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

24

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Kerekasztal Theatre Education Centre

KerekasztalTheatreEducationCentrewasestablishedin1992asthefirsttheatregroupwithaneducationalpurposeinCentralandEasternEuropeItistheirmissiontousethetheatreexperienceformakingchildrenandyoungpeopleawareandunderstandcurrentsocialissuesTheatreplayscoveramongotherstheissuesofpowerjusticeintergenerationaldialogueanddemocracyThereare200-250theatreperformancesayearfor6000-7000spectatorsintotaland30percentoftheseperformancesaregivenfreeofchargeindisadvantagedschoolsinareaswhereculturaleventsarenotavailableinabundance

TheEducationCentreparticipatedinPwCrsquosprogrammewiththeaimofchangingtheorganisationrsquosfinancingstructureanddevelopingabusinessstrategythatensuresthatperformancesfordisadvantagedschoolsremainfreeofcharge

Social Innovation Foundation ndash InDaHouse

Wegotincontactwiththefoundationinspring2017andhavebeenco-operatingwithitsmemberseversinceWhenwefirstmetthefoundationhadbeeninagrowthstageinwhichitneededguidanceoncommunicationfundingandhumanresourcesmanagementTheyappliedwiththeinitiativeInDaHouseHungaryforourmentoringprogrammeTheinitiativewhichwaslaunchedinPerecountyBorsod-Abauacutej-Zempleacutenin2014isaimedatdevelopingasustainablemodelprogrammefordisadvantagedchildrenTheprogrammeisfocusedonorganisingregularindividualandgroup development courses as well as day-care camps in schoolholidaysforchildrenheldbyvolunteersfromtownsTheyfoundationalsooffersamentoringprogrammeforschoolchildrenwithadultvolunteerssupportingthemintheirprogressatschool

Volunteer day ndash free training for non-profit organisations

Apartfromphysicalworkthatwedoonourannualvolunteerdaywealsoprovideafreetrainingdayforrepresentativesofnon-profitorganisationsinourofficebuildingIn2017wegavepresentationsontheGeneralDataProtectionRegulationsettingupstrategicgoalschangesintaxlegislationandcommunicationtoolsfor50organisationsWehavebeenofferingthistrainingdaysince2014alsowiththeaimofcreatingspacefornetworking

Kamaszteacuter

Kamaszteacuter Alapiacutetvaacuteny is a public-interest recreational youthorganisationestablishedin2003withtheaimofengagingyouthinmeaningfulrolesandencouragingthemtoimprovethemselvesthroughcultureandeducationTheiractivitiesfocusonskillsdevelopmentpreventionandthecompensationofdisadvantagesThefoundationrsquosworkincludesimprovingtheimmediateenvironmentofyoungpeopleengagingalsotheirparentsandteachersThefoundationappliedtoPwCHungaryrsquosCivilMentoringProgrammetofurthertheirtechnicalknowledgetobeabletocarryoutsuccessfulprojectsandusetheirnewlyacquiredknowledgetocreatemoreopportunitiesforyoungpeopletheirparentsandteachers

PeacutenzSzTaacuter

PwCHungaryhassupportedthePeacutenzsztaacuter competition since 2013Theaimofthecompetitionistoevaluatetheskillsofhigh-schoolstudentsimprovetheirfinancialliteracyandtoguidethemtowardasuccessfulcareerinfinanceorbusinessOurcolleaguesassisttheorganiserswithcompilingquestionsforthecompetition

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

25

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

22 Relations with stakeholders

Our clientsMeans of communication

newsletters professional events studies social media campaigns tenders and feedback

Local communities non-profit organisationsMeans of communication

participation in forums and events collaboration in non-prot projects volunteer tasks pro bono services training

EmployeesMeans of communicationannual global people survey annual performance evaluation regular career meetings staff events internal magazine information materials newsletters

Government and regulatory bodiesMeans of communication participation in professional forums publications surveys membership in professional organisations press releases

AlumniMeans of communication

alumni club events semi-annual newsletter social media

invitations to trainings

SuppliersMeans of communication

dialogue with suppliers tenders feedback

Media and pressMeans of communication

press events press releases publications online tools background materials

Next generation potential employeesMeans of communication youth surveys participation in job fairs open days and career days and academic competitions youth projects and competitions social media campaigns and projectsk

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

26

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communities

non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Employees

Customers and clients

Former employees

Alumni

Local communi-ties non-profit organisations

Suppliers

Media and press

Government and regulatory

bodies

Next generation

potential employees

Customers and clients

Government and regulatory

bodies

Employees

Stage 1 ndash Mapping

Stage 2 ndash Prioritization

Stage 3 ndash Consultation

Our stakeholders mapping prioritising and dialogue

WeprioritisedourstakeholdergroupswiththehelpofourcorporateresponsibilityteamWemainlyfocusedonour current and prospective employees our clients and governmentandregulatorybodiesOneofthebiggestchallengestodayisfindingandretainingtalentThekeytodeliveringconsistentlyhigh-qualityservicesto

ourclientsisourpeopleLocalcommunitiesandnon-profitorganisationsalsoplayanimportantroleforourfirmaswepayspecialattentiontotheirtraininganddevelopment

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

27

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Employees CompaniesconcentrateonstakeholdergroupsthathavethegreatestimpactontheirstrategywitharenewedfocusonemployeesCorporatetalentstrategieshavealsodiversifiedinresponsetoskillsshortagesinadditiontopayandfinancialincentives continuous training strategic succession planning andshapingtheworkplaceculturearealsopartoftalentmanagementBasedontheresultsofourCEOSurveyinadditiontofinancialindicatorsnearly60ofHungarianCEOssaidthatemployeeloyaltyandpositiveemployeefeedbackwerekeysuccessmetricsEmployeemotivationsatisfactionandhavingagoodwork-lifebalancearekeytokeepingemployeesengagedPwCpaysparticularattentiontoemployeewell-beingprogrammeswhichwedescribeinmoredetailintheBenefitssectionInadditiontohighlyqualifiedstafftechnologyisalsoindispensabletosuccessHowevertheincreasing trend towards digitisation robotics automation andAIposesnewchallengestocompaniesWeaimtomeetthesechallengesbyretrainingandupskillingourpeopleandencouragethemtoacquireskillstheycanmakethebestuseofintheirwork

Next generation potential employees ForHungariancompaniesskillsshortagesareamongthegreatestchallengesPwCrsquosrecruitmentteamregularlyparticipatesinuniversitycareerfairsSomeofourcolleaguesalsoserveasguestinstructorsinvarioushighereducationalinstitutions

Digital recruitment

PwCrsquosdigitalrecruitmentwasbornoutofthechallengesposedbyarapidlychangingworldourpassionforinnovativetechnologiesandourcommitmenttosimpleandefficientsolutionsAtPwCweplacesignificantemphasisonleveragingtheadvantagesofmoderntechnologytomakeour selection procedure as quick and seamless as possible forourcandidatesWeareproudofhavingintroducedvideointerviewsinourselectionprocessforthefirsttimeinHungary

Our clientsPwChasbeenpresentintheHungarianprofessionalservicesmarketfornearlythirtyyearsDuringthistimewehavedeliveredvalue-addedprofessionalservicestothemajorityofmultinationalprivatelyownedcompaniesinHungaryInaddition to knowing our clientsrsquo business so we can better supportthemakeytooursuccessislisteningtoourclients

Inordertoprovideourservicesatthehighestpossiblelevelofqualityandtorealisepersonalisedideasaccordingtochangesintheeconomicenvironmentwestrivetodevelopmultidirectionalandeffectivecommunicationwithdomesticcompanies

Thatrsquoswhywecreateopportunitiestomeetandexchangeideaswithourclientsondiverseplatformsbusinesseventsprofessionalforumstrainingsculturalandsportseventsandpersonaldiscussions

Client acceptance and retention

PwCHungaryhasimplementedaprocesstoidentifyacceptableclientssupportedbytheproprietaryPwCInternationaldecisionsupportsystemforclientacceptanceandretention(AcceptanceandContinuancendashAampC)

Thisishowthesystemworkstheengagementteamtogetherwithindustryspecialistsandriskmanagementstaffconsiderjointlywhethertherisksassociatedwithanexistingorpotentialclientaremanageableandwhetherwewanttodobusinesswiththatclientanditsmanagement

