OUR CORPORATE RESPONSIBILITY VISION
COMMUNITY
ESSENTIALS
FINANCIAL
ESSENTIALS
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MCGRAW HILL FINANCIAL: OUR CORPORATE RESPONSIBILITY VISION
MHFI SNAPSHOT
Headquarters
New York City
95 30
offices
INTRODUCTION
OUR BUSINESS:
ESSENTIAL INTELLIGENCE
LETTER FROM OUR CEO
McGraw Hill Financial (MHFI) is the world’s foremost provider
of ratings, benchmarks and analytics in the global capital and
commodity markets. Our iconic brands provide investors,
analysts, industry leaders and others with essential insights
and information, acting as a catalyst for sustainable growth
worldwide and fostering transparency in financial markets.
WHAT MAKES A COMPANY
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tandard & Poor’s Ratings Services helps investors and
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market participants manage risk through credit ratings,
research and analytics.
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inancial professionals turn to S&P Capital IQ for
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high-value content across all asset classes.
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I nvestors use the S&P 500, Dow Jones Industrial
Average and thousands of other indices produced by
S&P Dow Jones Indices across asset classes to
measure and monitor global markets.
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raders, risk managers, analysts and industry leaders use
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Platts’ price assessments and insights to enable informed
decision making across energy, petrochemical, metals
markets and agriculture markets.
countries
Close to
18,000
employees worldwide
FAIRNESS, INTEGRITY
AND TRANSPARENCY
We are a leading ratings, benchmarks and
analytics provider serving the global capital,
commodities and commercial markets.
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ompanies from more than a dozen industries turn to
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J.D. Power’s quality and customer satisfaction research
for actionable consumer insights to help produce better
products and services.
RESPONSIBLE? WE BELIEVE IT IS
AN UNSHAKEABLE COMMITMENT
TO FAIRNESS, INTEGRITY AND
TRANSPARENCY.
These values inform the business decisions our employees
around the world make every day. They also drive
McGraw Hill Financial’s new Corporate Responsibility
vision and strategy.
Built around the twin pillars of Financial Essentials
and Community Essentials, the strategy is designed to
maximize our contribution to global society and the natural
environment we all share. It also aligns our Corporate
Responsibility activities more closely with our business
objectives – and for good reason.
Our goal is to create opportunity and build communities
around the world. We seek to deliver sustainable growth
with unique solutions, insights and analytics that provide our
customers and other stakeholders with essential intelligence.
This is true whether we are providing information to
investors about oil company credit risks related to climate
change or to veterans on using credit wisely.
The success of our businesses and our CR activities
depends on our talented and committed employees who
care deeply about making a difference – in our markets
and in our world.
From Mexico City to Mumbai, we seek to deliver Financial
Essentials and Community Essentials for all our stakeholders.
We welcome your feedback at [email protected].
About this brochure
Our Corporate Responsibility (CR) Vision introduces
McGraw Hill Financial’s new CR strategy and places it
in the context of our business. For more detail on our
CR policies and programs, and associated data, see our
latest Corporate Responsibility Report, available at
www.mhfi.com/corporate-responsibility.
Douglas L. Peterson
President and Chief Executive Officer
McGraw Hill Financial
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MCGRAW HILL FINANCIAL: OUR CORPORATE RESPONSIBILITY VISION
OUR STRATEGY:
CREATING OPPORTUNITY,
BUILDING COMMUNITY
OM Y
M
PIT
AL
CA
OF
GTH
CON
We believe everyone benefits from this responsible approach
to doing business – our brands, shareholders, employees,
suppliers, communities and the wider society.
A
EE
warding innovative grants that promote financial
A
capability and education with an emphasis on micro
and small enterprises.
EL
LE
NC
E
ITY ESSEN
V I TA
L
T
NM
EN
OF
Y
IT
RO
VI
UN
A
I
T
EN
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M
LS
Build thriving communities by
developing and connecting our
employees and enhancing
the environment.
E
n
eveloping products and services that serve the
D
growing sustainability marketplace while making our
own operations more efficient and sustainable
M
EE
n
Our goal is to achieve transformative global change
both inside and outside the Company, in the areas of focus
shown in the graphic opposite. Programs and projects in
these areas – from empowering micro and small businesses
to providing products on environmental risks and promoting
financial education and capacity – are showcased on the
following pages.
