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FY13 US Corporate Responsibility ReportCorporate responsibility begins and ends with our people. So who better to share our story?

“I firmly believe that PwC’s success requires each one of our 39,000 people to drive our vision.”

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Watch now

Our CR story

We believe that corporate responsibility is an integral part of who we are as a firm. So, who better to tell our story than our own people?

Our value chain

As a professional services firm, we don’t have a typical value chain. Ours revolves around our people. Watch to learn more.

Our CR blog

Join the discussion and share your stories and strategies – on our CR blog

Our CR blog

Our performance

Key performance indicators

CRblog

“”

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Where we standOperating responsibly is quite simply the right thing to do and is also the key to our long term success.

In this sectionChairman’s messageFirm governance and managementCR strategy and governanceMateriality analysisStakeholder engagementAbout PwCAbout this report

“I couldn’t be more proud of our partners and staff for the impact they have made in our communities.”

Chairman’s message CR strategy and governanceOur CR strategy aligns with the firm’s priorities to differentiate our brand in the marketplace, drive operational efficiencies and engage our people.

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About this reportThis report is aligned with the Global Reporting Initiative’s (GRI) G4 guidelines.

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Stakeholder engagement

We see stakeholder engagement as a vital element of continuous improvement.

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Materiality analysis

We look at our entire value chain and assess and prioritize our material topics.

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About PwCThe U.S. operations of PwC comprise approximately 39,000 diverse, vibrant, and talented individuals working from 80+ offices across the country.

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staff in 80+ offices across the U.S.

39,000+

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What does responsibility mean to us?

Watch our video

About this report

Materiality analysis

Stakeholder engagement

Firm governance and management

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Chairman’s message

The world is changing rapidly. Accelerating urbanization. Demographic shifts. Climate change and resource scarcity. Shifts in global economic power. Technological breakthroughs. Each of these alone will push business and industry to adapt. Taken together, they require our firm and our clients to be more resilient and more flexible in the ways we operate. Uncertainty is the new normal. While these megatrends may pose substantial challenges, they also present big opportunities for our firm and for the stakeholders we serve.

Our firm’s vision, however, has not changed. We are focused on making a difference for our clients, our people, the capital markets, and our communities by helping them unlock their potential and create lasting value. We push ourselves to set the standard in quality and lead the profession. We know being a responsible leader also provides us an opportunity to inspire our people through our actions, and we want them to be proud of the organization they chose to grow their careers. And we know the reputation we have built in the marketplace allows us to sustainably grow our firm, hire the very best people, and invest for tomorrow.

This past year was a strong one for our business as well as for our efforts around Corporate Responsibility. For example, in FY13 we increased the number of volunteer hours our people are giving in our communities by 90%. Many of these volunteer hours were in support of Earn Your Future (EYF), our five-year commitment to improve financial literacy among young people and financial training for educators. In our first full year of this effort, our people generously gave of their time and skills, delivering close to 150,000 hours.

We’ve worked hard in FY13 to establish an infrastructure and the relationships needed to succeed in our EYF efforts long term, and are looking forward to building upon those foundations in FY14 and beyond. Our FY13 efforts were solid and I couldn’t be more proud of our partners and staff for the impact they have made in our communities. The feedback from the students and educators has been tremendous.

Our pro bono efforts continued to gain steam this past year, having exceeded our $10 million stated goal by nearly 40% and delivering nearly $2.3 million to organizations focused on youth education. In FY14, we are looking to find ways to increase the scale of our engagement so even more of our people can participate.

We’re also making progress in managing our carbon footprint. This year, we met our FY16 30% absolute carbon footprint reduction goal with increased efforts on the part of our people and through the use of renewable energy certificates. Our next challenge is to continue building on our achievement as we seek to grow our business.

“I firmly believe that PwC’s success requires each one of our 39,000 people to drive our vision. Getting everyone to understand what’s important to the firm – from our values and behaviors to our services and our approach to the marketplace – helps us serve our clients better. It also makes our people better at what they do. And developing better leaders is good for everyone.”Bob Moritz, Chairman

Our commitments

Find out what being responsible means to us in the words of our greatest asset – our people.

Earn Your FutureOur five-year commitment to youth education.

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$10 million Committed in FY13 to supporting select non-profit organizations through our pro bono programs.

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$50 million Our growth goal for the PwC Charitable Foundation by FY16.

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In the broader marketplace, FY13 saw the launch of our Investor Resource Institute, aimed at providing insights and perspectives on the capital markets. We are also seeing increased dialogue between our firm, our peer firms, and regulators on matters such as audit quality.

Whether it’s EYF or delivering our expertise to the companies we serve, our people are at the heart of our strategy. We want to maintain a culture that attracts the top talent by providing them with the coaching and real-time feedback necessary to grow their careers, an inclusive and caring environment that supports their ambitions, and the flexibility and options they want at every stage of their lives and careers.

As a result of our commitment to our people, our internal people engagement survey score in FY13 was the highest since we began tracking the engagement index in 2006. We’re doing well and improving, but we have a lot more work to do, especially around flexibility.

I firmly believe that PwC’s success requires each one of our 39,000 people to drive our vision. Getting everyone to understand what’s important to the firm – from our values and behaviors to our services and our approach to the marketplace – helps us serve our clients better. It also makes our people better at what they do. And developing better leaders is good for everyone.

I encourage you to read about these efforts and much more about Corporate Responsibility at PwC in the pages of this online report. I believe one of the most important attributes of a leader is the ability to listen. I welcome your feedback on how we could do even better.

Sincerely,

Bob Moritz, U.S. Chairman and Senior Partner, February 2014

100% We encourage 100% participation by our people in CR activities.

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30% Overall carbon reduction goal by FY16.

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Firm governance and managementBoard of Partners and PrincipalsThe Board of Partners and Principals (the “Board”) is the highest governance body of our firm. The Board is responsible for the overall strategic direction of the firm and approves the firm’s philosophy, policies, and direction.

The Board’s authority generally extends to approving the firm’s long-range strategies and business plans, as well as major financial commitments, major transactions, and other matters that could significantly affect the scope or expansion of the firm’s practice and business, and oversight of management. The Board also has authority over other matters including firm governance, matters related to the firm’s partners and principals (referred to hereafter collectively as “partners”), and certain financial matters such as the firm’s capital and the manner in which partners participate in firm profits. The Board currently has nine standing committees:

• Accounting and Auditing Practice

• Admissions

• Clients

• Finance

• Governance

• Management Evaluation and Compensation

• Partner Affairs

• People

• Risk Management, Ethics, and Compliance

The Board and its standing committees receive regular presentations from management on all aspects of the firm’s operations, including its compliance with applicable laws, regulations, standards, and codes of conduct.

The Board is comprised entirely of active partners. Under the firm’s Code of Conduct and in order to avoid possible conflicts, partners and employees are generally restricted from accepting directorships, other similar executive appointments, or membership in a supervisory or advisory board in for-profit organizations. In addition, the firm has implemented a number of policies and risk management standards that address conflicts of interest, and ethics and compliance. Reflecting the private nature of the partnership, there are no independent (i.e., external) Board members. As all Board members are partners, they are intimately familiar with the operations and business of the firm. Potential Board candidates are subject to a comprehensive nominating process that has as its goal the selection of candidates who possess the best qualifications, experience, and personal attributes to be Board members. The nominees are then subject to election by the entire partner group, who are able to make their own assessment of the qualifications and expertise of the various nominees to serve as Board members.

Senior Partner and Board Lead DirectorThe partners of PwC elect a Senior Partner. The Senior Partner manages the practice and business of the firm, and proposes strategic initiatives for the firm. The Senior Partner also appoints partners to assist in firm management. The roles of the Board Lead Director and Senior Partner are separate and filled by different people. The Lead Director functions as the lead director of the Board and the Senior Partner functions as the Chairman and chief executive officer of the firm. Neither the Lead Director nor any other member of the Board, other than the Senior Partner, may designate others to assist in the management of the firm.

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U.S. Leadership Team (USLT) and Extended Leadership Team (ELT)In addition to the Senior Partner, the U.S. Leadership Team (USLT) consists of approximately 15 partners, who were appointed by the Senior Partner. The USLT has reviewed and approved this report. The Extended Leadership Team (ELT) is a broader set of market, sector, and business unit leaders who serve as an extension of the USLT in carrying out the day-to-day operations and strategy of the firm.

Partners and principalsOverall, partner profit allocation is based on firm performance, including the firm’s success in executing on its strategy, with particular focus placed on evaluating partner performance in four primary areas: people, quality, partnership and teamwork, and profitable growth. Corporate responsibility (CR) is not directly reflected as a separate component of an individual partner’s evaluation, but its priorities are embedded throughout the overall firm strategy.

The “shareholders” of the firm are the partners. There are multiple two-way communications between the Board and the partners; for example, regular written communications to all partners on the Board’s ongoing activities and meeting proceedings, the Board Outreach program (i.e., meetings of individual Board members with smaller groups of partners, including sessions at partner meetings), and partner webcasts. Also, governance mechanisms such as Board elections and other partner voting events provide opportunities for partners to provide direction on firm matters.

While our firm leadership and Board are responsible for approving certain major decisions, our people have an impact on the firm’s strategy and direction. Throughout the year, our employees provide feedback to leadership, using several different forums and vehicles to voice their questions, suggestions, comments, and concerns to various levels of management. We are committed to building a culture in which our people feel comfortable speaking up, and use their candid feedback to help guide our firm’s strategy.

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CR strategy and governanceWe are all witness to the big shifts that our society must face – the issues have become more complex, becoming intertwined with global and economic challenges. To maximize the impact that the firm can have on these sizable issues, drive greater operational efficiencies and further define our brand in the marketplace, we focus our CR efforts on three societal themes – youth education, climate change and social inclusion. And in order to succeed on our strategy, we are marshalling our resources for greater impact through our core CR commitments – Earn Your Future, pro bono, and carbon reduction. By demonstrating the collective impact of all 39,000 partners and staff, we can meaningfully impact our people, clients and communities, and demonstrate that CR is not only the right thing to do, but part of what defines who we are in every facet of what we do.

Our CR teamTo bring our commitments to life across the firm, we have a dedicated CR team of 12 professionals. The team develops strategy and initiatives, monitors key CR performance indicators, and reports progress to both market and firmwide leadership teams. Based on periodic reviews of progress, we readjust our goals and approaches to achieve greater impact. The CR team is led by a partner, who reports to the Markets, Strategy and Stakeholders leader, a member of the USLT.

Globally, corporate responsibility at PwC is guided by the Global Corporate Responsibility Board (GCRB). The GCRB is comprised of the CR leaders from our largest member firms (the U.S. firm provides two participants), regional CR leaders, and sustainability subject matter professionals from our Assurance and Advisory practices. In keeping with standard industry practice and as a means of gaining additional insight, an external independent advisor also sits on the GCRB. The role of the GCRB is to provide governance, input, and direction to the global PwC CR strategy in alignment with PwC’s overall business strategy and to provide a forum for CR alignment across the network of member firms. The GCRB convenes quarterly and conducts one in-person meeting a year.

“We need to challenge ourselves to think beyond incremental change. We need radical, breakthrough innovation that addresses trends impacting not only us, but generations to come.”

Shannon Schuyler, Partner, U.S. Corporate Responsibility Leader

Earn Your Future Delivering pro bono Carbon reduction

Engaging our people PwC Charitable Foundation

GRI G4 reporting

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Materiality analysisReporting on what is material to a company is the foundation for building a GRI report. As such, the contents of this report have been shaped by our materiality analysis, which satisfies the GRI principles for defining report content, sustainability context, materiality, completeness, and stakeholder inclusiveness. To determine which topics are material to stakeholders and the firm, we first defined PwC’s value chain, identified key stakeholders at each stage of that value chain, and then identified issues of concern to PwC’s stakeholders to develop an initial list of material topics. We reviewed the list for completeness and validated our assumptions by performing targeted engagement and research, applying the various “tests” provided by GRI. We then assessed the significance of the issues to determine which sustainability topics passed the materiality threshold and mapped those sustainability topics to the GRI aspects.