Among the issues our experts consider during the AampC procedure are

bull thereputationofthecompanyanditsmanagementbull theeffectivenessofitsBoardbull thebackgroundandexperienceofthecompanyrsquosfinancial

reporting personnelbull anyincentivesorinclinationsformanagementto

manipulate reported resultsbull anysignificanttransactionsstructuredtoachieverevenue

recognitionbull any unusually aggressive or creative accountingbull anytransactionsthatarecomplexunusualordifficultto

evaluatebull anyestimatesthatinvolveuncertaintyorsubjectivejudgments

bull anytransactionswithrelatedpartiesthatarenotpartoftheconsolidatedgroup

bull anyindicationsthatthecompanymightbeinfinancialdifficulty

bull whetherthenecessaryexpertiseisavailabletoperformagivenengagement

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

28

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

AampCisapowerfulenablerbuttherealbackboneofourclientacceptanceandcontinuanceprocessisthesignificanttimeinvestedbyourriskmanagementteamandotherseniorpartnersAsdiscussedmorefullyintheEngagementPerformancesectioninPwCrsquosTransparencyReport2018ourriskmanagementpartnersareseniorpartnerswithstatureandindependencewhoprovidekeyinputintothedecisiontoacceptorcontinueaclientrelationship

UponacceptanceorretentionoftheclienttheresultsoftheseassessmentsareincorporatedintoourauditprocessimpactingforexamplethescopeofworkandassignmentofresourcesWedeclinetoproposeacceptorretainworkwhentherisksareconsiderednottobemanageablewhenthecompanywillnotagreeonthescopeoftheworkrequiredorthefeearrangementisotherwiseunacceptable

Client Feedback Survey

WehavebeensolicitingonlinefeedbackfromourclientsaspartofourClientFeedbackProgrammeforyearsBynowthebenefitsofusingthistoolhavebecomecleartobothinterviewersandrespondents

ThesurveyhelpsusmeasuretheoveralllevelofourclientsrsquosatisfactionwithourservicesandgivesustheopportunitytoidentifyareasthatneedfurtherimprovementThesurveyiscoordinatedbytwomembersofourMarketingCommunicationsandBusinessDevelopmentteamInthepreviousfinancialyeartheyimplementedinternalcommunicationsprocessestopromotetheprogrammeautomatecertainpartsandcommunicatetheresultsTheseeffortsplayedakeyroleinoursuccess

PwCrsquos competences according to clients

The answer can be given on a scale of 1-5 where 1 is the worst and 5 is the best value

IntheclientfeedbacksurveyweuseameasurecalledNetPromoterScore(NPS)whichshowstheloyaltyofourclientsThismetricisabrandedjointdevelopmentofFredReichheld(anAmericanbusinessstrategistfamousforhisresearchandpublicationsontheloyaltybusinessmodelandloyaltymarketing)BainampCompany(aglobalmanagementconsultingfirm)andSatmetrix(aUS-basedproviderofcustomerexperiencesoftware)ApositiveNPS(thesumisgreaterthanzero)isgoodwhileanNPSover50isexcellent

InFY2018wescoredanetNPSof53inourclientfeedbacksurvey

Organization level

Knowledge

Creativity

Communication

Business impact

Tailoring

Risk management

Relations44

464

399

457412427

426

454

PwC engagement team competencies score

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

29

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

PwCrsquos Hungarian CEO SurveyWehaveconductedtheHungarianCEOSurveysince2011basedonPwCrsquosAnnualGlobalCEOSurveywhichisnowinits22ndyearWesurveytheopinionofHungarianCEOsontheeconomicenvironmenttheirownbusinessprospectsandthedifficultiesandthreatstheyarefacing

Based on personal interviews our survey provides unique insightintothethinkingandstrategicdirectionofHungarianCEOsandenablescomparisonwiththeviewsofchiefexecutivesaroundtheworld

Intotal165CEOsfromsevenindustriestookpartinour2018survey

RecentresultsofthesurveyshoweswhileCEOsacrosstheworldareincreasinglyanxiousaboutbroadersocietalthreatsHungarianCEOsaremoreconcernedaboutproblemsintheirownmarketmostlyinconnectionwiththeiremployeesInHungarytheavailabilityofkeyskillschangingworkforcedemographicsandincreasingtaxburdenonlabourarethegreatestchallengestochiefexecutiveswhoseemmuchlesstroubledbyglobalproblems

ThepercentageofCEOssayingtheywouldliketoincreasetheirstaffnumbershasbeenover50foryearsnowThebiggestchallengehoweveriswhatHRstrategytheyshouldputintopracticetoreachthatgoalTheyrecognisethatinordertoattracttalentcompaniesneedtomaketherightvaluepropositionAsaresultmanyemployershelptheiremployeesacquiretheflexibilitytomeetfutureworkplacedemandsNinetypercentofrespondentsbelievetheyneedtostrengthensoftskills(egteamworkcommunication)intheirorganisationalongsidedigitalskills

CEOsrsquoopiniononrespondingtodisruptionshaschangedmarkedlysinceourlastsurveyWhilein2014changesinindustryregulationandcustomerbehaviourweretheleastpredictablefactorsthemajorityofrespondentsnowthinkthatchangesincoreproductiontechnologiesarethemostdisruptiveMorethanhalfoftheCEOsinthisyearrsquossurveyareconcernedaboutanincreaseinthenumberofcompetitorschangesindistributionchannelsandchangingcustomerbehaviour

Thewebsiteandthepublicationsummarizingtheresultsofthesurveyisavailablebyclickinghere httpswwwpwccomhuenceohtml

Tax Dialogue OurTaxDialogue2018conferencetookplaceinNovember2017TaxDialogueisheldannuallyatyear-endaboutexpectedtaxchangesAttheeventPwCrsquosexpertsandofficialsfromtheMinistryforNationalEconomyandtheNationalTaxandCustomsAuthoritygivepresentationsonthetaxchangesthatwilltakeeffectfromJanuary

Participantshavetheopportunitytonotonlylearnaboutkeyamendmentsbutcanalsodirectlyaskthelegislatorsquestionsaboutthechanges

11

Labour shortage emerges as top threat

More than half of Hungarian CEOs are planning to increase headcount at their company each year However they are facing labour and skills shortages 59 found it difficult to hire staff with the right digital skills and an even higher percentage reported that they had difficulties in recruiting for skilled talent

55

51

54

2018

2016

2017

8459

Respondents planning to increase headcount

Overall how easy or dif cult is it for you to recruit for digital or skilled talent

(chart shows percentage of respondents saying it is diffi cult)

Hungarian CEOs lean towards optimismPwCrsquos 7th Hungarian CEO Survey

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

30

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

Key players in our supply chainWeareputtingincreasingemphasisontheselectionofoursuppliersWestrivetodeveloplong-termrelationshipswiththemtherebyensuringthequalityoftheserviceswereceiveInthepastfewyearswehavealsoincreasedthenumberofournon-profitsuppliers

Inthe2018financialyearweattachedourupdatedTermsofBusiness(ToB)toallsuppliercontractsOurToBcontains data protection provisions and we also require our supplierstoundertaketooperateresponsiblyinlinewiththeTenPrinciplesoftheUNGlobalCompact(httpswwwunglobalcompactorgwhat-is-gcmissionprinciples)

Selecting our suppliers ndash steps taken to support the non-profit sector

As in previous years in December 2017 we organised a Christmasmarketinourofficebuildingwithcharitablefoundationsandassociationssellinggoodscreatedbydisadvantagedpeople

The following organisations participated in our Christmas market Baacuterka Alapiacutetvaacuteny Keacutezenfogva - Laacutempaacutes 92 Joumlvőt Nekik is Alapiacutetvaacuteny Keacutek Madaacuter Alapiacutetvaacuteny Őrzők Alapiacutetvaacuteny Katalin Remeacutenyi gold and silversmith

