It’s time to accelerate the pace of changeHighlights of PwC China and Hong Kong’s FY18 Corporate Responsibility Report

2 | It’s time to accelerate the pace of change. Highlights of PwC China and Hong Kong’s FY18 Corporate Responsibility Report

“ A short message from our Chairman

Corporate Responsibility is a catalyst for being purpose led and values driven, evolving the role PwC plays in society. We believe that we have the power to create significant change to address the big challenges and opportunities our world is facing.

There has been significant social progress in China in recent decades. Yet it remains as important as ever that business takes a leading role to help address urgent social and environmental challenges.

Our Corporate Responsibility strategy supports our PwC purpose, to build trust in society and solve important problems, while ensuring we enhance our positive and minimise our negative social and environmental impacts. We are also guided by our CR ambitions for 2020, which set out clear long-term goals to help us measure our progress.

Raymund ChaoPwC Asia Pacific and Greater China Chairman

It’s time to accelerate the pace of change. Highlights of PwC China and Hong Kong’s FY18 Corporate Responsibility Report | 3

Stakeholder engagement

Stakeholder engagement is a critical starting point when it comes to strategy development, reporting and addressing stakeholder concerns.

In 2017 we engaged 3,441 individuals through our online sustainability survey — making this our largest stakeholder engagement process yet. The survey was conducted to help us better understand how our stakeholders view important

issues that impact the sustainability of our business. The valuable feedback we obtained is now being used to enhance our CR strategy, reporting and engagement efforts.

We continually review our stakeholder engagement process and will conduct another full stakeholder engagement exercise as part of our FY19 reporting.

3,441 individuals were engaged byPwC’s online survey

4 | It’s time to accelerate the pace of change. Highlights of PwC China and Hong Kong’s FY18 Corporate Responsibility Report

Our 2020 China and Hong Kong CR ambitions

Our CR strategy is a catalyst for delivering our purpose, to build trust in society and solve important problems. Two core principles support our CR approach and these are to do the right thing, and to be a catalyst for change. These are in line with PwC’s values, and guide us in our efforts to enhance our positive and minimise our negative social and environmental impacts.

Our CR ambitions for 2020 underpin our CR strategy. The ambitions set out clear long-term goals in community engagement, environmental stewardship and responsible business.

Help build a stronger NGO sector in China and Hong Kong.

Facilitate having 50% of our people engaged in community activities.

To be recognised as a leader due to the social value delivered through our services.

Measure our economic, social and environmental impact.

30% reduction in carbon emissions per capita from FY11 baseline.

To implement real-estate sustainability guidance across our operations in China and Hong Kong.

Our 2022 Global CR Commitments

While driving efficiency to reduce our absolute carbon impact, we commit to offsetting air travel emissions from FY19 and to sourcing 100% renewables for our electricity consumption and offsetting residual energy use by FY22.

We are investing in the future and growth of 15 million people, NGOs, and micro and social enterprises to help maximise their potential by FY22.

Environment

Driving efficiency

Skills & education

100% renewable

Building the capacity of NGOs

100% air travel offset

Supporting social and micro enterprises

Community

It’s time to accelerate the pace of change. Highlights of PwC China and Hong Kong’s FY18 Corporate Responsibility Report | 5

Across the global PwC network our contributions to local communities and environment have made an impact. We have set two new global goals to extend our impact and reach.

By volunteering our time and leveraging our people’s skills and experience we want to bring positive impact to our communities. We are doing this through the development of innovative transparency tools for the NGO sector and investing in education and capacity building and through volunteering in our communities.

One Step One Dream

One Step One Dream is our charity walk initiative to raise funds for Yao Foundation and to promote well-being amongst our people. 7,618 PwC people and 735 new graduate offerees participated in 2018, raising more than RMB380,000. The funds raised from this event were donated to the Yao Foundation to purchase basketball kits (basketball stands, basketballs, shoes and uniforms) for 40 primary schools across China, enabling thousands of children to pursue their basketball dreams.