Explore our interactive graphic to learn about our materiality analysis process and results:

Business performanceCreating economic value for our partners, staff, and other stakeholders.

GRI aspect(s)• Economic performance

BoundaryThe primary impacts of business performance occur within PwC. However, indirectly, stakeholders outside the organization including PwC’s clients, suppliers, regulators and communities where we live and work, can also be impacted.

Key stakeholders• Partners and staff, current

and prospective

• Regulators, standard setters, and professional bodies

• U.S. firm clients

• Suppliers

• Communities and NGOs

• Retired partners and alumni

• Investment community

Hiring peopleMaintaining a steady pool of incoming talent to build our workforce today and for the future.

GRI aspect(s)• Market presence

BoundaryThe primary impacts of hiring people occur within PwC as we build our workforce, but our ability to attract

high-caliber employees is relevant to the quality we are able to deliver to our clients.

Key stakeholders• Partners and staff, current

and prospective

• U.S. firm clients

• Communities

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Growing peopleCultivating a diverse workforce that has opportunities for professional and personal growth through learning and engagement.

GRI aspect(s)• Employment

• Training and education

• Diversity and equal opportunity

BoundaryThe primary impacts of developing our people occur within PwC and help us ensure we maintain the quality of our people. However, the knowledge,

competence, and integrity of our workforce also have an impact outside the firm on our clients and on the investment community more broadly, as we develop people who are equipped to enter the workforce and are prepared for the challenges of an evolving marketplace.

Key stakeholders• Partners and staff, current

and prospective

• Regulators, standard setters, and professional bodies

• Retired partners and alumni

• U.S. firm clients

• Investment community

CommunitiesEngaging our people to create meaningful, long-term value for our local communities and society more broadly.

GRI aspect(s)• Local communities

BoundaryThe impact of this topic is largely felt outside our organization in the communities in which we live and work

as we strive to impact the workforce of tomorrow through our Earn Your Future commitment. We also find helping our people engage in meaningful community activities has positive impacts in our organization because it deepens the commitment of our employees to our firm.

Key stakeholders• Communities and NGOs

• Partners and staff, current and prospective

Customer privacyProtecting and securing confidential information of our clients.

GRI aspect(s)• Customer privacy

BoundaryThe impact of this topic occurs primarily outside our organization, where breaches in confidentiality can affect our

clients. Such breaches also negatively affect the firm’s brand, and confidence of the investment community.

Key stakeholders• Investment community

• U.S. firm clients

• Partners and staff, current and prospective

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ComplianceSetting a tone and providing the systems needed for consistent ethical behavior, independence, and compliance with all legal and firm requirements.

GRI aspect(s)• Compliance

• Anti-corruption

BoundaryProviding services in compliance with all requirements is essential to the success of our business and integrity of our

brand and therefore, to our employees. The integrity with which we conduct our business, in turn, is important to our clients; investment community; and regulators, standard setters, and professional bodies.

Key stakeholders• Partners and staff, current

and prospective

• U.S. firm clients

• Investment community

• Regulators, standard setters, and professional bodies

Greenhouse gas (GHG) emissionsUnderstanding and managing our emissions as a way to contribute to addressing the challenge of climate change.

GRI aspect(s)• Energy

• Emissions

• Transport

BoundarySome of our GHG emissions occur under our operational control and others under the control of our employees. Our

primary areas of impact are air travel, commuting and energy consumption in our offices. In each of these areas, we aim to manage between reducing our impact while maintaining the level of service and quality for our clients. The boundary of our GHG emission footprint is discussed here.

Key stakeholders• Partners and staff, current

and prospective

• Suppliers

• Communities and NGOs

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Stakeholder engagement

Stakeholder engagement is an important part of what we do as a professional services firm, as an employer, and as a member of broader society. In each of these roles, we use stakeholder engagement to help us seek continuous improvement. We are working to identify the important issues for our stakeholders, assess the effectiveness of our approach to engagement, and improve our impact over time. We have identified our primary stakeholders as those who have a significant interest in the actions and views of the firm, and whose actions and views are, in turn, of significant interest to us.

Explore our interactive graphic to learn about our stakeholder engagement:

Investment community

Select engagement methods• Launched PwC’s Investor Resource Institute, which focuses on sharing PwC’s

views on the many issues of interest to the investment community, including industry perspectives, reporting, accounting, auditing, corporate governance, and sustainability.

• Conducted investor roundtables, focusing on sector-specific financial reporting issues and how the role of the auditor might be enhanced.

• Hosted an annual conference for investors, aimed at providing a forum to exchange perspectives on a wide variety of topics.

• Launched our first investor survey in order to learn more about what corporate reporting and governance topics are top of mind from an investor standpoint.

• Engaged in dialogue with organizations that represent investors, including CRUF and CII.

Value and outcomes achieved• Provided the information and perspectives of interest to the investment community.

• Enhanced PwC’s understanding of investors’ views on a variety of topics.

• Delivered “Our Focus on Audit Quality” report, to provide greater transparency about our audit practice and our focus on quality.

CRUF: Corporate Reporting Users’ Forum

CII: Council of Institutional Investors

“Following the Golden Rule – do unto others as you would have them do to you – is both the right and the smart thing to do. And making the effort to consider different viewpoints and treating those views with respect goes a long way toward establishing and keeping trust.”Tim Ryan, Vice Chairman and Markets, Strategy and Stakeholders Leader

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U.S. firm clients

Select engagement methods• Interacted frequently with our clients throughout our engagements.

• Conducted surveys and other outreach regarding PwC’s delivery of service.

• Participated in regular meetings with audit committees during the course of our audit work.

• Hosted periodic audit committee forums and roundtable discussions to engage in active dialogue around issues relevant to the group.

Value and outcomes achieved• Valuable two-way dialogues during the course of our audit work with our clients

and audit committees where we share our independent perspective on auditing, accounting, financial reporting, and regulatory developments.

• Provided relevant insights to clients on how they can improve operations, controls, and other aspects of their business.

• Developed thought leadership to inform audit committees and companies of matters important to their role, including corporate governance.

• Enhanced our client service delivery based on feedback received.

Regulators, standard setters, and professional bodies

Select engagement methods• Participated and engaged in dialogue with regulators and standard setters

such as the SEC, PCAOB, the FASB, and the EITF through meetings, seminars, and advisory groups.

• Responded to feedback from regulators regarding our firm and the profession.

• Contributed to various professional organizations such as the AICPA and the CAQ through leadership and membership roles in committees and subcommittees.

Value and outcomes achieved• Obtained insights that help the firm to continuously improve audit quality.

• Provided perspective on the various views and positions taken by these professional bodies with the objective of helping to improve financial reporting and audit quality.

SEC: U.S. Securities and Exchange Commission

PCAOB: Public Company Accounting Oversight Board

FASB: Financial Accounting Standards Board

EITF: Emerging Issues Task Force

AICPA: American Institute of Certified Public Accountants

CAQ: Center for Audit Quality

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Partners and staff, current and prospective

Select engagement methods• Issued leadership communications on our firm values and strategy, which actively

solicited feedback.

• Conducted our annual Global People Survey which provided an opportunity for our people to share their perspectives on the firm’s performance in various practice areas.

• Encouraged and supported diversity by engaging partners and staff through involvement in affinity groups and external organizations such as NABA, ALPFA, and Ascend.

• Interacted with students and faculty on campus and through various development programs.

• Promoted an active dialogue during the interview process for both campus and experienced hires.

Value and outcomes achieved• A high-performing employee population consistently focused on the values

and goals of the firm, in particular with respect to quality in the performance of all professional services we provide.

• Improved scores on our Global People Survey.

• Improved attraction and retention, including diverse partners and staff.

• Enhanced understanding by leadership of our people’s views.

• Increased overall awareness of PwC on campus and acceptance rates of top candidates.

NABA: National Association of Black Accountants

ALPFA: Association of Latino Professionals in Finance and Accounting

Retired partners

Select engagement methods• Engaged in dialogue with a representative group of retired partners through the Retired

Partner Committee.

• Delivered periodic communications from our senior partner to our retired partner community.

• Provided access to information and updates through a dedicated Retired Partner Portal.

• Promoted connectivity between active partners and retired partners in local markets.

Value and outcomes achieved• Received formal and informal input from retired partners on matters affecting them

as a constituency.

• Leveraged retired partners’ experience and skill sets on matters such as recruiting, business development, client relationship matters, and corporate responsibility activities.

• Informed retired partners of firmwide matters.

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Alumni

Select engagement methods• Delivered monthly alumni electronic communications, providing updates

on firmwide activities.

• Offered access to continuing professional education (CPE) webcasts.

• Provided seasonal networking opportunities for key alumni segments.

Value and outcomes achieved• Informed alumni of firmwide updates and activities relevant to them.

• Increased network opportunities for alumni.

• Helped alumni maintain professional credentials.

Suppliers

Select engagement methods• Engaged with diverse suppliers at key conferences and events sponsored by

organizations such as the National Minority Supplier Development Council and Women’s Business Enterprise National Council.

• Conducted our annual supplier survey to understand their corporate responsibility performance and priorities.

Value and outcomes achieved• Built relationships with minority- and women-owned business enterprises

(MWBEs).

• Assessed compliance with PwC’s vendor code of conduct and the United Nations Global Compact principles.

Communities and NGOs

Select engagement methods• Volunteered in our local communities through firm-sponsored programs,

such as Earn Your Future.

• Delivered pro bono services to select non-profit organizations.

• Engaged with key organizations aligned with our areas of focus of youth education, diversity and inclusion and climate change.

• Participation by our partners and staff on non-profit boards.

Value and outcomes achieved• Established stronger relationships with key non-profit organizations, schools

and community leaders.

• Helped strengthen the mission of non-profit organizations.

• Engaged 500,000 students and 18,000 educators through Earn Your Future efforts.

• Participation of nearly 71% of our people in volunteer, charitable and other CR activities.

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About PwCPwC is part of a global network of firms connected through membership in PricewaterhouseCoopers International Limited (PwCIL). Our firm has a longstanding history of delivering exceptional services to our clients and providing an incomparable professional experience for our people. Today, the PwC global network of firms is made up of over 184,000 partners, principals, and staff operating in 158 countries across the world. The U.S. operations of PwC, the focus of this report, comprise approximately 39,000 diverse, vibrant, and talented individuals working from 80+ offices across the country.

ServicesOur firm is organized around our services, industries, and geographies. Nationally, we have partners who lead our sector concentrations and our three core lines of service for Advisory, Assurance, and Tax. At the market level – where we most directly impact our people and clients – we are organized into 20 strategic markets, each of which is led by a market council, comprised of leaders from each of our core lines of service and a market managing partner (MMP).

Our people work closely with our clients to deliver solutions tailored to the unique needs of the diverse industry sectors that we serve. We combine our unique perspectives, skills, and backgrounds to create innovative solutions to today’s business challenges. Our industry-focused professionals in the fields of assurance, tax, human resources, transactions, performance improvement, and crisis management help to resolve complex client and stakeholder issues. We also bring our experience and talents to help educational institutions, the federal government, non-profits, and international relief agencies address their unique business issues.

184,235 staff in 158 countries.

39,000 staff in 80+ offices across the U.S.