In addition we selected non-profit organisations as suppliers for several of our events

bull ldquoItrsquos about othersrdquo catering services Hungarian Food Bank Association

bull CEO Survey results presentation catering services Keacutek Madaacuter Alapiacutetvaacuteny Iacutezlelő Eacutetterem Szekszaacuterd

bull Summer Sports Day Humusz Association ndashawarenessraisingworkshopfocusingonrecyclingandreducingwaste Homoludens ndash board games and activities Messzelaacutetoacute Association ndash bike blender Hintalovon Foundation ndashldquoDigitalparentingrdquopresentation Mind the Mind ndashWorkshopoftheldquoItrsquosaboutothersrdquowinning team on mental disorders

bull Circular economy business breakfast catering services No Waste Bistro

ForseveralyearsoneofourtrustedsuppliershasbeenERFOKoumlzhasznuacuteNonprofitKftacompanythatprovidesrehabilitationemploymentservicestopeoplewithdisabilitiesAfterahistoryofsuccessfulcooperationweorderedthewaterproofbagsfromthemforwinnersofourSportsDaycompetition

Cooperating trade organisations

Due to our consulting work we are in contact and engage indialoguewithmanycommunitygroupsprofessionalorganisationsnon-profitandregulatorybodies

We cooperate with or are members of the following organisations American Chamber of CommerceAssociation of Hungarian Automotive Component ManufacturersAssociation of Japanese Enterprises in HungaryBritish Chamber of CommerceBudapest Chamber of Commerce and IndustryBusiness Council for Sustainable Development in HungaryCertified Information Systems AuditorCivil ImpactCivil SupportConfederation of Hungarian Employers and IndustrialistsDeutscher Wirtschaftsclub Ungarn Deutsch-Ungarische Industrie- und HandelskammerHungarian Association of Consulting Engineers and ArchitectsHungarian Automotive Industry Association (MAGE)Hungarian Business Leadersrsquo ForumHungarian Chamber of AuditorsHungarian Donorsrsquo ForumHungarian Electromobility AssociationHungarian Hotel and Restaurant AssociationHungarian Private Equity and Venture Capital Association Hungarian Public Procurement Advisorsrsquo AssociationHungarian Service amp Outsourcing AssociationICT Association of Hungary (IVSZ) Industry 40 National Technology PlatformIrish-Hungarian Business CircleISCJoint Venture AssociationNeSsT HungaryProject Management InstituteVolunteering Hungary ndash Centre of Social Innovation (OumlKA)Wirtschaftspruumlferkammer (WPK)

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

31

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible partnership

23 Awards and recognition

PwCachieved4thplaceinUniversumrsquosrankingofEuropersquosMostAttractiveEmployersin2017Morethan198500business students in Europersquos 12 largest economies took UniversumrsquosTalentSurveyandweighedinonwhatcompaniestheyfindmostattractive

PwCranked8thontheBrandFinanceGlobal500listofthestrongestandmostvaluablebrandsworldwide

Universum Worldrsquos Most Attractive

Employer 2017

4th place

The survey is conducted each year among business and

engineeringIT students of top higher educational institutions in the worldrsquos 12 largest economies

(by GDP) Universumrsquos Talent Survey ranked the most attractive employers based on responses

from more than 24000 participants

Brand Finance Index 2017

The Worldrsquos 10 Most Powerful Brand

8th placeFirst among the Big Four

A ranking of the most valuable brands in the world Each brand

has been accorded a brand rating a benchmark study of the

strength risk and future potential of a brand relative to its

competitor set as well as a Brand Value a summary measure of the

financial strength of the brand

Business Council for Sustainable Development in Hungary (BCSDH)

TheBusinessCouncilforSustainableDevelopmentinHungary(BCSDH)istheHungarianpartnerorganisationoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)Establishedin1992Swiss-basedWBCSDisaglobalCEO-ledorganisationofover200leadingbusinessesinmorethan70countriesworkingtogethertoacceleratethetransitiontoasustainableworld

ThemissionofBCSDHungaryistopromotesustainabledevelopmentamongtheirmembersandotheractorsoftheHungarianeconomythusgeneratingnewandinnovativethinkingforimprovingtheircompetitivenesswhichshouldeventuallycontributetothesustainabledevelopmentoftheeconomytothequalityoflifeandthepreservationofenvironmentalandnaturalresources

What motivated us to join BCSDH

Improving and presenting our sustainable business practices andcorporateCRprogrammesknowledgesharingandbuildingrelationshipsndashourfirmisrepresentedintheorganisationrsquosmeetingsbyAndreaMajorPartnerInJune2018wesuccessfullyorganisedajointeventoncirculareconomyVisitourwebsitetofindoutmore

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

32

Responsible operation 3

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

33

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

31 Innovative solutions in our daily operations

At PwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametime providing reliable services our clients can depend on in theirday-to-dayoperationsWealsoaimtoadoptaforward-lookingandsustainableapproachinconductingourownoperationsandchoosingourprojectsatourlocaloffices

Innovation Jam ndash Opening the way to innovation

We devoted the April 21 working Saturday to innovation and held our first Innovation Jam Participants had the opportunity to choose from a variety of creative group activities ndash for example a coding workshop for beginners and a design thinking workshop where attendees mastered the basics of innovative thinking

In our interactive tech tour our colleagues field tested such technologies as 3D printing VR headsets mind-controlled table football and drones These innovative technologies were demonstrated by project teams in our 3rd floor meeting space

Regional innovation leader Tamaacutes Lőcsei said about the event

I think the Innovation Jam was a success with more than 200 participants which demonstrates our openness to innovation Based on the feedback we

received there is a growing need to present our solutions

in-house so we will need to place even more emphasis on cooperation and knowledge sharingrdquo

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

34

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Smart city ndash We also support sustainability indirectly through our workWhenchoosingourprojectswefocusonvalue-creationbutalsoconsideritsimpactsTheEuropeanInvestmentBankhasaskedourfirmtoprepareareportontheldquosmartcitymaturityrdquoofthecitiesofV4countriesInHungaryDebrecenandKaposvaacuterhavebeenselectedaspilotcitiesWeanalysedindetailthestateofdevelopmentofvariousaspectsofsmartcitiessmartgovernanceITenergyandfacilitymanagement transport water and waste management social infrastructurefundingandimplementationmodelsWehopethattheprojectwillgreatlyimprovefundingopportunitiesforsmartprojectsintheV4countriesasthelackoffundingiscurrentlyamajorsetbackinsmartcitydevelopment

Smart Tax Solutions ndash Simple automated answers to tax-related questionsIn Hungary we strive to become a key player in automated taxsolutionsWehavecreatedanITtooltofacilitateonlinecommunicationbetweeninvoicingsystemsandthetaxauthorityenablingbusinessestocomplywiththenewregulationsmorequicklyandefficientlyandsavethecostofinternaldevelopment

Robotic Process AutomationDigitisationisalsomakingstridesintheauditprofessionAtPwC we strive to serve our clients using innovative state-of-the-arttoolsandmethodologieswhileatthesametimeprovidingreliableservicesourclientscandependonintheirday-to-dayoperationsWecontinuallyseekopportunitieswheretechnologycanincreasethequalityandeffectivenessofourservicesbyautomatingrepetitivetasksthatrequireexcessivemanuallabourusingvarioustoolssuchasroboticprocessautomation

Connect

OurauditorskeepclosecontactwithourclientsduringtheirworkTosupportthiswehaveintroducedConnectasystemthatorganisesincomingandoutgoingmailandsendsalertsofmandatorynoticesandinformationrequestsIncomingdatafromclientsarealsomadeavailablethroughConnectinanorganisedfashionAsanextrafeatureautomatedmailtemplatesarealsoavailablewhicharepopulatedwithkeydatausingExcelmacros

Automated resource booking

AllocatingresourcestoamultitudeofprojectscanbeadauntingprocessndashthatrsquoswhywehavecolleaguesdedicatedtothistaskRecognisingboththecomplexnatureofthistaskandtheopportunityforautomationwehavecreatedanalgorithmtosupportthistaskwhichisnowbeingimplementedAfterassessingresourceneedsanoptimisationenginecalculatestheidealstaffallocationbasedongradepreviousassignmentsandotherdataobtainedfromTalentLinkandthenresourcesarebookedbysoftwarebots

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

35

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

32 Environmental and operational awareness

Modern environmentally friendly offices

PwChasspentitsfourthyearintheEiffelPalaceTheEiffelPalaceisthefirstofficedevelopmentprojectinEast-CentralEuropetomeetthestrictrequirementsofboththeBREEAMandLEEDenvironmentalstandardswithexcellentresultsInthepastyeartheelectricityproducedbysolarpanelsinstalledonourofficebuildingwasusedincommonareas