Capacity building for NGOs

PwC China and Hong Kong is playing an important role in forging collaborations that build trust and enable NGOs to achieve greater impact. Transparency and good governance are crucial

Community engagement

6 | It’s time to accelerate the pace of change. Highlights of PwC China and Hong Kong’s FY18 Corporate Responsibility Report

for the development of trusted NGOs and social enterprises. We support local NGOs by providing our time, skills, expertise and resources through a range of capacity building opportunities.

PwC’s transparency tool

In December 2016, PwC launched China’s first free self-evaluation transparency check tool. The development of the tool was a collaboration between PwC, China Philanthropy Research Institute and China Global Philanthropy Institute. The tool works first by asking NGOs around 50 questions to help them better understand the level of transparency of their reports and external communications, and then providing possible improvement opportunities and best practice.

Investing in children and youth

Maximising the potential of children and youth is a key focus area of our community investment strategy. We assist by volunteering our time, providing financial donations and offering our services to NGOs at preferential rates. Our people are passionate about getting involved in

It’s time to accelerate the pace of change. Highlights of PwC China and Hong Kong’s FY18 Corporate Responsibility Report | 7

“The tool helps NGOs get a well-rounded assessment of their disclosures and is exactly what China’s NGO sector needs nowadays.”

— Lu Yin, Information Manager, China Charity Alliance.

their local communities. We support them by coordinating or funding volunteering activities. In 2019, we launched Social Impact Time, a new initiative that empowers our people to use skills, expertise and networks to innovate and contribute to social and environmental causes.

8 | It’s time to accelerate the pace of change. Highlights of PwC China and Hong Kong’s FY18 Corporate Responsibility Report

We respect the environment and are committed to understanding and reducing our impact. Our approach to environmental management is influenced by our environmental guiding principles. Our focus in recent years has been to grow internal awareness and promote environmentally responsible behaviours as well as

tracking and managing our green house gas emissions. As we continue to enrich our programme, we are evaluating new ways to address the environmental concerns raised by our stakeholders, including how to minimise our waste and enhance our energy management.

Log-off, restart and recycle Nearly all of PwC China and Hong Kong’s 17,680 partners and staff require a laptop to do their daily work. This generates significant potential for electronic waste. To address this responsibly, seven years ago, we developed a standardised approach that involves refurbishing, donating, reselling, and as a final resort recycling our laptops. PwC’s donated laptops are now being used to provide valuable IT skills to underprivileged children in rural China.

Carbon management

We are constantly looking into opportunities to improve our energy and carbon performance. We have set ourselves a goal in China and Hong Kong to reduce our carbon intensity, and have achieved 26% reduction in carbon emissions per capita since 2011. While our priority is to reduce our absolute carbon impact, offsetting is an important part of our strategy to mitigate emissions which are unavoidable. Starting in FY19, we are supporting two carbon projects, including Shanxi improved cookstoves project in China and Meru and Nanyuki community reforestation in Kenya to offset all emissions from business air travel — one of our largest carbon impacts. PwC has quality criteria in place that underpin all of our carbon offset purchases.

Environmental stewardship

It’s time to accelerate the pace of change. Highlights of PwC China and Hong Kong’s FY18 Corporate Responsibility Report | 9

Energy management

Since FY11, we have seen the growth of our business progressively decouple from our energy consumption, with our energy intensity per employee having decreased by 35%, compared to our baseline year. This trend is linked to a number of improvements, including the

Environmental awarenessA large part of our environmental stewardship programme involves engaging our people and raising their awareness on environmental issues, inspiring positive environmental actions and facilitating meaningful interactions with the environment. We promote green and sustainable behaviours through conducting projects and campaigns, including PwC’s tree planting events, reforestation project, Green Week, eco-markets and continue to release monthly environmental awareness messages to inform our people on a number of environmental topics.

acquisition of greener office, the implementation of energy efficiencies, sourcing 100% renewables and the adoption of hotelling practices, which helps us reduce our operational costs and our environmental impacts.