CO
apping employee expertise to build stronger,
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sustainable communities, an engaged workforce and
lasting relationships with our neighbors
COMMUNITY ESSENTIALS
build thriving communities by developing and connecting
our employees and enhancing the environment.
OY
n
HE
FAIRNESS, INTEGRITY AND TRANSPARENCY
PL
trengthening capital markets and supporting
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access to capital, which in turn creates economic
opportunity and jobs
Create economic
opportunities, access to finance
and jobs by providing fundamental
financial knowledge and tools.
EM
n
IAL ESSEN
C
TI
N
A
AL
IN
TH
Our Corporate Responsibility efforts focus on areas where
we can make the biggest positive impact on society:
FINANCIAL ESSENTIALS
create economic opportunities, access to finance and jobs
by providing fundamental financial knowledge and tools.
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OF
Corporate Responsibility (CR) embraces not just how we
operate but what we do. It helps drive our growing global
business by informing our ability to provide essential
market intelligence.
TS
L SERVICES INNOVA
TIO
S
Launched in 2014, the strategy draws on insights and
feedback from executives and employee focus groups across
the Company as well as input from external stakeholders.
Focusing on issues most material to our business, the strategy
streamlines our CR programs, practices and report under the
following two pillars:
A
E
RK
FI
CIA
NAN
H
LT
McGraw Hill Financial’s Corporate Responsibility strategy
is designed to maximize our societal and business impact. It
aligns with our corporate objective to promote sustainable
financial growth and reflects the priorities and expertise of
our iconic individual businesses.
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CORPORATE RESPONSIBILITY AT
MHFI: IT’S ESSENTIAL
INTRODUCTION
ST R E N
4
TH
E
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MCGRAW HILL FINANCIAL: OUR CORPORATE RESPONSIBILITY VISION
FINANCIAL ESSENTIALS
FINANCIAL ESSENTIALS
WOMEN
FINANCIAL ESSENTIALS DRIVE TODAY’S
WORLD. MCGRAW HILL FINANCIAL LOOKS
TO DEPLOY OUR EXPERTISE IN DATA
AND ANALYTICS TO HELP STRENGTHEN
CAPITAL MARKETS AND TO PROMOTE
INNOVATION IN FINANCIAL SERVICES
AND HEALTHY, INCLUSIVE ECONOMIES.
THOUGHT LEADERSHIP
BY DOING SO, WE CAN BRING BENEFITS
TO SOCIETY WHILE PURSUING NEW
MICROFINANCE
OPPORTUNITIES FOR OUR BUSINESS.
We put our commitment to Corporate Responsibility and
society into practice by building the capacity of women-run
small businesses and microfinance institutions (MFIs) around
the world and by leading efforts to understand and improve
financial education and capacity.
KNOWLEDGE
Empowering the world through knowledge
We strongly believe that providing basic financial knowledge
and tools, and the ability to access credit, creates economic
benefits for individuals, communities and economies. Over
time, and in the right hands, such actions can help bridge
income gaps and provide life-changing financial opportunities
for underserved populations.
Among the ways we achieve these goals is through innovative
grant making. In line with our goal of creating opportunities
CASE
STUDY
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UNDING FIRST GLOBAL FINANCIAL
LITERACY SURVEY
How do people across the world make basic financial
decisions? How well do they understand money and the
concepts at the heart of financial decision making? These
questions will soon be answered, on a global scale, thanks to
pioneering research by McGraw Hill Financial and Gallup.
The Global Financial Literacy Survey will, for the first time,
document financial literacy across gender, age, education,
geographic region and national income levels. With expert
support, McGraw Hill Financial has added questions
to the 2014 Gallup World Poll that will gauge people’s
understanding of basic financial concepts including risk,
diversification and interest, targeting 148 countries. The data
collected will help to identify needs and priorities around the
world and to guide policy development and service delivery.
“This project will enable us, for the first time, to compare
financial literacy across the world,” said Dr. Annamaria
Lusardi, Academic Director of the Global Financial Literacy
Excellence Center (GFLEC) at the George Washington
University. Dr. Lusardi, along with Dr. Leora Klapper, Lead
Economist at the World Bank Development Research Group,
acted as the project’s technical advisers.