Green features of the building

bull energyefficiencyclassldquoArdquobull theroofaccommodates120solarpanelssufficienttoproduce50000kWhaofelectricity

bull thebuildingisheatedandcooledusinganair-sourceheatpump system

bull theCO2emissionofthebuildingisreducedbymorethan30throughtheuseoflocallowandzerocarbontechnology(VRVsystemsolarenergywaterheatingPVsystem)

bull high-efficiencylightingsystemsarecontrolledbysunlightand motion sensors

bull rainwaterutilisationsystemwithastoragecapacityof200 m3rainwaterisusedforflushingtoiletsandwateringplants

bull externalfacadelightingwithaLEDsourceandBMScontrol

bull elevatorswithhighenergyefficiencybull morethan60m2ofplantwallinthelobbywateredwith

rainwaterbull 100bicyclestandsand8showersavailabletocyclistsbull good accessibility by public transportbull theproximityofbicycleroutesprovidinganalternativemeansoftransport

bull photovoltaicpanelsprovidingelectricityforelectricandhybridvehiclechargers

bull theuseoffaucetaeratorstoconservewaterbull energy-efficientcoolingheatingsystembull automaticlightingcontrolusingpresenceandmotion

detectorsbull localseparatedwastecollection(inboththeimplementationandoperationalphases)

bull environmentally responsible waste managementbull extensivegreenroofonmultiplelevelsbull chargersforelectricandhybridcarsbull waterlesscarwashusinglittleornowater

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

36

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Headcount

2018

7762017

661

Our operation by numbers

(Irodahaacutezunk uumlzemeteteacutese nem hasznaacutel energia forraacuteskeacutent foumlldgaacutezat)

Electronic waste

FY 2018

072 t 09 kgcapita

FY 2017 092 t

Municipal wate

FY 2018

1056 m3 13 m3capita

Paper waste

FY 2018

45 t 57 kgcapita

FY 2017 48 t

Total energy consumption

FY 2018

666 666 kWh859 kWhcapita

FY 2017 755 018 kWh

Recycled wastePlastic

FY 2018

57 m3

Recycled wastePaper

FY 2018

343 m3 044m3fő

Paper use

AsserviceprovidersweimpactourenvironmentwithouroperationsratherthanwithtangibleproductsWhatwecreateisinformationwhichinmanycasesisstillpaper-basedDuetooursignificantpaperusage(about1500financialstatementsannually)westrivetoofferouremployeesalternativesolutionsinordertoavoidunnecessaryprintingForexampleweurgeouremployeestoonlyprintfinalversionsofmaterialsanduserecycledpapertimestamptheirdigitaldocumentsandusetheprojectionscreensinmeetingroomsinsteadofprintingoutmaterialsWecentrallyconfigureddefaultprintingoptionsonlaptopstotwo-sidedblackandwhiteprintingWepresenttheresultsofourcampaigntoreducepaperuseindetailintheldquoGreenofficetaskforcerdquosectionbelow

569

boxes2 847

pack

14235 m sheets

71tonnes

= = =

2320 sheetcapita

Ofce space

8325 m2We use

60of the total ofce space

Our paper use

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

37

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Electric cars (2)

25 662 kmFY 2017

30 530 km

Petrol-powered

430 217 kmFY 2017

305 378 km

Diesel

521 207 kmFY 2017

446 407 km

Short-haul

(less than 460 km)

Medium-haul

(between 460 km and 3700 km)

Long-haul

(more than 3700 km)

14 697 passenger miles

584 592 passenger miles

813 977 passenger miles

FY 2017 9 954 passenger miles

FY 2017 500 000 passenger miles

FY 2017 1 225 329 passenger miles

Daily travel with electric cars

OurfirmownstwoNissanLeafall-electriccarswhichdemonstrate our commitment to environmental consciousnessandsustainabilityWeusethesecarsforcourierservicesWherepossibleourstaffalsousetheminsteadoftaxis or rented cars to visit clients in Budapest reducing our environmentalimpactonthecityThecarsareverypopularamongourcolleaguesbecausetheyarenotonlypracticalbutsportastrikinglycolourfuldesignaswell

Road transport in numbers

Usagefiguresforfirm-ownedandleasedvehicles

Air transport in numbers

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

38

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Green office task forceOurldquogreenofficerdquotaskforcemeetseverymonthtodiscussideasonhowtoincorporateenvironmentalconsciousnessintoourday-to-dayoperationsandoff-workactivitiesWearereachingouttoasmanycolleaguesaspossiblefromdifferentunitswithinourfirmsowecanconsiderdifferentissuesandneedswhendevelopingourprojectsThisyearourawareness-raisingcampaignfocussedonreducingplasticwasteinourofficewhichwepopularisedthroughinternalcommunicationchannels(dailyNapindiacutetoacute newsletters articlesinourin-housemagazineandposters)andmobilisedforrecyclingIncooperationwithoureventsteamweusedrecycled cups and biodegradable cutlery and plates in our cateredeventsWealsogaveawaycanvastotebagswithalogoforeco-friendlyshopping

Outdoor activities ndash Renovating huts in the Boumlrzsoumlny mountains

InMayagroupofcolleaguestogetherwithfriendsandfamilyhelpedrenovatetheresearchstationoftheErdőmentőkFoundationinKismarosOncetherenovationiscompletedErdőmentőkwillusethehuttoorganiseprogrammesforhandicappedchildren

Irsquom glad that the company I work for is housed in an office building that

uses rain water solar energy and offers facilities for electric and hybrid vehicles As soon as I heard there is a team dedicated to promoting environmental awareness as

part of our corporate culture I decided to join For many

years I have been mindful of reducing the burden I place on my

environment To members of our green task force this is self-evident Individual ideas and best practices are adopted by other team members showing a positive example to our desk mates and other people we meet in and outside the office

Zsoacutefia Dali e-learning specialist PwCrsquos Academy

Globally we reduced our fuel consumption by 4 (tCO2e)

2018592293 tCO2e2017618845 tCO2e

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

39

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

33 Our presence in Hungary

PwCisoneoftheworldrsquosleadingbusinessconsultancyfirmsWehelpourclientsachievetheirgoalsthroughourindustry-specificprofessionalservices

InHungaryinourofficesinBudapestandGyőr776employeesassistourclientsinthreemainserviceareasassurancetaxandlegalandadvisoryservicesandinmanyotherspecialties

Wehavegrowntobecomealeadingauditandbusinessadvisoryfirmbecausewehavebeengatheringexperienceeversincewewereestablishedin1854WeusethisexperienceandcombineitwithourlocalexpertiseThesourceofthisexperienceandexpertiseisourpeopleonwhomourpresentandfuturedependsandsotheyandourfutureemployeesrepresentthefocustopicsamongourkeyissues

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

40

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Advisory

Management consulting servicesbull Strategy amp Operationbull CRMampCustomerTechnologiesbull Projectprogramandinvestment

managementbull Business restructuringbull Innovation management

Financial and transaction advisory bull Valuation amp Economicsbull Fraud prevention and detectionbull Core transaction servicesbull Business Recovery Servicesbull Infrastructureconsultingbull MampAandfinancingadvisory

servicesbull Property

Technology consultingbull IT deployment and systems

integration bull CIOagendaprojectlifecycle

managementbull Digitalarchitecturebull Enterprise Analyticsbull Digital business

Our services

Assurance services

Core assurance services

Value-added assurance services

Risk Assurance Services (RAS) bull Internal audit servicesbull Risk management governance and

compliancebull Technologybull Audit support

Accounting Advisory and PwCrsquos Academybull Capital Markets and Accounting

Advisory Services (CMAAS)bull Treasurybull Actuarial servicesbull PwCrsquos Academy

Tax and legal services

Tax Controversy amp Dispute Resolution (TCDR)

Tax Policy

State Aid and Tax Incentives

Tax Reporting amp Strategybull Consulting on tax and accounting technology

bull Tax Strategy amp Operation bull Accounting reviewbull Accounting Compliance Services bull Payroll bull Payroll reviewbull Taxreturnsdeferredtax

People and Organisationbull Global Mobilitybull Global visa solutionsbull Personal income tax and social security

contributions payable by employersbull Private clientsbull Marketing campaigns and corporate

eventsbull Changemanagementand

communicationbull Analyses and surveys bull HRorganisationandfunctionsbull Strategic HRMbull Organisational culture bull Remunerationandbenefits