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About this reportThis report is organized by our four CR areas of focus: Building Trust, Engaging our people, Impacting communities, and Managing our footprint. It aims to provide insight into our CR perspective, progress, and performance, and guide readers to other relevant content on pwc.com. To continue to advance our CR disclosure, we made significant progress in aligning our reporting with the Global Reporting Initiative (GRI) G4 Guidelines. The G4 Guidelines, issued in May 2013, represent a substantial step forward, helping organizations focus their reporting on their most material issues. We followed the guidance for reporting in accordance with G4 at the core level, including the preparation of a materiality analysis for the development of report content and indicator selection. However, because of a small number of omissions noted in the index here, we do not claim to be reporting in accordance with G4. More information on the GRI Guidelines and application levels is available at www.globalreporting.org.

Reporting is an important way of strengthening ties with our stakeholders, and we welcome your feedback via our Contact Us page.

Report boundariesPricewaterhouseCoopers LLP (PwC) is a Delaware limited liability partnership and is the U.S. member firm of the PwC global network of firms through its membership in PricewaterhouseCoopers International Limited (PwCIL). This report covers PwC’s U.S. operations in the U.S. It does not cover non-U.S. based operations that may be conducted by PwC subsidiaries, other members of the PwC network, or PwC U.S. operations outside of the U.S. This report covers our fiscal year 2013 (FY13), with some additional narrative around calendar 2013 initiatives, where appropriate. Our fiscal year runs from July 1 through June 30. During FY13, PwC completed a number of acquisitions, none of which were considered material to this report. Prior year data has not been adjusted to reflect the impact of entities acquired in FY13. The boundaries of the material aspects that drive our reporting are stated in the full GRI index. The boundary of our greenhouse gas footprint analysis is stated here.

References in this report to “our firm” refer to the U.S. operations of PwC and references to “partners” include partners and principals. More information about PwC is available at www.pwc.com/us.

You can read our FY13 CR summary in app or pdf

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Building trustDespite shifts in our economy, the fundamental role our firm plays in the capital markets has not – and will not – change. For us, it is important to deliver quality, transparency, and integrity to the marketplace.

In this sectionDemonstrating integrityCreating sustainable valueSharing insightsDelivering pro bonoPublic policyStrategic collaborations

Sharing insightsEvery day, we work with clients to tackle business issues, exchange ideas, and look ahead to new opportunities. Through our thought leadership, we share these diverse perspectives and continue the conversation.

Connect with PwC thought leaders and their insights on the business issues that matter most.

We purchase goods and services from approximately 6,500 direct suppliers that enable our people to carry out their work.

6,500+ suppliers

“It’s great to be part of a team whose work with clients is helping to create a cleaner, more sustainable future for everyone.”Lauren Koopman, DirectorCreating sustainable value

“We are trusted to bring quality and integrity to all that we do, especially in what we deliver to our clients and the marketplace every day.”Brian Ness, PartnerDemonstrating integrity

Delivering pro bono Sharing

insights

Strategiccollaborations

Public policy

Read more

Delivering pro bonoPwC, and all the thousands of people who work with us, are part of a bigger, wider community. We have the opportunity to share our skills with non-profit organizations as a way of helping them make a real difference to society.

Hours of pro bono delivered

$10 millionFY13 pro bono commitment

Fee-waived projects 39,074 hours

Loaned staff 3,116 hours

Board seat participation 13,505 hours

$14.0 million

FY13 target exceeded Read more

Creating sustainable valueWe’re a business that can make real difference in the capital markets. That’s why the quality of our work is paramount, and its accuracy and reliability crucial.

Read more

Strategic collaborationsWe collaborate with organizations aligned to our cause areas to deliver economic, social, and environmental value.

Read more

Public policyAs a result of the diverse services we provide and the number of industries in which we operate, a broad array of public policy issues has the potential to impact the work we do. We work to educate and inform decision makers, as well as those who impact and shape public policy, on issues that directly impact our ability to bring value to the capital markets.

Read more

Demonstrating integrityDemonstrating integrity involves all facets of our business. Trust and transparency from our people, as well as our suppliers, are central to what we do and how we do it.

Read more

Read more

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Demonstrating integrityIn our business, trust is crucial. It is the foundation of every transaction, the backbone of every market, and speaks to reliability, confidence, and honesty. At PwC, demonstrating integrity is at the heart of everything we do – for the good of our business and for society as a whole.

Our Codes of Conduct

Our suppliersBreakdown of our suppliers by type

Like many professional services firms, our supply chain consists of the goods and services needed to enable our people to carry out their work. We purchase major goods and services from approximately 6,500 direct suppliers.

Human Capital 50%

Property & Facilities 15%

IT & Telecom 25%

Marketing & Communications 5%

Travel 5%

6,500+ suppliers

In FY13, all of our partners and staff completed independence, ethics, and compliance training.Maintaining independence

To promote trust in the marketplace, we must ourselves be trusted. In support of our commitment to integrity, we are governed by PwC’s global Code of Conduct and Our Standards, the U.S. companion to the global Code of Conduct. The Code is designed to guide us in upholding professional standards, mitigating corruption, and conducting our business responsibly and with integrity. Each of us at PwC has an obligation to know and understand not only the guidelines contained in the Code, but also the values on which they are based. We also have an obligation to comply with the letter and spirit of the Code and to help others do the same. All individuals are encouraged to ask questions and raise any potential concerns through appropriate channels, including the Ethics & Compliance HelpLine. Ethics training and compliance is an essential and mandatory part of the PwC experience, and, each year, all partners, principals, and staff must re-confirm their adherence to and knowledge and acceptance of PwC policies, including those pertaining to corporate responsibility.

As our firm transforms how it delivers services to its clients and internally, we see a growing number of alternative labor sources (or non-U.S. firm employees) supplementing our teams. We created the U.S. firm Third Party Labor Code of Conduct to help govern and guide the work that these resources provide on behalf of the U.S. firm. We believe that these resources have an obligation to know, understand, and comply with the guidelines to handle firm and client information with the utmost care and conduct business within compliance with policies, regulations, and expectations that govern our work and professional conduct, as well as any contractually agreed upon arrangements.

We also have a Supplier Code of Conduct that outlines the expectations we have of our suppliers. We see the Supplier Code as an opportunity to engage in a rich and sustained dialogue with our suppliers, helping us to leverage our purchasing power and encourage alignment of our corporate responsibility approach with theirs.

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Maintaining independenceIndependence is fundamental to our ability to serve our clients and the public interest. It gives our clients, regulators, and the public confidence that we act with integrity and objectivity. We provide our partners and staff with robust systems and tools to manage their independence responsibilities, including a dedicated team of full-time independence specialists. This team is responsible for developing independence policies and guidelines, and for helping our client service teams maintain independence according to regulatory rules and requirements. A U.S.-based call center is available for guidance on personal independence questions and other compliance requirements. Partners and staff are also required to complete comprehensive course work around independence, ethics, and compliance on an annual basis.

Questions involving independence compliance are generally identified by the affected partner or other professional and through the firm’s audits of individuals’ personal independence compliance. When we determine a matter of noncompliance exists, we address and resolve the matter promptly. Resolution includes discussing the matter with the audit committees of companies for which U.S. Securities and Exchange Commission (SEC) and Public Company Accounting Oversight Board (PCAOB) independence requirements apply. In FY13, we concluded, and the respective audit committees agreed, that none of the noncompliance matters we identified involving SEC and PCAOB independence requirements compromised our objectivity. Accordingly, none of those instances was of a nature that required us to resign (or caused the audit committee to ask us to resign) as the auditor.

We have a dedicated call center to provide compliance guidance to our people 24/7.

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Creating sustainable valueOur position as a leader in our profession affords us both the opportunity and responsibility to make a positive difference in the marketplace. We realize everything we do – from the smallest interactions to the most public of statements – has the potential to make an important and lasting impact. Each and every day we ask our 39,000 people to interact with our clients in a way that helps them enhance and sustain the value of their business, for the benefit of stakeholders. That is why quality work is fundamental to delivering value to our clients, capital markets, investors, and other stakeholders. It is the basis on which we’re built.

Sustainable Business SolutionsJust as we see our corporate responsibility strategy as key to our ability to achieve important objectives such as attracting and retaining talent, containing costs, and driving revenue, many of our client organizations do as well. Our Sustainable Business Solutions practice engages with leading U.S. companies every day, providing a range of services to help them create and protect business value by more efficiently using natural capital, and building resiliency as the effects of environmental change take hold.

Accurate and reliable financial information is critical to capital markets and to investor confidence. We believe our firm plays a key role in enhancing the reliability of financial information through the performance of financial statement audits and, where appropriate and allowable, the delivery of non-audit services that leverage our technical expertise and provide added value. For a closer look at how we view and approach quality, refer to Our focus on audit quality and our Transparency Report.

“It’s great to be part of a team whose work with clients is helping to create a cleaner, more sustainable future for everyone.”Lauren Koopman, Director

Our focus on audit quality

Our third annual audit quality report continues to advance our goal of being transparent about how we deliver on our commitment to perform high-quality audits.

Read more

Transparency Report

This report describes our legal structure and ownership of the firm, the PwC Network, our governance structure, internal quality control system.

Read more

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Sharing insightsWorking with diverse clients every day, we have the benefit of thinking about business challenges and opportunities from different perspectives. Thought leadership is our way of starting a dialogue to share those insights. Whether through formal papers, articles, digital channels like our 365 app, or face-to-face interactions, thought leadership at PwC is about exchanging ideas and exploring the issues that matter most to our clients.

“There is so much expertise at PwC, and I love the challenge of making this knowledge accessible to our clients, through apps, online briefings, videos and more.”Angela Pham, Senior Associate

2013Issue 3

A quarterly journal

06The future of enterprise apps: Moving beyond workflows to mindflows

28Technologies that enable mindful apps

The future of enterprise apps: Moving beyond workflows to mindflows

Isaac SacolickCIO McGraw Hill Construction

46The mindful CIO

Can your supply chain deliver both growth and efficiencies?Highlights

Companies that excel in supply chain performance see better financial results.

Leading companies share distinct supply chain characteristics that set them apart from their competitors.

These companies mobilize their entire organizations, starting with their top management, around their supply chain strategy.

Industry leaders’ supply chain transformation initiatives are successful because these companies focus on developing capabilities and processes, which means they’re constantly improving.

Companies recognize that in today’s global economy, their supply chains are both critical to success and vulnerable to disruption. The latest research shows there is far more to the story. The recently published McGraw-Hill book Strategic Supply Chain Management, Second Edition1 provides concrete evidence that supply chain performance and financial performance go hand in hand.

A high-performing supply chain can add bottom-line efficiencies and top-line growth. That sounds like a tall order, but there are things you can do now to manage your supply chain as a strategic asset to boost performance and profitability. If you get your supply chain right, it will move your business strategy forward and set you apart from the competition.

1 The book is co-authored by Joseph Roussel, a partner with PwC France, and Shoshanah Cohen, director of the Global Supply Chain Management Forum at the Stanford Graduate School of Business.

How is your supply chain responding to these challenges?

1. Serve new customers via new channels. Companies must react to consumers’ preferences across new channels, like mobile devices. For example, offer point-of-purchase options based on personalized preferences ordered in a single touch. Increased purchasing power in emerging markets is also forcing companies to approach market segmentation differently.

2. Adjust operations for new economic trends. Changes like rising labor costs in China and the shale gas boom in the US are leading companies to rethink their manufacturing and sourcing strategies. Such shifts usually require redesigning the supplier network to ensure quality and on-time availability.

3. React quickly to disruptive events. More than 60% of survey respondents said their performance indicators, such as delivery lead times and inventory levels, had dropped by 3% or more as a result of supply chain disruptions in the past year.2 Be it the financial crisis or natural disasters, you must be able to respond to crises faster and better than the competition.

2 PwC and the MIT Forum for Supply Chain Innovation, Making the right risk decisions to strengthen operations performance, 2013.