The indicators Dr. Lusardi helped design will produce
universal data on people’s ability to do simple calculations
and understand basic financial concepts.
“Policy makers, NGOs and financial services companies will
be able to use the results to target efforts to improve financial
literacy,” added Lusardi. “Financial literacy is essential for
people anywhere in the world to participate in today’s society.
McGraw Hill Financial understands this. The Company is a
real thought leader in this area.”
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MCGRAW HILL FINANCIAL: OUR CORPORATE RESPONSIBILITY VISION
FINANCIAL ESSENTIALS
Although India has adopted several measures to advance
financial inclusion, about 40% of its population is still without
access to basic financial services. One reason is the lack of
credible district-level data on the extent of financial inclusion,
which has hindered efforts by policy makers, bankers and
regulators to plan and implement inclusion initiatives.
that spur economic growth, we increasingly support projects
that are helping to fill data gaps and provide analysis to
enable more effective delivery of services and greater access
to finance and credit.
In India, for example, CRISIL, a global analytics company
majority owned by Standard & Poor’s, runs a national
financial awareness initiative called “Pragati – Progress
through Financial Awareness.” The Pragati workshops
provide training in basic savings and investment concepts,
mainly to rural women and female students across several
Indian states with high rates of financial exclusion.
CRISIL Inclusix, a pro-bono initiative, helps address this
situation. Leveraging CRISIL’s expertise and understanding
of the financial services sector, it measures financial inclusion
across India’s 638 districts and 35 states, based on three
parameters – branch penetration, credit penetration and
deposit penetration. The latest update, released in 2014,
highlights that while India’s overall Inclusix score remains
relatively low there is a clear, if slow, upward trend. Inclusix
also captures wide geographical disparities in the penetration
of financial services within India, revealing that 11% of all
bank branches are found in the country’s six largest cities.
In response to the need for better data to create a more
inclusive financial system, we are partnering with Gallup®
on groundbreaking global research on financial literacy
(see Case Study, page 7).
Accessing banking services
As many as 2.5 billion people lack access to basic banking
services. Microlending to individuals and entrepreneurs
who cannot access mainstream banking services is one
important way to bridge this gap, and McGraw Hill Financial
is helping lead efforts to expand and improve the global
microfinance sector.
In line with our CR strategy, these efforts go beyond on-theground support for microfinance in developing countries to
include analysis of how to deliver such services more widely
and effectively that microfinance institutions can use.
Increasingly we are targeting this support to womenowned businesses, due to growing evidence that this pays
dividends for society. Women entrepreneurs bring in 20%
more revenue with 50% less invested, according to Harvard
Business Review. For example, we financed research by
the international nonprofit Women’s World Banking, on the
challenges and opportunities of offering microenterprise
lending to low-income individuals in Mexico. Its findings
estimated a potential market of 2-2.5 million Mexican
microentrepreneurs currently unserved by individual lending.
BRINGING BASIC BANKING SERVICES TO MILLIONS OF LOW-INCOME
PEOPLE AROUND THE WORLD
“We fully expect the index to be one of the most potent
tools for broad-basing financial inclusion in years to come,”
says Maya Vengurlekar, Senior Director, who leads CRISIL’s
Corporate Social Responsibility initiatives.
Innovating with thought leadership
To tap this market successfully, the report concluded that
financial institutions must: tailor loans to borrowers’
business cash flow and household economics; provide
and clearly communicate transparent loan benefits and
terms; embed financial education in all marketing and
communication strategies and invest in staff training to
ensure proper loan analysis.
Promoting healthy, inclusive economies
Our business products can also promote economic
inclusion, by shedding light on access to basic banking
services. One example is CRISIL Inclusix, a comprehensive
index that measures financial inclusion within India down
to the district level.
We also promote understanding of Financial Essentials
through thought leadership. Launched in 2013, the McGraw
Hill Financial Global Institute provides a high-level forum to
advance open, transparent capital and commodity markets,
which in turn increases economic opportunity. In partnership
with leading academic, business and nonprofit organizations,
the Institute also addresses broader societal issues, including
sustainability, exploring solutions in fields such as sustainable
energy and smart cities.