Legal servicesbull Company law corporate restructuring

investmentsbull Private clientsbull Legal disputes and tax litigationbull Mergers and acquisitions (MampA) bull Banking amp Finance Lawbull Public Lawbull Energybull Corporate criminal lawbull Competition law and consumer protectionbull Propertybull Intellectual Property IT Data Protection and TechnologyTelecommunicationsampMedia

bull Labour law

Indirect Taxbull Value Added Tax (VAT)bull Smart Tax ndash Automated tax solutions bull Customs and international tradebull Excisedutyenvironmentalproductfeeandpublichealthproducttax

Corporate tax bull Mergers amp acquisitionsbull General corporate tax consulting amp restructuringstructuringforprivateequityandstrategic investors including private company services

bull RampD-related tax allowancesbull Taxallowanceforsupportprovidedforpopularteamsportsandperformingarts

bull Development tax incentivebull Taxincentiveforinvestmentprojectsrelatedtoenergyefficiency

bull Transferpricing

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

41

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCrsquos history

Samuel Lowell Price sets up business in London

William Cooper establishes his own practice in London which seven years later becomes Cooper Brothers

Lybrand Ross Bros amp Montgomery Cooper Brothers amp Co McDonald and Currie and Co (Canada) merge to form Coopers amp Lybrand

Robert H Montgomery William M Lybrand Adam A Ross Jr and his brother T Edward Ross form Lybrand Ross Brothers and Montgomery

Price Holyland and Waterhouse join forces in partnership

The companyrsquos name changes to Price Waterhouse amp Co

Worldwide merger of Price Waterhouse and Coopers amp Lybrand creates PricewaterhouseCoopers

Price Waterhouse opens its first office in Hungary Coopers and Lybrand Hungary is formed

PwC opens its first regional office in Győr

1849

1854

1865 1865

1874

1898

1898

1957

1957

1982

1989

1998

2010

2011

Price Waterhouse world firm is formed

As part of our rebranding efforts we changed our name from PricewaterhouseCoopers to PwC

Legal entities ownership structure

PricewaterhouseCoopersAuditingLtd(ldquoPwCAuditingLtdrdquo)wasestablishedasalimitedliability company and registered in Hungary (address1055BudapestBajcsy-Zsilinszkyuacutet78companyregistrationnumber0109063022)

Thecompanyrsquostaxandadvisorybusinesslinesdemergedeffective1July2011intoanewentitynamedPricewaterhouseCoopersHungaryLtd(ldquoPwCHungaryLtdrdquo)ThesharesandvotingrightsoftheCompanyasof30June2018wereheldby

bull PricewaterhouseCoopersSpolkazoo(1175ownershipregisteredinPoland)

bull PricewaterhouseCoopersEasternEuropeBV(15ownershipregisteredintheNetherlands)

bull PricewaterhouseCoopersCEEFirmServicessro(8675ownershipregistered in Slovakia)

ThemajorityofthevotingrightsareheldbyPricewaterhouseCoopersSpolkazooanauditcompanyincompliancewiththeprovisionsofHungarianlawregardingauditcompanies

SuchentitiesareultimatelyownedbythepartnersofPricewaterhouseCoopersinourCentralandEasternEuropeanfirmsPwCLtdcooperateswithotherCentralandEasternEuropeanmemberfirmstoprovideservices to local and mutual international clientsoperatinginourregion

ThiscooperationisorganisedthrougharegionalmanagementteamwhichinadditiontoensuringtheadherenceoftheseregionalfirmstothepoliciesandproceduresofPwCInternationalLimited(PwCIL)enablesresourcesharingtheenforcementofriskmanagementpoliciesandqualitystandards

Eachnationalmemberfirmalsohasitsown management structure in place inaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgiveseachmemberfirmtheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketItalsoreflectsthefactthatregulatoryauthoritiesinmostcountriesgranttherighttopractiseasauditorstonationallybasedfirmsinwhichlocallyqualifiedprofessionalauditors(orintheEuropeanUnionacombinationofauditorsandorEUauditfirms)haveatleastamajorityownershipandcontrol

2012 The CEO Survey is launched in Hungary

2014

2018

PwC moves into the Eiffel Palace

2017 The number of staff exceeds 800

Tamaacutes Lőcsei takes over as PwC Hungaryrsquos CEO His predecessor Nick Koacutes becomes CEO for the CEE region from 1 July

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

42

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

GovernancePwCHungaryhasitsownlocalmanagementstructureinplaceinaccordancewithrelevantlegalandoperationalrequirementsThislegalstructureandnetworkarrangementgivesittheflexibilityandautonomytorespondquicklyandeffectivelytoconditionsinitslocalmarketWeareresponsibleforcoordinatingourownmanagementprocessesincompliancewithPwCrsquospoliciesandregulationsincludingthewayinwhichweprovidequalityservicestoourclientsWithintheCentralandEasternEuropeangroupingofPwCmemberfirmswhichincludes29nationalterritoriesamatrixsystemofmanagementisoperatedThepartnerselectaChiefExecutiveeveryfouryearswhoappointsaManagementBoardcomprisingofTerritoryChiefExecutivesandOperationalLeadersfromfunctionalandbusinesslinesThisBoardisresponsibleforsettingbroadbusinessobjectivesandensuringcompliancewithPwCInternationalrsquospolicies

Acrossgeographicallinesthepolicyandbusinessobjectivesofeachprincipalbusinessline(assurancetaxlegalandadvisory)aresetbythebusinesslinemanagementteamOversightoftheRegionalManagementBoardonbehalfofthepartnersiscarriedoutbyanelectedregionalPartnersrsquoCouncilwhichapproveskeypoliciesanddecisionsthataffectpartnersinclosecooperationwiththeManagementBoardTheyareresponsibleformakingstrategicdecisionsanddealingwithriskmanagementissues

PwCKftismanagedbythemanagingdirectorsappointedbytheshareholdersThemanagingdirectorsasof30June2018are

Nick Koacutes FCA Aacuterpaacuted Balaacutezs ACCA registered statutory auditor Eacuteva Barsichiefexecutive

Athree-memberSupervisoryBoardwasalsoelectedconsistingofthefollowingmembers Dr Laacuteszloacute Reacuteti Paul Grocott and Todd Bradshaw

TheCompanyrsquossupremebodyistheShareholdersrsquoMeetingwhichisconvenedatleastonceannually

PwC Hungaryrsquos organisational structure between 1 July 2017 and 30 June 2018

Nick KoacutesCountry Managing Partner

Legal services

State Aid amp Incentives

Indirect tax related advisory services

Personal income tax and social security consulting

Transfer pricing

Bookkeeping and payroll services

Reviews of the efficiency of payroll accounting

Foreign VAT refund applications

Corporate tax related advisory services

Smart Tax Solutions

Tamaacutes LőcseiTax and legal services

Management consulting services

Deals

Technology consulting

Aacutedaacutem OsztovitsAdvisory

Capital Markets and Accounting Advisory Services

PwCrsquos Academy

Risk Assurance Services

Audit Services

Value-added assurance services

Aacuterpaacuted BalaacutezsAudit

Internal firm services

In Hungary the members of the Territory Leadership Team (TLT) are

theCountryManagingPartnertheleadpartnersofTaxampLegalServicesAssuranceandAdvisorytheheadofHRandtheChiefFinancialOfficer

TheTLTisresponsibleforimplementingglobalandregionalpoliciesandstrategyandforthedirectionandmanagementofourfirmatthelocallevel

TLTmembersrsquoperformanceisevaluatedeachyearunderthesupervisionofthePartnerCouncil(whichcarriesoutoversightofPwCCEE)whichensuresindependence

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

43

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

34 Our global network ndash PwC International

PricewaterhouseCoopersInternationalLimited(ldquoPwCInternationalrdquo)isoneoftheworldrsquoslargestnetworksofprofessionalservicesfirmsPwCrsquos250000employeeshelpourclientsandstakeholdersin721officesin158countrieswithindustry-specificaudittaxlegalandadvisoryservices