September 2013

10Minuteson strategic supply chain management

June 2013

Sometimes it’s hard to get beyond corporate buzzwords and see opportunity. For many company leaders that’s been the case with eco-efficiency—an idea that’s been around for more than two decades. Why should you pay attention now?

Today’s economic realities continue to make cost containment a high priority. And leading companies have demonstrated that eco-efficiency works: You can contribute to the bottom line while reaching environmental goals.

Companies can save money while reducing use of energy, transportation fuel, waste, water, forest products, and chemicals. At the same time they are focusing on the customer experience, improving the workplace, and reducing risk.

As with any priority initiative, eco-efficiency starts in the C-suite. Here’s what to consider if you’re questioning how to get more from your company’s existing efforts.

Two priorities, one approach

Senior executives plan to focus on both economic and environmental issues in the coming year, according to our most recent CEO survey.1 The time is right for eco-efficiency because it can help leaders meet both goals.

1. Contain costs: Eight out of 10 respondents expect uncertain or volatile economic growth to persist, making cost containment high on the business agenda. With global demand for energy set to grow more than one-third between now and 2035, half of global CEOs (52%) say they are concerned about rising energy and raw material costs.

2. Reduce environmental impacts: 48% of global CEOs plan to increase their focus on reducing environmental impacts; 41% plan to increase their focus on measurement and reporting of sustainability and corporate responsibility performance.

Less can be more: better for the bottom line and the environment

Eco-efficiencySustainability10Minutes series

Eco-efficiency reduces costs. And there are broader benefits, too: a stronger brand, greater productivity, and mitigated risk.

The C-suite decides how a business should value its eco-efficiency opportunities.

Challenging your people and measuring what they achieve drives success. Metrics are the key to building stakeholder trust.

Refining your company’s approach can help you scale up for greater success.

Highlights

1 PwC, 16th Annual Global CEO Survey, January 2013.

CEOs on sustainable growth: Five areas of focus through 2014

PwC’s 14th Annual Global CEO Survey

www.pwc.com/ceosurvey

Good to grow 2014 US CEO Survey

17th Annual Global CEO Survey, 2014

US Report

CEOs on sustainable growth: Five areas of focus through 2014

Future of enterprise apps: Moving beyond workflows to mindflows

10Minutes on strategic supply chain management

2011Issue 4

A quarterly journal

06Sustainability: Moving from compliance to leadership

32Closing the loop on sustainability information

56The CIO’s next leadership opportunity: Sustainability

Building sustainable companies

Alan McGill Partner, Sustainability & Climate Change practice PwC

10Minutes on eco-efficiency

Annual U.S. CEO Survey

Technology Forecast: Building Sustainable Companies

Point of view: Integrated reporting: Going beyond the financial results

However you skin it, put 365 in it

Download 365™ on your iPhone or iPad today!

What matters in the boardroom?Depends on whose shoes you’re in

2013

2013 Annual Corporate Directors Survey & 2013 Investor Survey Comparison

The roles and responsibilities of board members, shareholders, and company management shape their corporate governance perspectives and observations.

Read more

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Delivering pro bonoDelivering pro bono services is an important part of how we help our communities thrive. By sharing the skills of our people, we help enable non-profits to achieve their missions and serve our communities. We provide our skills through three primary approaches: formal fee-waived engagements; loaned staff; and the time our partners and staff commit to board positions at non-profit organizations.

Hours of pro bono delivered to non-profits in FY13

FY13 pro bono hours delivered

$10 millionFY13 pro bono commitment Fee-waived projects

39,074 hours

Loaned staff 3,116 hours

Board seat participation 13,505 hours

Youth education organizations 6,662 hours

Non-youth educations 49,033 hours

$14.0 million

$14.0 million

FY13 target exceeded

“I was humbled and inspired not only by the opportunity to help provide aid to the survivors and families, but also to witness the generosity and resilience of the global community. My time on the One Fund continues to be my most rewarding experience to date, both personally and professionally. I have never been prouder to work at PwC.”

Abigail Laramee, Manager

By cause area By type

One Fund BostonIn response to the Boston Marathon bombings on April 15, 2013, PwC provided the skills of our people to work with the management of One Fund Boston to create and implement processes to responsibly and efficiently receive, track, and process donations, ultimately contributing to the collection of over $60 million in donations by June 30, 2013. We also worked with the Fund’s claims administrator to assess and categorize claims filed to efficiently and equitably distribute the donations collected for the victims and families impacted by this tragic event.

United Nations Global Compact CEO Water MandatePwC is a signatory to this global coalition for water sustainability and has made a pro bono commitment to co-lead the CEO Water Mandate’s Corporate Water Disclosure Guidelines. We are working on this project with the UN and a range of stakeholders including NGOs, corporations, and water experts globally. We launched the Exposure Draft in 2012 and are soliciting feedback for the final draft. PwC recognizes the importance of water to environmental sustainability and business continuity and we are committed to helping protect and preserve this vital natural resource.

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Public policyThrough our Office of Government, Regulatory Affairs & Public Policy (GRA&PP), we seek to play a constructive role in public policy development. GRA&PP is responsible for developing and implementing strategies to engage policymakers, government officials, and others who influence public policy. Our primary goal is to deepen understanding of the value that PwC provides to the capital markets, as well as the varied means by which we deliver our services to clients. The approach requires continual outreach and relationship development with key decision makers at all levels of government and with a broad range of interested stakeholders.

“Our team in Washington works extensively with policymakers, government officials, and others who influence public policy to deepen their understanding of the value that PwC provides to the capital markets.”Laura Cox Kaplan, Principal-in-Charge, U.S. Government, Regulatory Affairs & Public Policy

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Strategic collaborationsWe view our strategic collaborations as another important opportunity to allow our people to share insights with organizations focused on important social and environmental issues affecting the marketplace.

United Nations Global CompactAs a global network of firms, PwC has committed to upholding the United Nations Global Compact (UNGC), which outlines “10 universally accepted principles in the areas of human rights, labor, environment, and anti-corruption.” We use the UNGC as a starting point for the Corporate Responsibility section of our Code of Conduct. We also apply the UNGC framework to our purchasing practices and have embedded the 10 principles into our Supplier Code of Conduct.

World Resources InstituteThe Greenhouse Gas Protocol (GHG Protocol), a partnership between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), “provides the accounting framework for nearly every greenhouse gas standard and program in the world.” It allows government and business leaders to understand, quantify, and manage GHG emissions. We have played a leading role in the GHG Protocol Initiative and in helping to create practical guidance for organizations seeking to measure, report, and ultimately reduce their carbon footprints.

World Business Council for Sustainable DevelopmentPwC is a member of the WBCSD, a CEO-led organization of companies that works with the global business community to create a sustainable future for business, society, and the environment. Together with its 200 members and 60 national and regional network partners, the council applies its respected thought leadership and effective advocacy to generate constructive business solutions. In addition to the efforts of the Global PwC Network to support the WBCSD, the U.S. firm participates actively in the WBCSD work programs and has supported key strategic initiatives.

Carbon Disclosure Project (CDP)CDP is an international, not-for-profit organization providing the only global system for companies and cities to measure, disclose, manage, and share vital environmental information. CDP works with market forces to motivate companies to disclose their impacts on the environment and natural resources and take action to reduce them. CDP now holds the largest collection globally of primary climate change, water, and forest-risk information and puts these insights at the heart of strategic business, investment, and policy decisions. PwC was CDP’s global advisor from 2008–2013, providing advisory services for CDP’s climate change program regarding methodology, scoring of responses, developing the annual reports on behalf of CDP, and strengthening the link between business and CDP.

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Clinton Global InitiativePwC made a Commitment to Action to the Clinton Global Initiative (CGI) to address challenges in our school systems, prepare Americans to be competitive global citizens, and rethink current models that shape our economy and society. We share the CGI’s vision of inspiring, connecting, and empowering the global leadership community to find solutions to the world’s most pressing challenges. In support, PwC has pledged to contribute 1 million volunteer hours and $60 million in charitable contributions towards youth education with a focus on financial literacy.

The Clinton Global Initiative (CGI) convenes leaders to turn ideas into action. CGI Commitments to Action represent bold new ways that CGI members address global challenges—implemented through new methods of partnership and designed to maximize impact. Commitments can be small or large, global or local. No matter the size or scope, commitments help CGI members translate practical goals into meaningful and measurable results.

United Nations Global Compact CEO Water MandatePwC is a signatory to this global coalition for water sustainability and has made a pro bono commitment to co-lead the Mandate’s Corporate Water Disclosure Guidelines. We are working on this project with the UN and a range of global stakeholders including NGOs, corporations, and water experts.

Read more

Arbor Day FoundationPwC works with the Arbor Day Foundation to plant trees in our nation’s forests. We helped plant 45,000 additional trees in FY13, for a total of 185,000 trees planted since FY10. The trees we plant provide cleaner air and water, much-needed habitat for wildlife, serve as carbon sinks, and offer natural beauty for generations to enjoy.

Earth Day NetworkPwC partnered with Earth Day Network to build a collection of sustainability curricula for Earn Your Future that link environmental sustainability with financial literacy. These lessons, with grade level targets from K-12, are available free of charge for classrooms nationwide and cover topics such as recycling, water conservation, energy use, carbon credits, and green advertising methods.

26

Engaging our peopleOur people are at the heart of the firm. We want them to be engaged in everything we do.

In this sectionRecruiting talented peopleDeveloping our peopleSupporting our peopleDiversity and inclusion

Supporting our peopleDeveloping our peopleWork is a huge part of many people’s lives and by recognizing that each individual comes from diverse backgrounds, perspectives and experiences and have different career aspirations, motivations and developmental goals, we can provide an array of programs, rewards and benefits, with a focus on flexibility that demonstrate our commitment to their success.

Learning, training and coaching, including the development of cultural dexterity are all crucial parts of the PwC Experience. Our focus on leadership development, communicating with impact and the appreciation of diverse perspectives help shape the culture of our firm, allow our people to grow professionally and personally and prepare them for our increasing global client base.

FY13

2.2 millionhours of training provided to our people

9 yearsIn 2013, for the ninth year in a row, PwC was included on FORTUNE® Magazine’s list of the “100 Best Companies to Work For.”Read more

Read more

“It’s important to work for an organization that challenges you to grow in your career, but also supports you as you grow as a person.”Kimberly Liu, Senior manager

“The firm views learning as non-static events because learning happens best in the moment, on the job.”Kym Ward Gaffney, Director

Supporting our people Learning and development

“PwC is a business that’s full of great opportunities to grow your career, but it’s also deeply committed to supporting the needs and interests of our people.”Jim Flanagan, Partner

Building careers and global mobility

Hours of learning in millions

FY13 2.2

FY12 2.2

FY11 1.7

in Diversity Inc magazine’s list of Top 50 Companies for DiversityRead more

#2

Recruiting talented peopleAs a professional services organization, our people and their insights are our business and our greatest asset in delivering high quality services. We cultivate a culture that is inclusive, flexible and connected; one that attracts and retains talent that differentiates us in the marketplace and offers unsurpassed professional growth.

Read more

participation in CR activities by our people(compared with 58% in FY12)

71%

Read more

individuals – about 16% of our workforce – were promoted in FY13

4,883

Read more

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Recruiting talented peopleIn order to succeed and thrive today, and in the future, we must steadily recruit talented people. Although we frequently promote from within, we cannot meet the growing needs of our firm without a continuous drive around recruitment of both campus hires and experienced talent. We seek to identify individuals with a variety of cultural backgrounds and perspectives, as we believe individual differences and backgrounds enrich our dialogue and contribute to the strength of the firm. We look to expand our pipeline with talent that embraces responsible leadership demonstrated by an active commitment to a sustainable future for our communities and the marketplace.