Other examples of thought leadership include our
participation in UN efforts to define a sustainable
financial system (see Case Study, page 14).
CASE
STUDY
M
APPING THE 2.5 BILLION UNBANKED
AND UNDERBANKED CREATES NEW
MARKETS
As the microfinance sector grows, so do the prospects for
bringing basic banking services to millions more low-income
people around the world. The Microfinance Information
Exchange (MIX), long supported by McGraw Hill Financial,
is helping drive this expansion. By providing standardized
data services, analysis and business information on more
than 3,000 microfinance institutions (MFIs), MIX enables
foundations and multilateral banks to make effective
investments and track the results.
“Microfinance is an increasingly visible and important
industry and MIX makes it more transparent and adds
credibility,” says Jane Eddy, Region Head, Latin America,
at Standard & Poor’s Ratings Services and a longstanding
member and now Chair of the MIX Board of Directors.
S&P Ratings Services helped the founders of MIX, based in
Washington, D.C. to design their approach a decade ago, and
has used the MIX database when rating MFIs. McGraw Hill
Financial also supports MIX’s efforts to measure financial
inclusion indicators in developing countries.
In 2013, this funding supported mapping the availability
of an array of banking services against local population
centers on every island in the Philippines. The innovative
tool highlighted gaps in supply of ATMs, mobile banking
units, cooperatives, microfinance institutions, bank branches
and other basic financial amenities.
“Our hope is that policy makers, international development
banks and microfinance services will see these results as
underscoring a major opportunity to enter the Philippines
market in these underserved areas,” Eddy says.
For S&P, such projects support core business goals as much
as Corporate Responsibility. “These are the markets of the
future,” explains Eddy. “By making objective data available
for regulatory agencies and banks to use in decision making,
we are building a reputation for Standard & Poor’s as part of
the solution.”
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MCGRAW HILL FINANCIAL: OUR CORPORATE RESPONSIBILITY VISION
FINANCIAL SERVICE INNOVATION
COMMUNITY
/ CASE
ESSENTIALS
STUDIES
COMMUNITY ESSENTIALS
COMMUNITY ESSENTIALS STRENGTHEN
ORGANIZATIONS, SOCIETIES AND OUR
SHARED NATURAL ENVIRONMENT.
MCGRAW HILL FINANCIAL WORKS TO
COMMUNITIES
PROMOTE COMMUNITY ESSENTIALS
IN TWO PRIORITY AREAS: EMPLOYEE
EXCELLENCE AND ENVIRONMENTAL
VITALITY.
Promoting excellence and diversity
Our business depends on knowledge, excellence and forward
thinking. We invest in developing our employees’ skills and
capabilities so that they can continue to provide customers
with leading-edge data, analytics and information.
GREEN BUSINESS
Our goal to be a diversity leader is reflected in our
longstanding one-on-one mentoring programs, in which
MILITARY
CASE
STUDY
DIVERSITY
EMPLOYEES LEAD THE WAY
Our eight grassroots-led Employee Resource
Groups support, engage and inspire our employees
They include global networks for Asian, Hispanic, black,
female and gay, lesbian, bisexual and transgender (GLBT)
employees, and host programs ranging from cultural events
to financial fitness workshops, digital innovation
and community outreach.
In 2013, 2,000 employees on five continents took part in
our GLBT group’s annual Spirit Day events, wearing purple
in support of the anti-bullying campaign led by the U.S.
advocacy group GLAAD.
4,000 employees worldwide have taken part, and our vibrant
Employee Resource Groups (ERGs) (see Case Study, below).
In 2013, our Executive Steering Committee launched a
Diversity & Inclusion Scorecard to track progress and
maintain best practices across our businesses.
Supporting veterans and the military
We support and celebrate veterans both inside and outside
our business.
In 2014, we launched VALOR (Veterans and Allies Leading
for Organizational Results), an Employee Resource Group
with a designated veteran leader for each MHFI business
unit. This group matches newly hired veterans to a veteran
employee mentor, and provides professional development
and other services.