PwCisaglobalnetworkofseparatefirmsoperatinglocallyincountriesaroundtheworld

PwCfirmsaremembersofPricewaterhouseCoopersInternationalLimitedandhavetherighttousethePricewaterhouseCoopersnameAsmembersofthePwCnetworkPwCfirmsshareknowledgeskillsandresourcesThismembershipfacilitatesPwCfirmstoworktogethertoprovidehigh-qualityservicesonaglobalscaletointernationalandlocalclientswhileretainingtheadvantagesofbeinglocalbusinessesndash including being knowledgeable about local laws regulations standardsandpractices

BeingamemberofthePwCnetworkmeansfirmsalsoagreetoabidebycertaincommonpoliciesandmaintainthestandardsofthePwCnetworkEachfirmengagesinqualitycontrolandcompliancemonitoringactivitiescoveringtheprovisionofservicesethicsandbusinessconductandthecompliancewithspecificstrictstandardsforindependencemonitoringandprotection

North Central and South America

71222employees

Middle East and Africa

15090 employees

Western Europe

75151 employees Central and

Eastern Europe

11538 employees

Asia

68963employees

Australasia and the Pacific

8966 employees

Budapest and Győr

776employees

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

44

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

PwCILisaUKprivatecompanylimitedbyguaranteePwCILactsasacoordinatingentityforPwCfirmsanddoesnotpractiseaccountancyorprovideservicestoclientsPwCIL works to develop and implement policies and initiatives to create a common and coordinatedapproachforPwCfirmsinkeyareassuchasstrategybrandandriskandqualityPwCfirmsusethePwCnameanddrawontheresourcesandmethodologiesofthePwCnetworkInreturnPwCfirmsarerequiredtocomplywithcommonpoliciesandthestandardsofthePwCnetwork

APwCfirmofPwCILcannotactasagentofPwCILoranyotherPwCfirmanditisonlyliableforitsownactsoromissionsandnotthoseofPwCILoranyotherPwCfirmPwCILhasnorightorabilitytocontrolanymemberfirmrsquosexerciseofprofessionaljudgement The governance bodies of PwCIL are

bull GlobalBoardwhichisresponsibleforthegovernanceofPwCILtheoversightoftheNetworkLeadershipTeamandtheapprovalofNetworkStandards TheBoarddoesnothaveanexternalroleBoardmembersareelectedbypartnersfromallPwCfirmsaroundtheworldeveryfouryears

bull NetworkLeadershipTeamwhichisresponsibleforsettingtheoverallstrategyforthePwCnetworkandthestandardstowhichthePwCfirmsagreetoadhere

bull StrategyCouncilwhichismadeupoftheleadersofthelargestPwCfirmsofthenetworkagreesthestrategicdirectionoftheNetworkandfacilitatesalignmentfortheexecutionofstrategy

bull NetworkExecutiveTeamisappointedbyandreportstotheNetworkLeadershipTeamItsmembersareresponsibleforleadingteamsdrawnfromNetworkfirmstocoordinateactivitiesacrossallareasofourbusiness

bull OlgaGrygier-Siddonsfrom1stJuly2018NickKoacutesndashtheChiefExecutiveofPwCCEEisamemberoftheStrategyCouncilandmaintainstherelationshipswiththeNetworkLeadershipTeam

35 Economic indicators

18 167 695 t HUF

12 093 073 t HUF

22 257 924 t HUF

16 543 948 t HUF

6 916 722 t HUF

7 367 618 t HUF

17 063 319 t HUF

14 229 752 t HUF

19 786 000 t HUF

14 887 224 t HUF

6 243 894 t HUF

8 503 496 t HUFFY 2017

FY 2018

Employeersquos wages and benets

Taxes

Operating expenses

Income

Balance sheet total

Net sales

776 661

Number of employees

Theseareourkeyeconomicindicatorsforthepasttwoyears

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

45

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Promoting lasting and sustainable economic growth ndash Our economic role

AtPwCwecombineknowledgefrom158countrieswithlocalexpertiseOurpurposeworldwideistocreatevalueforourclientsbydeliveringthehighestqualityoutcomesAsaprofessionalservicesfirmitisveryimportantforusthatwetakeanactiveroleandbecomeopinionleadersintheHungarianbusinesscommunityWeareproudofsharingourknowledgenotonlywithourclientstosolvetheirproblemsbutalsowithawiderpublicatvariouseventsinblogentriesandinotherpublications

Publications and surveys TheaimofPwCHungaryrsquosexpertsistosharevaluableinformationwithourclientsandstakeholdersthatsupportthemintheirbusinessdecisionsOurmarketanalysesandreportshighlightcurrentbusinesstrendskeymarketdynamicsandtheeffectsoflegalregulationsinHungaryandthroughouttheregionOurpublicationshelpourclientsunderstand market developments and provide up-to-date informationonthemostimportantchangesintheirindustryIn addition to our reports and newsletters our experts also publishblogarticlesabouttopicalissuesconcerningeconomicgrowthanddevelopmentCheckoutPwCHungaryrsquosblogatwwwpwccomhuhublog

EVP (Employer Value Proposition) survey

ItisthesharedresponsibilityofgovernmentalstakeholdersandcompaniestoensurethefullandefficientemploymentofyoungjobseekersTothatenditiscrucialformarketplayerstobeawareofthepreferencesofthenextgenerationofemployeesforgovernmentstounderstandwhatmakesitworthwhileforyoungpeopletoremaininHungaryandforcompaniestoprovidebenefitsandflexibleworkoptionsthatarepopularwithyoungworkers

InthesurveyPwCHungaryasked13000highschoolerscollegestudentsandrecentgraduatesabouttheirjobpreferencesTheaimofthesurveywastoexaminethejobpreferencesoffutureemployeesAskedtorankjobcharacteristicsinorderofimportanceprospectivehiresputflexibleworkoptionsagoodrapportwithcolleaguesandbasesalaryatthetopofthelistInthesurveywealsoaskedparticipantsaboutwhatmotivatesthemtoseekemploymentabroadandwhatfactorswouldmakethemstayinHungaryTheanswertobothquestionswassalaryandbenefitsandcareerdevelopmentHoweverastrongargumentformovingabroadisthatinadditiontomoreattractivefinancialprospectstherearebetterchancesforprofessionaldevelopmentAninterestingfindingwasthatvisionandstrategyarenotatoppriorityratherrespondentsvalueopencommunicationSurveyresultsalsoshowthattheautomotiveindustryisoneofthemostattractiveareasforyoungworkers

Automotive Supplier Survey

EchoingthefindingsofmanyothersurveysPwCrsquosHungarianAutomotive Supplier Survey 2018 concludedthatthenumberonerisktogrowthprospectsisthelackofqualifiedlabour78oftherespondentsmarkeditasathreat

Inrecentyearsthedemandforqualifiedprofessionalshasincreasedperceptiblyndashathirdofthecompaniessurveyedhave

alreadybeenforcedtorejectorderscitingalabourshortageInresponsetothissituation80ofthecompaniessurveyedoffermoreappealingbenefitswhile64aretryingtowinoveremployeeswithtrainingcoursesAlmosthalfoftherespondentsemployforeignworkersbecausetheycannothiretherequiredstafffromtheHungarianlabourmarketSuppliers are more and more interested in robotisation in jobswhereworkersperforminglowvalue-addedworkcanbereplacedbymachines

Keyautomotivetrendsofthefutureincludethechangeinmobilitytheincreasingpopularityofcarsharingchangesinindividualmobilityandtheavailabilityofmobilitytomorepersons

Magyarorszaacutegi Autoacuteipari Beszaacutelliacutetoacutei Felmeacutereacutes 2018

wwwpwccomhu

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

46

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

Circular economy

PwC is committed to sustainable businesspracticesInaccordancewiththatapproachourcolleagues explored in a recent reporttheopportunitiesthecirculareconomyhastoofferforbusinessesInthereportweexaminedmorethan70domestic and international case studies and provided an outlookonIndustry40InMayweorganisedafreebusiness

breakfastwhereweshowcasedsomeofthesolutionsoutlinedinthereportPresentersincludedtherepresentativeoftheBusinessCouncilforSustainableDevelopmentinHungaryonusingcircularmodelsanexpertfromHeinekenonenergyefficiencythecreatorofPlatioontheirmodularsolarpavingsystemandthefoundersofBeeRidesCarSharingonanewconceptforcarsharing