We sponsor a series of programs that introduce promising young talent to our profession. Our programs provide college students with opportunities to grow professionally while simultaneously getting to know the firm. These include PwC’s Personal Brand Experience, which offers an opportunity for individuals to focus on the unique characteristics that can make them stand out from the crowd, and Explore, which introduces talented first year and sophomore college students to the accounting profession while developing their teamwork, strategic thinking, problem-solving, and leadership skills.

Colin’s story“PwC works hard to build a strong team of support around you as an intern, assigning you to an associate coach, a career coach, and a relationship partner. My summer at PwC not only made it clear to me that this is where I want to work, but also where I’m meant to work.”Colin Gerner, Intern

Over

3,200experienced hires

Nearly

9,000campus hires

Nearly

600people through acquisitions

Over

400short- and long-term assignments

Over

100new partners from outside the firm

1,000+ Interns, staff and partners have been to Belize City to lead financial literacy and entrepreneurship camps.

Of further interest PwC careers

Project Belize

28

Developing our peopleOur people – more than 39,000 in total – are our greatest strength and we want them to thrive professionally and personally. Our world-class, market-focused curriculum and development programs provide our people with the ability to broaden their knowledge through ongoing skill development and deliver added value and quality to our clients, increase their personal relevance, and position themselves for success.

100% of partners and staff in the U.S. firm are evaluated each year and receive regular performance reviews.

39,000+ people, all of whom are our greatest strength and we want them to thrive professionally and personally.

We believe that our people will do great things when given the opportunity to grow and when appreciated, recognized, and rewarded for a job well done. We are focused on an integrated approach to growth that includes experiential and formal learning and development, coaching and feedback, and opportunities to build their career.

Related links

Katherine’s story“I joined PwC from an insurance company in 2013 and what struck me immediately was that everyone obviously enjoys what they do and where they work. Things are certainly a lot different from where I’ve worked before – there’s a much more diverse range of people for a start, and I find that really refreshing. I think it’s something that can make an office so much more creative. I’m looking forward to a long career at PwC, although I admit I’ll always have one eye on opportunities to work with the firm abroad.”Katherine Netinho, Manager

Learning and development

Building careers and global mobility

29

Learning and developmentProfessional development, whether through formal learning or on the job, is an essential part of what we call the “PwC Experience.” Our approach to learning and development is based on the 70/20/10 model: 70% of job-related learning occurs at work; 20% happens through coaching and mentoring; and 10% occurs through formal curricula (online or in person). Within this model are various forms of applied learning, including diverse opportunities such as global work assignments and a robust coaching culture.

Coaching and feedback

We consider our coaching culture to be especially crucial. Providing candid, regular feedback, in formal and informal ways, is necessary to enhance one’s individual and team performance. Coaching develops our people, teaches them new skills, and creates high-performing teams who can deliver top-quality solutions to our clients and other stakeholders.

All partners and staff in the U.S. firm are evaluated each year and receive regular performance reviews, as well as coaching to help individuals maximize their future potential.

Kym’s story“What I’ve discovered at PwC is that the firm is always encouraging its employees to test things, examine them, and look for innovative and different solutions. Take my area of focus – training and development. I think the firm has consistently made investments to expand learning beyond the traditional classroom environment. The virtual nature of learning complements our coaching culture because ultimately each of us is responsible for our own development.”Kym Ward Gaffney, Director

increase in virtual sessions from FY12 to FY13.

virtual sessions completed in FY13.

hours of learning completed in FY13.

28%

384,368

2.2 million

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Building careers and global mobilityAt PwC, no two career paths are alike. We provide the training, coaching, and experiences to help employees build relationships and take advantage of opportunities to shape their careers at PwC and beyond. We give our people the support they need to succeed at each level of their careers, and engage them as active participants in planning their own career paths. We have an online career site to help our people understand the wealth of career options and opportunities available to them.

Jim’s story“I’ve worked in three different PwC offices and even though I had never planned on any of those moves, it forced me to step out of my comfort zone. Looking back, each of those experiences was really important in developing both my personal and professional skills. I’m now part of the leadership team and head up Financial Services, but I also focus on my role in the community. I sit on the board of the Ronald McDonald House and it’s been really rewarding to be able to support this tremendous organization and to share that experience with my team at PwC.”Jim Flanagan, Partner

Learn what “grow your own way” means for people at PwC.

of international PwC partners and staff who took on long-term assignments in one of our U.S. offices came from emerging countries.

54%

Global mobility

Global mobility supports our goal to create a workforce that is adept at adjusting to cultural differences, and is able to respond to the needs of our clients and market opportunities around the world. Our global mobility strategy is focused on supporting the needs of emerging countries and providing our people with distinctive developmental experiences to grow their careers. During FY13, over 700 U.S. firm partners and staff embarked on an international assignment.

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Supporting our peopleWe believe our people are the most important element in our success as an organization, and we have created a number of programs designed to support them throughout their careers. Whether that be by providing enriching work experiences, supporting flexibility, connecting through affinity groups, providing opportunities to serve our communities in a variety of capacities, or offering a menu of rewards and benefits, we aim to show our people that we are invested in their success. And we know that when we celebrate the power of our collective differences, we enrich our dialogue and contribute to the strength of the firm. And it doesn’t stop when our people leave the firm; we also support our growing alumni community with training, events, and other resources. We also offer programs such as our Flexibility2 Talent Network, which provides alumni and experienced talent with an attractive option to work for PwC a few months a year while pursuing other interests for the remainder of the year.

The PwC Charitable Foundation provides yet another support system for our people.

In 2013, for the ninth year in a row, PwC was included on FORTUNE® Magazine’s list of the “100 Best Companies to Work For.”

Read more

“I cannot think of a more wonderful benefit than my ability to work from home a few days a week. When my workday is done, I shut down, close my office door, start dinner, and spend the extra time with my family.”Karen Lehn, Manager

One of our Corporate Responsibility (CR) goals is to have 100% of our people participate in CR activities each year. We’ve learned that those who are engaged in giving back have longer tenure with the firm and higher job satisfaction overall. During FY13, 71% of our people participated in CR activities.

Flexibility Compensation and benefits

Our alumni

32

FlexibilityWhile we will always make high quality client service our top priority, our partners and staff have told us we need to do a better job of changing our mindset and enhancing everyday flexibility for our people. Although formal flexible arrangements are not practical options for everyone, everyday flexibility applies to nearly all of our people. Individuals and teams are encouraged to have a conversation around what’s important to each of them personally and find ways to accommodate each other’s priorities in and outside of work. It’s important to keep in mind that enhancing flexibility is not necessarily about working less – it’s about working differently.

Teams entered our plan2flex (flexible working initiative) contest, with 36 winners and 83 runners up.

Kimberly’s story“Life is constantly changing and it is during those times of transition that we need the most support. At 22, while I was figuring out ‘what I want to be when I grow up,’ I was able to, with the support of my team, work part-time to finish my graduate degree. At 27, when I was ready for a career change, a mentor at PwC helped me to find the right path. And then, at 31, I took extended maternity leave after having my first child.”Kimberly Liu, Senior manager

In support of our focus on flexibility, we deployed several new technologies in FY13, including new mobile apps designed to enable greater flexibility and productivity in our work. We incentivized our people to embrace our efforts and held a contest called “plan2flex,” which awarded prizes to teams that developed and executed plans for greater flexibility. More than 1,800 teams from across the firm entered, with 36 winners and 83 runners up. The contest touched nearly half of our people.

Over two-thirds of our people are satisfied with our efforts to actively plan and coordinate with their teams to implement flexibility.

67%

1,800

Of further interest PwC’s Flexibility2 Talent Network™

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Compensation and benefitsAs part of our commitment to transparency, PwC communicates the competitiveness of an employee’s salary, how pay is determined, and what the potential career-earning opportunities are for each individual. We provide employees with a competitive package through a combination of salary, bonus opportunities, milestone and recognition awards, non-monetary awards, and health and financial benefits. Quarterly financial updates at a firmwide level provide staff with greater visibility into the linkage between pay and performance, and allow them to track their progress toward annual performance bonus targets.

Career Milestone Awards

Our Career Milestone Awards recognize employees’ sustained efforts and contributions at various stages of their careers. These awards include a unique leadership development experience for new senior associates, a significant financial bonus for new managers over and above their annual incentive compensation, and a paid sabbatical leave of up to four weeks for new senior managers and directors.

“This program is much more than a reward for being promoted. It’s a life-changing experience that will influence the way you think and act. The value I received from this trip is not something I could buy with a bonus or replicate on a vacation.”Discover participant

Discover

Discover is a developmental leadership experience that serves as the milestone reward for our newly promoted senior associates. It’s about self-leadership and personal accountability. In its second year, Discover has impacted over 3,300 senior associates’ lives and has grown its network of support champion partners to 300+ strong.

“Since I started with the firm, I have been impressed that PwC has created a compensation system that not only promotes longevity with the firm, but also encourages balance and a healthy lifestyle.”

Derik Kumagai, Associate

26,000 Staff participated in our Well-Being Rewards in FY13.

$5.7 million redeemed through the Well-Being Rewards program in FY13.

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FY11

58%FY12

65%FY13

68%

Health and wellness

The health and financial well-being of our partners and staff is an integral part of our people strategy. We reinforce personal responsibility as a key component of well-being and we want our people to be actively engaged in managing their own health. The cornerstone of our health care focus is our annual physical benefit, which provides comprehensive physical exams free of charge each year for staff enrolled in a PwC medical plan option through a premier preventive care provider.

Our Well-Being Rewards program incentivizes our people to make health and well-being, as well as responsible behaviors, a priority. Employees earn points for doing things such as exercising, undergoing routine medical exams, volunteering, or using public transportation, which can be redeemed for gift cards or charitable donations. Each point earned equates to $1 in value.

Staff who participated in Well-Being Rewards

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“When I left the firm in 2002 to pursue other opportunities, I remained in touch with my PwC colleagues. Such personal connections are fundamental to the alumni network – and they are what brought me back to PwC ten years later.”Carol Sawdye, Chief Financial Officer

Our alumniThe support we provide our people does not end when they move on to new opportunities outside of PwC. These staff and partners made valuable contributions to both our culture and our business, and we seek to maintain strong connections with them through our PwC Alumni Network. We provide our alumni with technical training, networking events, and career services, as well as access to firm publications and other resources.

PwC’s alumni magazine ‘Keyword’Keyword magazine is the flagship publication of PwC’s Alumni Network and is published semi-annually. Each issue focuses on an industry or theme and highlights the stories, experiences, and insights of our alumni who work in that field. Our alumni pursue a variety of professional and personal paths after PwC; the magazine’s articles are as diverse as the people we feature.

95,000+active alumni.

~46,000alumni receive our monthly email newsletter and bi-annual magazine.

Of further interest PwC Alumni Network

PwC’s Flexibility2 Talent Network™

36

Diversity and inclusionIn a global business environment, diversity of thought and cultural diversity are enormously important. We believe individual differences and backgrounds enrich our dialogue and contribute to the strength of the firm. We aim to attract, develop, and advance the most talented individuals, regardless of race, gender, sexuality, or other dimensions of diversity, while building cultural dexterity for all. Retaining a diverse population throughout our ranks is equally important and we believe providing training and tools to increase awareness and understanding of differences and why they matter is an essential part of our efforts.

in Diversity Inc magazine’s list of Top 50 Companies for Diversity.

“Diversity is about working to understand our differences and help each other succeed. Together, we leverage the power of our differences to bring the best solutions to all our stakeholders.”Maria Moats, Chief Diversity Officer

#2

Leveraging the power of our differences

This booklet explores why diversity matters, how inclusion inspires innovation and the role each of us plays in shaping the culture of our firm.