For active service members not directly connected to MHFI,
we teamed with the Better Business Bureau’s Military Line
to develop a popular personal finance website, My Military
& Money, and a free financial literacy smartphone app. The
app and site teach military members and their families how
to handle their finances. Nearly 7,500 users have downloaded
the app so far.
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MCGRAW HILL FINANCIAL: OUR CORPORATE RESPONSIBILITY VISION
Strengthening communities
Our employees in 30 countries and more than 90 cities and
towns are essential to our community-building efforts. May
2014 saw our first annual Community Impact Month, with
4,500 employees lending a hand to local nonprofits making
a difference in our neighbors’ lives. McGraw Hill Financial
provided each of the 170 projects with a $2,000 grant.
Activities included:
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essons in basic business and financial concepts from 145
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S&P Capital IQ employees in Hyderabad, India, for over
800 youth and adults to improve their employability.
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5 5 MHFI volunteers making roof repairs, painting walls
and organizing children’s activities at Aqui Nadie se Rinde,
a Mexico City organization that cares for children needing
bone marrow transplants.
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ssembling nearly 3,000 meals for St. Francis Food
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Pantries and Shelters in New York City.
COMMUNITY ESSENTIALS
OUR EMPLOYEES IN
30 COUNTRIES AND MORE
THAN 90 CITIES AND
TOWNS ARE ESSENTIAL
TO OUR COMMUNITYBUILDING EFFORTS.
CASE
STUDY
POWERING A BENCHMARK FOR DISABILITY HIRING
Our commitment to a diverse workforce goes beyond
our own walls. For example, we have long supported
the National Organization on Disability (NOD), through
capacity-building grants and pro-bono, expert advice. So
when the nonprofit needed in-kind support to craft its new
Disability Employment Tracker, CEO Carol Glazer knew just
who to turn to.
Fifty large- and medium-sized companies, from sectors
including healthcare, utilities, retail, financial services and
technology took part in the confidential survey. Participants
learned where they stood among the 50 companies
against measures for hiring, training and supporting people
with disabilities and injured veterans. For each measure,
resources on workplace best practices were provided.
“J.D. Power is the premier certifier of customer satisfaction
for a range of sectors,” she says. “So we asked the head of
their certification program to help us develop a rigorous tool
that Fortune 500 companies could trust.”
“J.D. Power not only helped us to design the tracker
accurately, they showed us that it should be used more as a
carrot than a stick – an opportunity for companies to lead
on welcoming people with disabilities into the workforce,”
says Glazer. “With their continued support we hope
ultimately to make this a public survey and to endorse the
companies with the best record.”
As large employers look to hire more people with
disabilities, NOD’s Disability Employment Tracker, piloted
in 2014, provides a much-needed benchmarking service.
Growing our green business
Many MHFI products provide essential intelligence on
environmental opportunities and risks, paving the way for
policy makers and businesses to adopt effective mitigation
strategies.
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tandards & Poor’s Rating Services showcases how
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environmental, social and governance performance can
affect companies’ and countries’ creditworthiness, and
highlights financial risks from trends such as climate
change. It also supports the growing green bonds
market through the nonprofit Climate Bonds Initiative
www.climatebonds.net.
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he Dow Jones Sustainability Index, the S&P U.S.
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Carbon Efficient Index, the S&P Global Water
Index and the S&P Global Eco Index measure
leading companies’ sustainability performance.
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Platts provides global information on energy, petrochemicals, metals and agriculture as well as specialized
products on carbon, biofuel and renewable energy markets.
MHFI COMMUNITY IMPACT MONTH REACHED THOUSANDS OF
COMMUNITIES WITH ESSENTIAL TRAININGS AND SUPPORT
NOD CEO, CAROL GLAZER, AND J.D. POWER TEAM UP TO ENHANCE JOB ACCESS FOR PEOPLE WITH DISABILITIES
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MCGRAW HILL FINANCIAL: OUR CORPORATE RESPONSIBILITY VISION
COMMUNITY ESSENTIALS
Shrinking our environmental footprint
CASE
STUDY
As a financial company, our most significant impacts on
the environment occur through our facilities and include
greenhouse gas emissions, water use and waste.
CARBON AND
CREDITWORTHINESS
How will likely future carbon regulation affect the
powerful oil and coal sectors and their investors?