How much is your data worth

Attheheartofthedigitaltransformationthathaspermeatedeveryaspectofourlivesisreal-timedataandanalyticsOurreportprovidesguidanceonthisnewemergingmarketTotapthemarketrsquos potential companies need to adopt a structured approachfindasuitablepointofentryandselectanareatheywanttofocusonWhilethisapproachdependstoalargeextentonthe

industry concerned as digitisation progresses it will become lessclearwhowillcomeintopossessionofthemostvaluabledata

Data is becoming more and more important and we still havealongwaytogountilwehavefullyexploitedourdatacapabilitiesAsaresulteffectivestewardshipofdataassetshasbecomeacornerstoneofinnovationandcorporatestrategyExecutivesarefocussingtheirattentionontheirdataassetsandsourcesoffundingarealsoensuredOneneedonlythinkofthemassiveITsystemsoforganisationsthatstoreandmanagehugeamountsof(structuredandnon-structured)dataeveryday

Keymarketplayersofthedigitalworldwhosebusinessmodels are based on data services include Facebook LinkedInGoogleandAmazoninnovatorsthatshowthewayforwardOurreportdemonstrateshowdatacanbecomeatreasuredassetandhowitcangiverisetonewmarketsandservicesandevenforgebusinessalliances

Presentations

KnowledgesharingisofparticularimportancetoPwCOur experts gave presentations as guest speakers at several professionaleventsandparticipatedinpaneldiscussionsinthe2018financialyearaswellTheGeneralDataProtectionRegulation(GDPR)recentlycameintoforceacrosstheEUOur colleagues gave presentations at several important events onitslegalandITimplicationsWealsoorganisedasuccessfulconferenceseriesonthissubject

ThelackofskilledlabourhasbecomemoreandmorepressinginrecentyearsachallengefacedbymostHungarianbusinessesOurexpertssharedtheirexperienceonnewchallengesinthelabourmarketmodernHRtechnologiesandtheexpectationsoftheworkforceofthefutureAstand-outeventistheconferenceoncompetitiveeducationorganisedbyAmChamwhichwehavesupportedforyearsTheeventaimstoprovideaplatformtostakeholders(decisionmakersteachersparentsstudentsandbusinessrepresentatives)todiscusslabourmarketexpectationsoftheeducational system areas to be developed and opportunities forcooperationAfurtheraimistofacilitatedialoguebetweenbusinessesandgovernmentalactorsthatwouldincreaseHungaryrsquoslong-termlabourmarketcompetitivenessPwCisasupporteroftheNationalTaxConsultationtheuniquetaxconferencestartedbytheHungariantaxauthorityThetwo-dayeventwhichconsistedofplenaryandbreakoutsessionsgaveattendeesanoverviewofexpectedchangesintaxandcustomsregulationsandanopportunitytoexchangeideasandsuggestionsinroundtablediscussions

PwC Hungary is committed to building a circular future ndash we

approach both our own business processes and client engagements with a sustainability mindsetrdquo

Aacutedaacutem Osztovits Partner Advisory service line leader

Mennyit eacuter az adat Uacutej szolgaacuteltataacutesok eacutes beveacuteteli lehetőseacutegek nyomaacuteban

wwwpwccomhu

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

47

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

36 Quality and risk management 37 Human rights

AsamemberfirmofPwCInternationalweareobligedtoabidebythecommonriskandqualitystandardsapprovedbytheorganisationThesestandardsaresupplementedbylocallegalrequirementsandtheprofessionalqualitystandardsoftheHungarianChamberofAuditorsandwhereapplicablethirdcountryauditqualitystandardsifrequiredtoreportonanentityfromsuchacountry

Our detailed quality control procedures are set out in our PwCAuditGuideandinthePwCRiskManagementpoliciesandguidanceThefollowingsummarisesthekeypoliciesattitudesbehavioursandactionswhichensurethatwemaintainaconsistentlyhighlevelofauditquality

Nohumanrightsviolationswerereportedduringtheperiodconcerned

WebelieveitrsquosourresponsibilitytorespectandupholdthehumanrightsofourpeopleandanyotherindividualsweareincontactwithWeseektointegratehumanrightsintoourexistingbusinesspracticesinaccordancewithourhumanrightspolicy

PwCrsquosGlobalHumanRightsStatementisavailableonourwebsite httpwwwpwccomgxenabout-pwcpwc-human-rights-policypdf

LocalmanagementdoesnotformallymeetonaregularbasistoanalysecurrenteconomicsocietalorenvironmentalrisksSuchanalysiswouldonlytakeplaceinspecificcases

PwC prescribes mandatory e-learning courses aimed at educatingstaffmembersaboutriskmanagementanti-corruptionandanti-moneylaunderingissues

Those criteria are

bull Managing Risk with Integrity 2018 ndash online course to be completedineachfinancialyear

bull Combatting Corruption and Money Launderingndashthiscoursemustbecompletedbyallnewjoinersbythespecifieddeadline

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

48

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

38 Ethical requirements

WetakeprideinthefactthatourservicesaddvaluebyhelpingtoimprovetransparencytrustandconsistencyofbusinessprocessesInordertosucceedwemustgrowanddevelopbothasindividualsandbusinessOurcorevaluesofExcellenceTeamworkandLeadershiphelpustoachievethisgrowthWeconductourbusinesswithintheframeworkofapplicableprofessionalstandardslawsandregulationstogetherwithPwCpoliciesandstandardsThisobjectiveincorporatesinteraliafullcompliancewiththeIESBA(InternationalEthicsStandardsBoardforAccountants)CodeofEthicsforProfessionalAccountantsHoweverwealsoacknowledgethatthesestandardslawsandpoliciesdonotgovernalltypesofbehaviourAsaresultwealsohaveaCodeofconductwhichisapplicableandissuedtoallPwCpeopleandfirmsThisCodeisbasedonourvaluesandtakesthemtothenextlevelndashdemonstratingourvaluesinactionTheCodedefineshowweshouldbehaveandconductbusinessinawiderangeofsettingsandsituationsItalsocontainsaldquoframeworkforethicaldecisionmakingrsquorsquotoassistpartnersandstaffindecidingontherightcourseofactioninaddressingethicaldilemmastheycancomeacrossPartnersandstaffareexpectedtonotonlylivebytheCodevaluesintheircareerswithPwCbuttoalsohelpothersatPwCdothesame CEEhasafullyintegratedEthicsampBusinessConductnetworkSupervisionoverethicalmattersinCEEiscarriedoutbytheregionalEthicsandBusinessConductLeaderEachcountryhasalocalEthicsandBusinessConductTeamresponsibleforpromotingethicslocallyThisincludesbutisnotlimitedtocommunication and training to local country partners and staff

EachPwCofficehasaccesstothedetailedsupplementaryguidancetoourCodeofconductThesepoliciesincludeguidanceonsuchmattersasthereceiptofgiftsfromclientsclosepersonalrelationshipsandhowstaffshouldproceediftheybecomeawareofunethicalbehaviourbyanypartneroremployee

CEEhasaregion-widetoolaccessibletoallpartnersandstafftoenablethesendingofanonymousqueriestoaselectedEthicsampBusinessConductteamIndividualsfromoutsideofPwC including our clientsrsquo personnel can submit a query including in an anonymous manner by using a global PwC communicationstoolavailablefromhttpwwwpwccom

Whenpotentialnon-compliancewithourCodeofconductisreportedorotherwisesuspectedstepsaretakentoinvestigateandwhereappropriateremedythesituation

PartnersandstaffareencouragedtoreportandexpresstheirconcernsandmustdosofairlyhonestlyandrespectfullyPwCiscommittedtoprotectingindividualsagainstretaliation

PartnersandstaffatPwCareresponsibleforaddressingissuesthatarebroughttotheirattentionTheCEEComplaintsandAllegationspolicysetstheprotocolsforinvestigatingtheissuesreportedAllamendmentsneededtothefirmrsquossystemsorpoliciesidentifiedduringthecourseofanethicalinvestigationareaddressed

TheIESBACodeofEthicsandPwCstandardsaresupplementedwiththeEthicalRulesoftheHungarianChamberofAuditors

TofindoutmoreaboutPwCHungaryrsquosglobalqualitymanagementsystemethicalrequirementsindependencepolicyandtheeffectivenessofourinternalqualitycontrolsystempleaserefertoour2018TransparencyReportThePwCCodeofConductisavailableherehttpswwwpwccomgxenaboutethics-business-conducthtml