Read more

Of further interest Diversity at PwC

FY11

46%FY12

45%FY13

45%

FY11

27%FY12

28%FY13

29%

Female

Male

Diverse workforce

Female workforce FY11–FY13

Diverse workforce FY11–FY13

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Impacting communitiesWe are committed to making an impact in the communities where our people live and work and the organizations and causes that matter most to our partners and staff.

In this sectionEarn Your FuturePwC Charitable FoundationOur collective efforts

Value of grants available through our Dollars for Doers program for PwC staff who volunteer their time with a non-profit organization meaningful to them

given by the Foundation to more than 300 PwC people who were impacted by Hurricane Sandy

$2,500$750,000

Earn Your FutureThrough our five-year commitment, Earn Your Future, we are addressing the social issue of youth education in America. By encouraging our employees to share their skills and talents in the classroom, we are contributing to the development of healthy financial behaviors for our youth.

Our five-year commitment to youth educationRead more

Read more

Read more

Progress toward our goalsDeliver 1 million service hours

FY13 FY17

Impact 2.5 million students and educators

FY13 FY17

Give $60 million in charitable donations

FY13 FY17

Earn Your Future

1,000+partners, staff and interns have taught financial literacy and entrepreneurship to students, teachers, principals and parents in Belize city

PwC Charitable Foundation

$5.1 milliondonated to our communities by the PwC Charitable Foundation in FY13

Our collective efforts

90%increase in the number of volunteer hours our people gave since FY12

Kate Hannah, Director

Our collective efforts

$11.4 millioncontributed by our people in FY13

Read more

PwC Charitable FoundationThe PwC Charitable Foundation – powered by the knowledge, interests, and goodwill of the people of PwC – supports our people when in need and invests in emerging solutions to society’s greatest challenges in education and humanitarianism.

$50 millionOur growth goal for the PwC Charitable Foundation by FY16

Progress toward our goal

Read more

FY13 $19.4m

FY12 $14.3m

FY11 $10.5m

Progress $50 million growth goal

We encourage our people to share their skills, expertise, and dollars through our firm-sponsored programs, offering time to volunteer and providing easy ways to donate online.

Educators and administrators sponsored by PwC through our Knowledge@Wharton program

360+

Read more

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Earn Your FutureAs a firm, our collective skills and knowledge around math and financial literacy give us an opportunity to better prepare our nation’s youth to make responsible decisions, be productive citizens, and contribute to a healthier economy. This is why we focus on youth education and, more specifically, financial literacy. In 2012, we launched PwC’s Earn Your Future (EYF) – a $160 million commitment – enabling our 39,000 people to share their time, skills, and talents to impact the next generation of leaders. Our goal is to provide 1 million service hours and reach more than 2.5 million students and educators over five years.

Earn Your Future commitment

Progress toward our EYF goals

“I think it’s incredible that our retired partners seek to participate in our corporate responsibility efforts. Their involvement is a great reminder of the strong culture we have as a firm.”

Gary Price, Chief Administrative Officer and Partner Affairs Leader

30 local schools in Belize City have benefitted from our financial literacy and entrepreneurship camps.

$60 million

1,000,000

2.5 million

Cash

Service hours

Students and educators

FY13

Students and educators reached in FY13

2.5

1.00.5 1.5 2.52.00

million

Students and educators

Financial contributions in FY13

60

10 20 30 40 50 600

$ millions

Cash donations

Service hours delivered in FY13

1,000,000

500,000250,000 750,000 1,000,0000

hours

Volunteer hours Pro bono hours

Project Belize

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Youth education continuum

EYF service hours commitment in FY13

Service hours delivered 142,752

Pro bono 6,662

Total service hours and pro bono 149,414

Service hours commitment 1,000,000

Students and educators reached in FY13

Students and educators 518,000

Student and educator impact commitment 2,500,000

Financial contributions in FY13

Cash donations $16,000,000

Cash donations commitment $60,000,000

In assessing the youth financial literacy crisis in our country, we have come to realize that some of the most prevalent underlying issues stem from a lack of core curriculum and resources in low-performing schools. We direct our efforts at all points in the learning continuum, collaborating with select non-profit organizations along the way. We have also created our own free financial literacy curriculum, to provide much needed curricula and resources to make it easier to teach these critical skills.

Our youth education efforts are supported, in part, by the following organizations: Clinton Global Initiative, Junior Achievement, The First Tee, DonorsChoose.org, MIND Research Institute, United Way, Peacework, and Knowledge@Wharton High School.

Related links

Student programs Educator programs

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“I think the firm’s commitment to raising a smarter, savvier next generation is awesome.”

Kate Hannah, Director

Student programsAs part of Earn Your Future, PwC has developed programs that focus on youth education.

Project Belize

Project Belize is an innovative program designed to address social and economic challenges by integrating financial literacy and entrepreneurship into the school curriculum. Since 2008, we have sent more than 1,000 partners, principals, staff, interns, and retired partners to Belize City – a city challenged by incredible poverty and an overcrowded educational system – to lead financial literacy and entrepreneurship camps at 30 local schools.

High School Business Challenge

It’s a rare experience when high school students are given an opportunity to win $40,000 for their schools and iPads for themselves by creating the winning business plan for a record label. But that’s exactly what the 650 students and 14 teachers who participated in PwC’s High School Business Challenge had the chance to do with the help of more than 60 dedicated PwC mentors and team leaders.

27financial literacy curriculum modules available for use, free of charge.

Read more

Engaging our people Teaching the teachers Teaching entrepreneurship

At the Challenge recognition luncheon on February 28, PwC presented the grand prize of $40,000 from the PwC Charitable Foundation to the Riverview High School team to help enhance financial education at their school.

(L to R): PwC Advisory Partner Lindsey Jarrell, PwC Tampa Managing Partner Mike Quackenbush, student Tyliah Williams, student Cherrell Campbell, student Chad Rivera, teacher Nancy MacLauchlan and Principal Bob Heilmann.

PwC people acted as mentors and team leaders for students competing in the High School Business Challenge.

60

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Educator programsAs part of Earn Your Future, PwC has also developed programs to give educators the tools they need to teach financial literacy.

Knowledge@Wharton High School

PwC partners with Knowledge@Wharton High School (KWHS) to bring needed business and financial responsibility education training to high school educators across the country. This intensive learning experience allows educators to deepen their knowledge and teaching skills about financial literacy and business to take back into their classrooms. In FY13, PwC sponsored 360 high school teachers, principals, administrators, and superintendents from public and private schools across the country for the seminar.

Financial Literacy Award

In FY13, PwC launched the Financial Literacy Award, which recognizes the achievements educators have made in preparing their students to make responsible financial decisions by bringing financial education to life in the classroom.

“It was an exhilarating and exhausting weekend, but one which we have greatly benefited from. I look forward to sharing ideas from the seminar with colleagues, as well as working to strengthen and enhance our existing curriculum with lesson plans and materials we received this weekend.”

Knowledge@Wharton attendee

Kathy Focht of Wilson High School, West Lawn, PA, won the competition for her lesson on “Saving Money with Mortgage Payments.”

Kathy teaches Investing, Personal Finance, Accounting I, II and IIII, International Business, and Cooperative Education.

Find out more about the Financial Literacy Award

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PwC Charitable FoundationThe PwC Charitable Foundation (the “Foundation”), an IRS section 501(c)(3) public charity, supports the people of PwC when in need and invests in emerging solutions to society’s greatest challenges in education and humanitarianism. In addition to seeking out non-profits with courageous breakthrough ideas, the Foundation is aligned with the firm’s efforts to engage the people of PwC, offering partners and staff a flexible set of opportunities to create value for their communities and for each other.

Foundation grant giving since 2001

Making grants during the holidays is nothing new for the Foundation, but in 2012 we asked our people to share in the gift of giving. More than 3,000 partners and staff voted in the inaugural “Foundation Holiday Poll” and helped decide how to allocate $1 million across three deserving non-profits: Feeding America ($480,000), BUILD ($280,000) and Team Rubicon ($240,000).

A new holiday tradition

Humanitarianism $6.5m

Education $9.5m

People Who Care Fund $3.4m

5.1

3.9

2.1FY11

FY12

FY13

1 2 3 4 5 60

$ millions

By cause area

By fiscal year

Education $9.5m

Humanitarianism $6.5m

People Who Care Fund $3.4m

19.4million

Foundation grant giving since 2001 ($ millions) FY11 FY12 FY13

Foundation grant giving1 2.1 3.9 5.1

Foundation grant giving 2001–20132

Education 9.5

Humanitarianism 6.5

People Who Care Fund 3.4

Total 19.4

Social entrepreneurship Dollars for Doers People Who Care Fund

Related links

1 The PwC Foundation works off a fiscal year ending September 30.2 From September 2001 through September 2013.

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Social entrepreneurshipThe Foundation invests in emerging ideas and cutting-edge non-profits that have the most potential to positively transform U.S. education, and that focus on preparedness and long-term relief in the wake of humanitarian disasters. Funded in part by generous donations from the people of PwC, the Foundation is connecting social entrepreneurs who are creating innovative solutions to world problems with PwC mentors through the Points of Light’s Civic Accelerator. Along with the Starbucks Foundation, the PwC Charitable Foundation has invested $1.3 million in the Civic Accelerator – the first such program focused on early stage “civic ventures” or enterprises that inspire and mobilize people to create positive change.

The Foundation is also supporting Venture for America (VFA), a non-profit that recruits top-performing college grads to work for two years (as Fellows) at emerging start-ups and early stage companies in economically challenged cities, with a $500,000 grant payable over 2 years. VFA’s goal is to provide a path toward entrepreneurship and create jobs (100,000 by 2025). Its highly innovative and scalable model gets to the heart of educating young people by creating better access to employment and entrepreneurial experience/training; and preparing this talent pool to help spur job growth in the marketplace.

Of further interest Points of Light

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Dollars for DoersThrough the Dollars for Doers program, the Foundation makes grants to the charities where the people of PwC volunteer their time. Each PwC volunteer who provides at least 25 hours (and up to 100 hours) of time to support a non-profit organization that is personally meaningful can receive up to $2,500 (per person per year) for his or her charity.

Access $2,500 for charity

$500

$500$1,500

Match the money you raise when you participate in a formal race for a cause – up to $500 a year

Get a Dollars for Doers grant of $375for every 25 hours you volunteer for a charity – up to 100 hours a year

Get a $125 referral grant for telling a fellow PwC volunteerabout Dollars for Doers – up to four referrals a year

“I am proud of the record level of funds our LA PwC AIDS Walk team raised with the help of the Dollars for Doers program – we raised over $50,000!”

Allison Foote, Senior Associate

$160,372value of Dollars for Doers grants provided to 285 people in FY13 by the Foundation.

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“The storm left us in shock, dealing with issues and agencies that we’d never encountered before. The People Who Care Fund grant removed some of the stress and anxiety we were feeling by taking care of some of our immediate needs. The PwC People Who Care Fund was a life preserver in a sea of tidal waves. It set us on the right path, and we learned that PwC may be a large firm, but everyone who works here is treated as though they are family.”PwC employee, People Who Care Fund grant recipient

People Who Care FundSupporting the people of PwC in times of financial hardship through the People Who Care Fund (PwCF) has always been a unique aspect of the Foundation’s focus.

In FY13, the Board of Trustees developed two new programs specifically designed to support our people beyond hardships – but also in times of remembrance and achievement. These new programs appropriately complement the Foundation’s commitment to youth education.

Foundation Merit Scholars programThis program offers a one-time, non-renewable, $5,000 PwC Charitable Foundation scholarship to National Merit Finalists who are the children of PwC colleagues.

Partner Remembrance ScholarshipsNon-renewable scholarships of up to $150,000 to students in need are created or endowed to honor the legacy of those who pass away while they are an active partner with PwC.

Over $752,000to 314 PwC employees impacted by Hurricane Sandy.