Measures to reduce our climate impact focus on our
buildings. To improve building efficiency and performance,
we use green engineering and construction standards
and tools such as LEED® (Leadership in Energy and
Environmental Design) and the U.S. Environmental
Protection Agency’s ENERGY STAR® efficiency program.
CRISIL House, the 200,000-plus square foot CRISIL
headquarters in Mumbai, is one stellar example of our
dedication to environmentally sustainable operating
practices. The LEED® Platinum-certified building features
generous use of natural light, zoning systems to reduce
power consumption, water recycling mechanisms and
indoor gardens.
Standard & Poor’s Ratings Services set out to answer this
question as part of our efforts to align corporate credit
analysis and climate change risk for investors. In recent
research conducted with Carbon Tracker Initiative, a
nonprofit think tank, we concluded that carbon constraints
might negatively impact both industries in the short to
medium term.
For the oil sector, we analyzed a sample of the S&P rated
oil and gas sector in North America, including major
and medium-sized companies as well as unconventional
businesses such as oil sands producers. Assuming increasing
carbon constraints as well as high production and other costs,
the results showed a significant impact. The financial risk
profiles of smaller companies deteriorated to a degree that
could lead to negative outlook revisions and downgrades by
S&P over 2014-2017. The effect on major companies would
be slower, with their current credit ratings maintained until
2016-2017.
In a separate report on the coal industry, our analysts
described a significant decline in coal production and
consumption globally “becoming a much more realistic
scenario” as governments seek to reduce their CO2
emissions. Carbon pricing mechanisms, among other factors,
they concluded, will flatten the growth in coal demand over
the medium term.
“Through in-depth risk analysis and research collaborations
such as with Carbon Tracker Initiative, we are aiming to
provide practical resources to help investors and industry
sectors take steps to address the very real credit risk issue
of climate change,” says Michael Wilkins, S&P’s Managing
Director, Infrastructure Finance Ratings.
NEERAJ SAHAI, PRESIDENT, STANDARD & POOR’S RATINGS, SERVES
ON THE UN ENVIRONMENTAL PROGRAMME’S INTERNATIONAL
ADVISORY COUNCIL
Thought leadership
To fulfill our business mission of providing sustainable
global growth we need to consider what a future sustainable
financial system will look like. As a participant in the United
Nations Environment Programme’s (UNEP) high-level Inquiry
into a Sustainable Financial System, Standard & Poor’s
Ratings Services and its President, Neeraj Sahai, are helping
explore financial market policy and regulatory innovations
that promote the transition to a global green economy.
Environmental risk is another frontier area. S&P is part of the
UNEP Finance Initiative’s “E-RISC” project, which integrates
ecological factors into credit risk models for sovereign
bonds. We also work with the pioneering Stranded Assets
Programme at Oxford University’s Smith School, sharing
research on how environmental risks may increasingly result
in “stranded assets” – such as coal mines unable to recover
their value due to carbon regulatory policies.
Wherever practical, we also invest in on-site renewable
energy generation.
Employees lead many of the efforts to shrink our
environmental footprint, from recycling to energy saving and
green commuting. Currently, 16 formal Green Teams support
our environmental targets and initiatives in the United States,
United Kingdom, Mexico, India, Canada and Argentina.
CASE
STUDY
CANARY WHARF:
SUSTAINABILITY IN PRACTICE
Our London site in Canary Wharf, housing almost
1,200 employees, is a model of sustainability practice.
Certified to ISO 14001 and 50001 environmental
management standards, it also offers food composting
facilities and eLearning environmental training for employees.
Hands-on learning includes an “energy bike” that employees
pedal to create enough energy to turn on everyday
appliances and an eco-driving simulator that teaches
techniques to drive more fuel efficiently.
Our New Targets
2013
baseline
2014
goals*
2016
goals*
2018
goals*
Scope 1 and Scope 2 GHG emissions
64.2
-15%
thousand tCO2e
Waste diversion
46%
50%
Recycled paper content
40%
Maintain
current
percentage
Paper use
148
tons
-15%
*from 2013 baseline
15
For more information, contact us at [email protected]
www.mhfi.com/corporate-responsibility