Living our Purpose and ValuesPwCrsquos Code of Conduct

May 2017

wwwpwccomcodeofconduct

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

49

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible operation

39 About our sustainability report

Purpose of the report

WehavepreparedsustainabilityreportsatPwCHungarysince2012Theinternalreviewcarriedoutaspartofthereportingprocessclarifiedtheextenttowhichourcorporatesystemsandprocessesaffectoureconomicenvironmentalandsocialperformanceandhighlightedtheareasforimprovementthatcouldfurtherimproveourperformanceinthefieldofsustainability

Limits of the report

ThereportcontainsconsolidatedinformationontheeconomicsocialandenvironmentalperformanceofPwCrsquosHungarianmemberfirmThereportingperiodincludesndashinaccordancewithourfinancialyearndashtheone-yearintervalbetween1July2017and30June2018(FY2018)DuetothespecialcalculationofthefinancialyearbesidestheinformationanddatathespecialmeasurementandcalculationmethodsarealsoshownwherenecessaryWherepossiblewehavealsoprovidedthedataofthepreviousfinancialyear(2016and2017)tofacilitatecomparison

WehavepreparedthereportinaccordancewiththeGlobalReportingInitiative(GRI)reportingframeworkintermsofboththestructureofthereportandthereportingprocess

WehavepreparedoursustainabilityreportinaccordancewiththeGRIStandardsCoreoptiontoreportabouteconomicandsocialimpactsemphasizingthefollowingprinciplesfordefiningreportcontentandqualitymaterialitystakeholderinclusiveness completeness accuracy comparability timelinessreliabilitybalanceandthesustainabilitycontext

Definition of the reporting process

InourreportingprocesswehaveprogressedinaccordancewiththestepsoutlinedintheGRIcriteriasystem

Firstlywedeterminedthefocalpoints(importantissues)thatarerelevantforthefutureofthecompanyandarecloselyrelatedtoourobjectivesSecondlyweexploredthecompanyrsquosenvironmentwhilemappingourwiderstakeholdergroupsandthenrankedthembytheirinfluenceandfinallyweexploredthemajortopicsthattheythinkarerelevanttothecompanyrsquosoperationStakeholdergroupsorldquostakeholdersrdquoarethosepersonssmallorlargesocialgroupsthatinfluencetheeffectivenessofcorporateoperationoronwhomthecompanyhasanyeconomicenvironmentalandsocialimpactandwhogainbenefitsorsufferdisadvantagesasaresultofthecompanyrsquosoperation

GRI Content Indices

GRI (Global Reporting Initiative) is an international organisationthepurposeofwhichistoprovideastandardframeworkofguidelinesandindicatorsforpreparingsustainabilityreportsthusensuringcomparabilityandpromotingtransparencyamongcompaniesThefollowingtableshowstheinformationincludedinthereportattachedtospecificGRIindicatorsYoucanreadmoreabouttheguidelinesandtheindicatorsonthefollowingwebsitehttpswwwglobalreportingorgstandards

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

50

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

102-14 3

102-15 29 httpswwwpwccomhuhuceo2018html

102-1 41

102-2 42

102-3 43

102-4 41

102-5 41

102-6 43

102-7 42

102-8 10

102-41 NAAccording to a decision by PwCrsquos CEO information on collective agreements is confidential

102-9 30

In the 2018 financial year PwC Hungary had a total of 810 suppliers Our procurement department had the three largest suppliers officially sign the Ten Principles of the UN Global Compact This means that our suppliers are responsible businesses that operate in accordance with the above values and principles

102-10There has been no significant change amongst PwCrsquos suppliers

102-11 PwC Transparency Report 2018

102-12 31

102-13 30

102-45 44

102-46 49

102-47 5

GRI Standards

Reference CommentPublication

numberPage

number

103-1 5

102-48 48

102-49 46

102-40 26

102-42 26

102-43 44

102-44 28-29

102-50 48

102-51 48

102-52 48

102-53 52

102-54 46

102-55 48-49

102-56 49

102-18 42

102-19 42

102-20 19

102-21 29

102-22 42

102-23 42

102-24 42

102-25 PwC Transparency Report 2018

102-26 42

102-27 42

102-28 PwC Transparency Report 2018

102-29 28-29

102-30 47

102-31 26-27

102-32 19

GRI Standards

Reference CommentPublication

numberPage

number

102-33 PwC Transparency Report 2018

102-34 PwC Transparency Report 2018

102-35 NAThis information is confidential according to PwCrsquos HR policy

102-36 13

102-37 NAThis information is confidential according to PwCrsquos HR policy

102-38 NAThis information is confidential according to PwCrsquos HR policy

102-39 NAThis information is confidential according to PwCrsquos HR policy

102-16 6

102-17 PwC Transparency Report 2017

103-1 7

103-2 7

103-3 7

201-1 44

201-2 NA No such information is available

201-3 13

201-4 NA

202-1 NA Does not apply to PwC Hungary

202-2 10

203-1 32-34

203-2 27

204-1 49

401-1 10

401-2 NAFull-time and part-time employees are entitled to the same benefits

401-3Staff on parental leave 35 Staff returning from parental leave 5

List of indicators

Employment agreement Form of employment

permanent temporary full-time part-time

25 751 694 85

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

51

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

GRI Standards

Reference CommentPublication

numberPage

number

402-1 The notice period is 30 working days

403-1 NA Confidential information

403-2There were no accidents at work related absences or lost working time during the reporting period

403-3 NA

403-4 NA

404-1

6 7

2017 2016 2017 2016

455 469

Gyakornok

Egy főre eső keacutepzeacutesi oacuteraszaacutem

Oumlsszes keacutepzeacutesi oacuteraszaacutem

60 64 35 490 37 440

Főaacutellaacutesuacute vagy reacuteszmunkaidős munkataacuters

50 52 1085 1092

Ceacutegtaacuters

404-2PwC Hungary does not regularly provide (retraining) counselling to retiring employees or those changing jobs

404-3 16

PwC assesses the performance of its employees each year Performance of staff of all grades and departments is measured through our Performance Coaching and Development system

405-1 10

GRI Standards

Reference CommentPublication

numberPage

number

414-1 30

414-2There were no such incidents at our company during the period under review

412-3httpswwwpwccomgxenabout-pwcpwc-human-rights-statementpdf

406-1There were no reported incidents of discrimination at PwC Hungary during the reporting period

407-1 29

408-1 PwC Transparency Report 2018

409-1 PwC Transparency Report 2018

410-1 PwC Transparency Report 2018

411-1No human rights violations were reported during the period concerned

412-1 PwC fully complies with this commitment

414-1 30

414-2 30

413-1 22-23

413-2 NA PwC is not aware of any negative effects

205-1There were no such local incidents during the period under review

205-2 47

205-3There was no such incident during the period under review

415-1 NA

206-1There was no such incident during the period under review

419-1

PwC Hungary did not identify any incidents of non-compliance that would be contrary to PwCrsquos statutes or its social media policy during this period

GRI Standards

Reference CommentPublication number

Page number

416-2There was no such incident during the period under review

417-2Number of incidents of non-compliance concerning product and service information and labelling 0

102-43

102-44

13-1416

20-24

27-29

102-2 40

417-3 8

418-1There was no such incident during the period under review

419-1There was no such incident during the period under review

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report

52

Sustainability report PwC Hungary 1 July 2017 ndash 30 June 2018

Responsible business

Imprint

CONTENTSReacuteka Budavaacuteri Bella Kundraacutek Anita Reacutecsaacutenyi Katalin Simon PwC Hungary

PUBLISHEDBYBorbaacutela PalotaiSenior manager Marketing Communications and Business Development PwC Hungary

Balaacutezs MeacuteszaacuterosPartnerPwC Hungary

PHOTO CREDITS PwC Photo Library Gaacutebor Bodoacute Shutterstock

CONTACT INFORMATIONPwC Hungary1055BudapestBajcsy-Zsilinszkyuacutet78Tel+3614619444wwwpwccomhuEmailinfohupwccom

Special thanks to members of the ldquoReporting working grouprdquo and the ldquoCorporate responsibility working grouprdquo of PwC Hungary for their contribution to this report