“We’re excited and grateful the Foundation has given Pearl, my daughter, this opportunity. The scholarship is really important to Pearl, and I’m sure it will encourage her to work hard and excel at the University of Texas at Austin.”Holly Zhang, Director

$75,000in Foundation Merit Scholarships.

$150,000in Partner Remembrance Scholarships.

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Our collective effortsAt PwC, corporate responsibility is a collective effort, centered on a goal to inspire each and every partner and staff member to engage in activities that serve the communities where we live and work. While we focus our overall firm efforts on youth education, diversity and inclusion, and climate change, we also embrace the causes that are personally meaningful to our 39,000 people. We support time off for personal volunteering and provide unlimited time off for firm sponsored volunteer activities. Our people can also apply for a grant to the organizations they support through Dollars for Doers, a program supported by the PwC Charitable Foundation. We are also working to further scale our efforts around pro bono, providing even greater opportunities for more of our people to engage in skills-based efforts and in FY13, we launched a mobile site that makes it even easier for our people to sign up for CR activities around the U.S.

Our people are generous and they know that a great way to increase their impact on organizations that have special meaning to them is to combine financial support with the time and talent they contribute. It’s our goal to make it easy for our people to give when, where, and how they want by putting our online-giving site at their fingertips year round. More than 12,000 people annually use the site, selecting from over 1 million charities including the PwC Charitable Foundation and United Way. In addition, the site provides access to our Matching Gifts Program for Colleges and Universities, which doubles our people’s contributions to the institutions that are part of PwC’s college recruiting program. Data from the site enables us to demonstrate how our people’s generosity, combined with the firm’s own charitable donations, support our shared interests and multiply our impact.

10,000The number of students reached in FY13 through “Project Make it Count”, a program where 100 staff members were granted funds to support a classroom project of their choice that they helped to identify, plan, and execute.

“I love that PwC encourages us to support our local communities. This year I was part of a team that volunteered at the Houston Food Bank, which helped to feed over 19,000 households. It was such a rewarding experience!”Yolanda Thomas, Manager

“I’m inspired when teaching the EYF and Junior Achievement lessons. It’s not only fun, but rewarding to know that a small investment of my time can make a significant difference in the lives of the children.”Dory Ward, Manager

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Charitable donations

Volunteer hours

50.1

40.6

39.8FY11

FY12

FY13

10 20 30 40 50 600

$ millions

236,720

124,198

80,327FY11

FY12

FY13

0

Hours

50,000 100,000 150,000 200,000 250,000

50.1

40.6

39.8FY11

FY12

FY13

10 20 30 40 50 600

$ millions

236,720

124,198

80,327FY11

FY12

FY13

0

Hours

50,000 100,000 150,000 200,000 250,000

From our people From the firm

FY11 FY12 FY13

Charitable donations from our people $9.1m $9.9m $11.4m

Charitable donations from the firm $30.7m $30.7m $38.7m

Charitable donations from the firm and our people $39.8m $40.6m $50.1m

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Managing our footprintWe, as individuals and organizations, have a responsibility to manage our impacts on the environment, regardless of the nature or scale of what we do.

In this sectionOur environmental impactsProgress toward our goal

Carbon emissions trends FY07–FY13Our environmental impactsWe recognize that our emissions will have an impact on climate change. As we do not manufacture goods, our footprint is smaller than many other organizations of our scale; however, we believe it is still important to take responsibility for our impact, which starts with our goal to reduce our greenhouse gas emissions (or GHG).

Read more

Progress toward our goalWe set a goal to reduce our carbon footprint 30% by FY16. Our efforts thus far have helped us to exceed our goal. But merely reaching our goal is not enough. We know it is important to demonstrate our ability to sustain this level of reduction for the long term. Read more

Read more

Tracey Anchundia,Associate

50%of our office space is in buildings that are LEED-certified or have LEED-certifiedinteriors

Workspace efficiency

Managing air travel

Progress toward our goal

Green Teams

Where we work

Renewable Energy Credits

Carbon footprint per full-time employee

FY16 target 30% reduction

FY07

FY08

FY09

FY10

FY11

FY13

FY12

staff and partners are part of our Green Team network

1,600+

Read more

of the electricity in our offices came from renewable sources in FY13

100%

Read more

Composition of carbon footprint

Read more

Air travel 46%Commuting 15%

Workspace* 22%Other 17%

*100% of the energy we used in our offices came from renewable sources. We purchased renewable energy certificates (RECs) which mitigated our workspace energy use. The RECs, from wind energy projects across the country, are certified by Green-e Energy and verified by an independent third party.

59%

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Our environmental impactsAs a firm, we’re dedicated to finding tangible ways to work with our clients, suppliers, and employees to continually reduce the impact we have on the environment. We do this because we understand individuals and organizations are all responsible for managing their own environmental impacts.

Looking at our climate change risks and opportunities gives us a sound basis for prioritizing our efforts and directing them to areas that will yield the greatest improvement and meet the expectations of our people, our clients, and the communities in which we live and work.

Our corporate responsibility team works in conjunction with our internal teams in the areas of data management and sustainability strategy to set goals, track performance, and evaluate the results of our environmental management approach. We evaluate performance relative to our goals and metrics at least annually, and regularly implement changes to enhance our processes, including improving the reliability of our data.

Related links

Managing air travel

Progress toward our goal

Workspace efficiencyWhere we work

Green teams

“This past year, I was part of the Green Challenge where teams competed to find ways to make our offices more sustainable. It is exciting and empowering to know that the Green Teams are helping the firm do more with less, in innovative ways.”

Paul Sacca, Associate

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Progress toward our goalWhen we conducted our first carbon footprint analysis in FY07, we began our process to define, measure, and manage our carbon footprint. We did this by applying the WRI/WBCSD Greenhouse Gas (GHG) Protocol and estimating our emissions comprehensively across a range of activities, including our office operations, and employee travel and commuting, which collectively constituted 83% of our footprint in FY13. Based on this work, we set a carbon reduction goal and developed programs to cut our GHG emissions 20% by FY12, compared to an FY07 baseline. In FY11 we reached our reduction goal ahead of schedule, and committed to reducing our carbon footprint an additional 10% by FY16, for a total of a 30% reduction in absolute terms.

PwC U.S. carbon footprint FY07 to FY13Total GHG emissions and GHG emissions per full-time employee

Progress toward our carbon reduction goal

30%PwC U.S. has a goal to reduce our carbon emissions 30% by FY16, compared to an FY07 baseline.

Met

ric t

ons

CO

2e

FY07

Target = 30% reductioncompared to FY07 baseline

Absolute Greenhouse Gas Emissions (GHG) including RECs

RECs

Greenhouse Gas Emissions (GHG)Per Full Time Equivalent (FTE) excluding RECs

0

50,000

100,000

150,000

200,000

250,000

300,000

FY08 FY09 FY10 FY11 FY12 FY13

9.5

8.9

7.47.2 7.3

7.0

4.9

FY16 target30% reduction

FY070

100,000

150,000

200,000

250,000

300,000

FY08 FY09 FY10 FY11 FY12 FY13

Commute

Workspace

Workspace energy consumption mitigated by RECs

Air travel

Other

Met

ric t

ons

CO

2eM

etric

ton

s C

O2e

FY07

Target = 30% reductioncompared to FY07 baseline

Absolute Greenhouse Gas Emissions (GHG) including RECs

RECs

Greenhouse Gas Emissions (GHG)Per Full Time Equivalent (FTE) excluding RECs

0

50,000

100,000

150,000

200,000

250,000

300,000

FY08 FY09 FY10 FY11 FY12 FY13

9.5

8.9

7.47.2 7.3

7.0

4.9

FY16 target30% reduction

FY070

100,000

150,000

200,000

250,000

300,000

FY08 FY09 FY10 FY11 FY12 FY13

Commute

Workspace

Workspace energy consumption mitigated by RECs

Air travel

Other

Met

ric t

ons

CO

2e

Composition of our carbon footprint

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Area FY07 FY08 FY09 FY10 FY11 FY12 FY13

Air travel 110,000 90,559 71,237 70,222 78,940 108,617 111,657

Commute 85,165 83,079 68,968 67,268 71,977 81,791 36,527

Workspace 52,389 56,153 49,144 52,435 52,854 52,648 52,763

Other 46,004 43,716 42,068 37,273 39,545 40,435 42,127

Total CO2e (gross of RECs)

293,558 273,507 231,417 227,198 243,316 283,491 243,074

RECs 0 0 0 0 0 26,324 52,763

Total CO2e (net of RECs)

293,558 273,507 231,417 227,198 243,316 257,167 190,311

CO2e per FTE 9.5 8.9 7.4 7.2 7.3 7.0 4.9

Progress to goal bar graph

All of the energy we used in our offices in FY13 came from renewable sources. We purchased renewable energy certificates, which mitigated our workspace energy use. This and other efforts have helped us to exceed our FY16 goal. But merely reaching our goal is not enough. We know it is important to demonstrate our ability to sustain this level of reduction for the long term. The challenge ahead is to manage our carbon emissions as the firm increases the overall numbers of partners and staff to meet the needs of our clients. In addition to our focus on absolute carbon reduction, we also continue to monitor our emissions by full-time employee. Since our initial measurement in FY07, we have reduced our emissions per employee by 49%.

To stay on track in terms of our 30% reduction goal, we are continuing to build on our environmental strategy with a variety of approaches, including exploring ways to manage our air travel, being flexible in where we work, improving the efficiency of our offices, and leveraging the enthusiasm of our Green Teams.

PwC U.S. carbon footprint compositionBreakdown by major emission category

PwC U.S. carbon footprint by scopeScope 1, 2, and 3 emissions

Commuting 15%

Air travel 46%

Workspace 22%

Other 17%

Scope 2 Electricity 52,763

Scope 1 Diesel 97

Scope 3 Air, commute, reimbursed miles, other 190,214

Metric tons of CO2e

Commuting 15%

Air travel 46%

Workspace 22%

Other 17%

Scope 2 Electricity 52,763

Scope 1 Diesel 97

Scope 3 Air, commute, reimbursed miles, other 190,214

Metric tons of CO2e

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More on our carbon footprint

1. Our GHG footprint is calculated using a detailed and documented methodology. We use the following standards in calculating emissions, as relevant:

• Greenhouse Gas Protocol • U.S. Environmental Protection Agency • U.S. Energy Information Administration Commercial Buildings Energy Consumption

Survey (CBECS) • Environmental Defense Fund Paper Calculator • Defra/DECC These standards include assumptions about the composition of GHGs in various kinds

of emissions. While the vast majority of our GHG emissions are CO2, our calculation also includes other GHGs, for example, from car and bus exhaust. We report in CO2e, which accounts for these other GHGs. We do not have any biogenic emissions.

2. The baseline year for our GHG footprint is FY2007, which corresponds to the expansion of our corporate responsibility efforts and focus on reducing our environmental footprint.

3. We consolidate our emissions calculation based on operational control within the United States.

4. Our GHG footprint calculation includes the WRI/WBCSD Scopes 1, 2, and 3 as described below. Our GHG intensity ratio calculation includes Scopes 1, 2, and 3. The denominator is full-time equivalent employees (FTE), a measure of the number of people we employ. As a professional services firm, our emissions are driven by the activities of our employees in the delivery of their professional duties, so this is the most relevant factor by which to normalize our emissions.

Scope 1: We have very limited direct (Scope 1) emissions, which are related to the use of diesel fuel for backup generators.