PwC China and Hong Kong’s electricity consumption and average employee headcount for the period (FY11-FY18)

Per capitaenergy intensity

(MWh/FYaverage

headcount)

FY111.41 1.24

-12%

-15%-14%

-16%-22%

-29%-35%

1.19 1.21 1.18 1.10 1.00 0.92FY12 FY13 FY14 FY15 FY16 FY17 FY18

10 | It’s time to accelerate the pace of change. Highlights of PwC China and Hong Kong’s FY18 Corporate Responsibility Report

Our workplace

By offering an inspiring and supportive work environment, it’s our hope that our people are able to realise their full potential and in turn, deliver a truly distinctive service to our clients.

At PwC, we recognise that each individual’s career progression depends as much on having the right opportunities and getting professional qualifications as it does on their performance. Throughout our people’s career with us, we offer them technical and non-technical learning and development opportunities at the right time to

help them discover their passion and realise their aspirations.

Looking after our people’s wellbeing is important to us. We invest in our people’s physical, emotional and mental, occupational, social and financial wellbeing to support them to live well and work well level to support them live well and work well. On an annual basis, we also ask our people how we are doing through our Global People Survey. The results of this survey help us monitor and manage our performance.

We believe our diversity and inclusion footprint allows us to bring a fresh perspective to our work, our people and our communities. Our diversity

and inclusion strategy focuses on three key areas: workforce, workplace and marketplace.

77% of our partners and staff agree that PwC is an inclusive work environment where individual differences are respected and valued

— Based on PwC China and Hong Kong’s FY18 Global

People Survey results.

It’s time to accelerate the pace of change. Highlights of PwC China and Hong Kong’s FY18 Corporate Responsibility Report | 11

Summary of our performance in numbersSummary of our KPIs Unit FY11 FY16 FY17 FY18

Charitable donations - partners & staff

US$ 142,528 951,286 491,335 754,153

Charitable donations - firm (cash and in-kind)

US$ 556,130 735,342 622,941 751,132

Total number of volunteers* No. of partners & staff

1,208 3,045 6,325 8,989

Volunteer participation rate* % participation 12% 21% 39% 51%

Total number of volunteer hours*

Hours 9,345 29,176 38,548 50,658

Number of skilled volunteers No. of partners & staff

not tracked 362 373 450

Number of skilled volunteer hours

Hours not tracked 6,236 7,858 8,539

PwC drives positive societal change through our community initiatives**

% favourable N/A N/A 76% 74%

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

% favourable N/A N/A 79%

76%

Environmental Stewardship

Energy consumption (heating and electricity)

MWh 20,044 24,517 26,529 27,164

Air travel (distance) 1000km 91,977 128,617 145,750 152,525

Paper consumption tonnes 688 572 598 628

Total GHG emissions tCO2e 40,555 49,308 52,704 54,573

Scope 1 tCO2e 91 90 89 77

Scope 2 tCO2e 14,408 16,376 17,200 17,351

Scope 3 tCO2e 26,056 32,843 35,416 37,145

GHG emissions per capita tCO2e per average employee headcount

4.16 3.44 3.23 3.09

PwC drives positive societal change through our environmental initiatives**

% favourable N/A N/A 77% 75%

Our workplace

Total headcount FY average 9,760 14,352 16,304 17,680

Number of partners FY average 403 545 585 612

Number of staff FY average 9,357 13,808 15,720 17,069

Female partners % female partners (as of 30 June)

29% 31% 31% 31%

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

34% 18% 30% 34%

Hours in training time through formal L&D programmes

1000 Hours 1,201 1,524 1,603 1,636

Average number of trainings hours per person

Hours 123 106 98 93

Completion of annual compliance

% completion 100% 100% 100% 100%

Recommend PwC as a great place to work

% favourable 47% 75% 75% 73%

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

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

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

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