Scope 2: Our Scope 2 emissions are those related to energy consumption in our workspaces. We currently include all U.S.-based operations. We lease nearly all of our workspaces and our energy use is most often embedded into the overall operating expenses of our leases. In cases where we have energy meters in our leased spaces, they typically measure energy used for lighting, plug loads and computer room heating, ventilation and air conditioning (HVAC), but miss the significant energy used to heat and cool our spaces. We are working to determine the best mix of submetering solutions and lease provisions we can employ to generate data more useful to our efficiency efforts, but in the interim we use Energy Information Administration’s (EIA) 2003 Commercial Buildings Energy Consumption Survey (CBECS) and Egrid to determine our indirect energy use.

As part of an integrated strategy to reduce our GHG emissions, 100% of the energy we used in our offices in FY13 came from renewable sources. We purchased renewable energy certificates (RECs) for 110,643 MWh, which lowered our overall CO2 emissions from 243,074 to 190,311. The RECs, from wind energy projects across the country, are certified by Green-e Energy and verified by an independent third party.

Scope 3: Our estimate encompasses the following:

• Air travel: Carbon emissions from fuel consumption related to commercial airline flights, including domestic travel and international travel to move PwC U.S. employees point-to-point. Total carbon emissions for each flight are calculated based on the equipment type flown, fuel burn rates and total flight mileage. The flight’s total carbon emissions are then divided between passengers and cargo and allocated to each seat using the seating configuration of the flight. First and business class seats are allocated a higher proportion of the emissions to reflect the increased seat size.

• Employee commuting from personal cars and mass transit: Fuel consumption used by PwC U.S. employees traveling from home to our offices, based on responses to a voluntary survey of PwC employees. In FY13, we collected refreshed data from 24% of our partners and staff.

• Reimbursed miles: Carbon emissions from fuel consumed by PwC U.S. employees traveling for business purposes using personal cars.

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• Paper in workspace: Carbon emissions from energy consumed in manufacturing, distribution, use, and disposal of paper used in PwC U.S. offices and data centers.

• Toner cartridges: Carbon emissions from energy consumed in the manufacturing, distribution, use, and disposal of toner cartridges used in PwC U.S. offices and data centers.

• Other: Carbon emissions of PwC U.S. employees associated with categories that are tied to air travel and FTE. This category consolidates the following activity types which collectively constituted < 10% share of overall emissions between FY07–FY10.

• Emissions Associated with Air Travel: • Auto Travel: Rental Cars • Hotels: Transient • Hotels: Group • Meetings: Hotels • Emissions Associated with FTE: • Auto Travel: Black/Town Cars • Meetings: Alternate Venues • Meetings: Transportation • Paper: Printed Materials • Mass Transit: Buses • Mass Transit: Taxes • Mass Transit: Trains

5. In FY11 we reviewed the first four years of results and concluded that 13 of the items we calculate (called “other” in our charts) had a cumulative impact of approximately 10% of our footprint. We therefore decided not to calculate an actual footprint for these items every year, but rather estimate them based on past actual measurements. Instead, every four years, we recalculate a footprint for the 13 items, at which point we will determine whether there has been a change in their relative impacts and therefore a need to refocus. This approach allows us to direct our efforts to the most significant drivers of our footprint.

6. As a firm that provides audit and assurance services, we recognize the pivotal role that auditing can play in not only ensuring the reliability and credibility of data, but also in the learning and continual improvement that is the result of audit processes. For both of these reasons, we partner with our U.S. Sustainable Business Solutions practice to review our carbon footprinting methodology and results. This process allows us an opportunity to share leading practices and refine our strategy.

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Air travelThere is no question that travel is an essential part of serving our clients. Our approach to air travel is to look for ways to be smarter about when and where we travel, and encourage our staff to find alternatives when it makes sense. For example, we ask our people to consider whether they could combine trips, or even eliminate some trips and substitute meetings by videoconference.

As the chart below shows, our air travel declined significantly during the economic downturn and as we introduced virtual collaboration technology. However, when air travel began to rise in FY11 we revisited our strategy. The downward trend in tonnes per full time equivalent (FTE) between FY12 and FY13 is a positive sign our renewed strategy is working, but we will continue to monitor this area carefully and adjust as we learn which actions are having the greatest impact.

Air travel emissions FY07 to FY13

Met

ric t

ons

CO

2e

FY07

Air travel total

Air travel per Full Time Equivalent

0

40,000

80,000

120,000

FY08 FY09 FY10 FY11 FY12 FY13

3.6

3.0

2.32.2

2.4

3.02.9

FY07 FY08 FY09 FY10 FY11 FY12 FY13

Metric tonnes CO2e

110,000 90,559 71,237 70,222 78,940 108,617 111,657

Metric tonnes CO2e per Full Time Equivalent (FTE)

3.6 3.0 2.3 2.2 2.4 3.0 2.9

45,000 treesSince 2009, we have committed to planting five trees for every videoconference held by our people. During FY13, we planted 45,000 trees, 21,535 of which were for 4,307 videoconferences held by our partners and staff.

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Where we workThe workspace of today is no longer tied to a particular office or cubicle. Changing how we think about the “office” provides our people with the flexibility to work in the way that makes the most sense for them, their teams, and their clients – whether that is in the office, at a client site, or remotely. This, in turn, directly impacts where we choose to work and how often we commute to the office.

Commuting

While many companies feel employee commuting is “out of scope,” meaning beyond their control and therefore not part of their footprint, we have embraced it as a challenge and use it as an opportunity to encourage our people to find efficient ways to get to work and, where appropriate, consider working remotely. We help our people improve the efficiency of their commutes through several approaches, including mass transit subsidies and carpool “matchmaking.”

Commuted miles by transportation typeAs reported in the FY13 Commuter Survey

During FY13, we conducted a survey of our people and found they commuted to PwC offices, on average, 2.9 days a week, compared to 4.5 days a week in our previous survey in 2009.

Not only are they commuting to the office less, many of our people have also changed the way they commute – shifting away from driving and instead taking public transportation, biking or walking. Commuting emissions now total 15% of our footprint, compared to 30% in 2009.

Train/Subway 36%

Drive alone 48%

Bus 10%

Other 1%

Carpool 5%

Flexibility

Being flexible in when and where we work is a priority for our people and an important part of our overall Flexibility2 strategy. We support telecommuting with technology that allows our people to securely connect to our information systems remotely. This approach has multiple benefits for our employees and the environment by cutting the cost, emissions, and time involved in commuting; it also helps us attract and retain the best and the brightest, furthering our competitive advantage in the marketplace.

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Workspace efficiencyOur biggest opportunity to increase our workspace efficiency is to literally take up less space per person. For a growing firm, this comes down to doing more with what space we already have. Over the past year, despite adding employees, we have kept the amount of our office space constant and reduced the square feet per employee. This decoupling is critical as we seek to both limit our environmental impact and grow our business.

Comparing average square footage and average Full Time Equivalent workforce

4,800

4,600

5,000

5,200

5,400

5,600

5,800

33

32

FY11

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Making the best use of our space

Our hoteling system allows access to office space when it’s needed and frees up that space when it’s not. Accessible from smart phones, PwC laptops, and office kiosks, staff can quickly and easily shift between working at the office, at a client site, or remotely. We have also deployed a new workspace design in several offices that not only improves collaboration, but also makes better use of the space, all while providing employees with a productive environment.

Percentage of LEED-certified square footage

FY11 FY12 FY13

Average square footage of our office spaces 4,648,748 5,173,864 5,283,355

Average Full Time Equivalent (FTE) workforce 31,983 34,545 37,580

FY11 FY12 FY13

Percentage of LEED-certified square footage 38% 44% 50%

100%As part of our integrated strategy, we also work to drive efficiencies where and when we can and buy renewable energy credits (RECs) to cover 100% of our workspace energy use.

50% LEED-certifiedWe are committed to partnering with companies that use sustainable building practices, including certification by the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) program. In FY13, over 50% of our office spaces were in buildings that are LEED-certified or have LEED-certified interiors.

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Materials and waste

Beyond the space we occupy, it is also important to consider the materials we use and the waste we create. We have invested in several programs that make it easy for our people to use less and recycle more. Print Smart automatically helps our employees to print using less paper; Smart Call makes it easy to recycle phones and other small electronics; and TechTurn ensures that our laptops are properly refurbished or recycled. In addition, each year we conduct a firmwide File Clean-Up Week to ensure all old materials are both securely disposed of (shredded) and recycled.

Green TeamsEmployee participation is critical to reaching our carbon reduction goal, as a majority of our emissions relate to air travel and commuting, factors that employees can influence. Our network of Green Teams – with representation in each of our markets – drives our broad environmental stewardship strategy at the individual, office, and market level.

Each year, we hold the Green Challenge to equip and empower our Green Teams to build a broader network, engage with local staff, and work with their local offices to find opportunities for change. The spirit of interoffice competition inspires new ideas that address energy consumption, waste reduction, and community outreach.

79%Our most recent employee survey showed that 79% of our employees are satisfied with our environmental performance, an increase of five percentage points since FY11.

1,600+Staff and partners are part of our Green Team network.

Trees for Threes

The Green Teams in Dallas and New York Metro have partnered with the NBA teams in their cities through a program called Trees for Threes. For every three-point shot the team scores at home, PwC plants a tree in one of the city’s local parks.

In 2013, the New York Knicks earned 1,000 trees for their home city, 309 trees were planted thanks to the New Jersey Nets and, through the on-court efforts of the Mavericks, an additional 277 were planted in Dallas.

FY131,586trees planted

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FY11* FY12 FY13

Pro bono value delivered ($ millions) NA 3.8 14.0

Pro bono hours delivered NA 21,744 55,695

Pro bono hours delivered by cause area

Youth education NA 0 6,662

Non-youth education NA 21,744 49,033

Pro bono hours delivered by type

Fee-waived projects NA 21,513 39,074

Loaned staff NA 216 3,116

Board seat participation NA 15 13,505

FY11 FY12 FY13

Workforce totals 33,216 37,202 39,317

Partners and principals 2,390 2,576 2,679

Staff and interns 30,826 34,626 36,638

Male workforce 17,844 20,278 21,513

Female workforce 15,372 16,924 17,804

Diverse workforce 9,076 10,505 11,400

Full Time Equivalent (FTE) workforce 32,562 36,528 38,631

Part time workforce 654 674 686

% of people promoted 18% 17% 16%

% of new hires – female 44% 44% 45%

% of new hires – male 56% 56% 55%

% of new hires – diverse 31% 33% 33%

Number of Continuing Professional Education (CPE) credits (in millions)

1.9 2.4 2.5

Total number of new and experienced hires 9,200 11,978 12,035

Number of virtual sessions completed 316,600 299,869 384,368

Number of hours of learning provided (in millions) 1.7 2.2 2.2

Building Trust

Engaging our people

Key performance indicators

*Measurement of our pro bono activities commenced in FY12.

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FY11 FY12 FY13

Area (metric tons CO2e)

Commute 71,977 81,791 36,527

Workspace 52,854 52,648 52,763

Air travel 78,940 108,617 111,657

Other 39,545 40,435 42,127

Absolute Greenhouse Gas Emissions (GHG) excluding RECs (metric tons CO2e)

243,316 283,491 243,074

RECs (metric tons CO2e) NA 26,324 52,763

Absolute Greenhouse Gas Emissions (GHG) including RECs (metric tons CO2e)

243,316 257,167 190,311

Greenhouse Gas Emissions (GHG) Per Full Time Equivalent (FTE) including RECs

7.3 7.0 4.9

Managing our footprint

FY11 FY12 FY13

Total charitable contributions from the firm ($ millions) 30.7 30.7 38.7

Youth education charitable contributions ($ millions) NA 13.5 16.0

Total charitable contributions from our people ($ millions) 9.1 9.9 11.4

Total volunteer hours 80,327 124,198 236,720

Youth education volunteer hours NA 27,165 149,414

PwC Charitable Foundation grants ($ millions) 2.1 3.9 5.1

Impacting communities

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Contact us

Shannon Schuyler U.S. Corporate Responsibility Leader

Email