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Aberdeen Asset Management
Corporate Responsibility Report
For the 12 months to 30 September 2012
Contents
Welcome01
CR strategy, materiality &
stakeholder engagement
02
Our values
03
Corporate governance &
anti bribery and corruption
04
Responsible investing
07
Environment09
People12
Suppliers15
Community & charity
16
Global reporting initiative (GRI)
G3 Appendix
18
Welcome
Welcome to Aberdeen’s third Corporate Responsibility (CR) report. Covering our
financial year to end September 2012, this report includes information on our
efforts across our seven CR pillar areas, embraced by our global operations.
We are pleased to report in 2012 that:
• CR has been further embedded into our core business strategy;
• Several of our pillar areas have enjoyed another year of substantial development, notably charity,
people and the environment; and
• We are engaging with more stakeholders on CR and responsible investing issues.
Of special note this year is the establishment of the Aberdeen Asset Management Charitable Foundation, the aim of which is to
expand and formalise philanthropic giving across the Group. Our environmental programme has also been an area of focus and
now over 75% of our operations by headcount are covered by our environmental management system.
As with last year, we continue to enjoy commitment from our Board of directors through to regional offices and individual teams
to create a more responsibly-minded company, ensuring a seamless flow between our responsible practices and day-to-day
global operations.
A new aspect to our report this year is the highlighting of some of the more challenging issues we face as we strive to continually
improve our responsible business practices. We believe that by bringing these to the fore we can increase transparency and
encourage discussions with other groups which may be facing similar challenges. We have also, for the first time, prepared our
report according to the Global Reporting Initiative (GRI) G3 Sustainability Reporting Framework.
For next year, we aim to migrate our current format of seven key pillar areas to one more widely adopted by global companies,
re-focusing our CR efforts across the four general areas of marketplace, workplace, community and the environment.
Ultimately, it is our hope that our stakeholders will find this report helpful and informative. As always, we welcome feedback on any
aspect of our responsible business activities.
Andrew Laing
Deputy Chief Executive
December 2012
Our front cover features a number of this year’s CR highlights:
Brad Livingstone-Foggo and Lucy Garth from the Sydney office at the Royal Hospital for Women. Aberdeen provided the funding for an Aqualex Fluid
Control System which helps women achieve normal reproductive outcomes and improves their quality of life.
Nick Robinson from our Brazil office with the CEO of Action for Brazil’s Children visiting one of the projects we are supporting. The Foundation pledged a
significant monetary contribution to the charity over the next three years.
Marnie Uy taking part in the Read to Me Early Literacy Programme, a year-long scheme which provides quality classroom book collections to thousands
of children in Philadelphia and inspires them to read with their parents, caregivers and teachers throughout the school year.
www.aberdeen-asset.com
01
CR strategy, materiality & stakeholder
engagement
Our CR programme is driven by a number of factors. Led by the Board’s commitment to responsible business practices across our
global operations, it encompasses employee expectations, shareholder and client demands, legislation and regulation, as well as
input from local communities, suppliers, rating agencies and industry bodies. These groups form our principal stakeholders and
by engaging in regular, two-way dialogue we ensure that we focus on the material issues which matter most to them.
This year, this dialogue has been wide-ranging and includes learning about and implementing best practice across the CR spectrum.
We have spent time finding out what our stakeholders think we do well and also about areas in which we could improve. We have
communicated our advancements as well as our challenges. These conversations have been instrumental in expanding our CR
efforts, particularly in the areas of corporate governance, responsible investing and charitable activities.
The table below sets out some examples of our stakeholder engagements in during the year. It identifies the material issues
addressed and provides details of the engagement undertaken.
Stakeholder
Material issues
Clients & shareholders High quality service and delivery
Developing our responsible
investing capabilities to meet
market demands
Engagements and further details
Regular meetings are conducted with clients and shareholders.
We are committed to responsible ownership and endeavour to
exercise proxy votes at all shareholder meetings where authorised
to do so by clients. This year we voted over 18,000 resolutions at
more than 1,600 shareholder meetings.
During the summer, Masters degree students from Imperial
College worked on three different CR projects for Aberdeen,
focussing on our responsible investing capabilities in fixed income,
property and our environmental systems and procedures.
Employees
Attracting and retaining talent
Promoting diversity
Communities
Making a positive contribution to
the communities in which we
operate
Minimising our environmental
impact and improving our internal
environmental systems
Career development opportunities;
Competitive compensation;
Graduate, intern and apprenticeship programme;
Women in business events;
Monitoring of HR data.
For further details, see pages 12-14
Establishment of the Aberdeen Charitable Foundation.
For further details, see page 16
Development of our environmental management system.
For further details, see pages 9-11
Investee companies
(equities)
Performance of investee companies Regular meetings are held with investee companies. In the 12
(financial and ESG performance)
months to 30 September 2012, 4,116 company meetings were
held by our regional equity teams. This year specifically, our teams
spoke extensively with companies about executive remuneration
and board diversity.
For further details, see pages 4-7
Exchange indices &
rating agencies
Improving the robustness of ESG
related indices
Improving our own CR performance
Professional &
government
organisations
02
Regulatory and legislative changes
Corporate Responsibilty Report
Discussions were held with FTSE4Good and the rating agencies
EIRIS, Vigeo and Sustainalytics to discuss our performance, sector
wide performance, issues faced and areas for improvement.
During the year, we have responded to a large number of public
consultations including the UK Government consultation on
remuneration, the EU and House of Lords consultation on board
diversity and the UK Stewardship Code.
For further details, see page 6
Our values
Our company values provide a framework for communicating Aberdeen’s core principles to
our stakeholders.
Our five corporate values are:
Integrity
Quality
Our goal is to deliver the highest calibre of service for our clients and we believe
this is achieved by conducting our business in a manner which is honest and marked
by integrity. We believe that our openness and our culture of small, close-knit investment
teams helps to build trust and long-lasting relationships. We recognise our responsibility to
ensure that customers and employees are treated in a professional and fair manner and that
transparency in conduct is paramount to operating in a robust and open environment in which
all parties can have confidence.
We are committed to quality – not only in terms of our investments and customer
service, but of our people. We recognise the importance of having a talented, diverse
and dedicated workforce and are committed to making Aberdeen a great place to work,
providing stimulating careers with development opportunities.
We value first-hand research and believe that close teamwork is integral
to analysing and discovering the best investments for our clients.
Teamwork
Ambition
Challenge
From initial meetings to constructing portfolios, we emphasise collaboration and believe
that this strength-in-depth approach helps us to deliver long-term, superior performance
for our clients.
We aim to deliver the best solutions for our clients by understanding markets
around the world, combining global reach with local understanding. We have grown
significantly, through acquisition and organically, but the focus and ambition of our
employees remains pivotal to our success.
We operate flat management structures and value our accessibility to each
other and our clients. This facilitates lively discussion and debate both internally
and externally, challenging our investments, our people and the status quo to
deliver strong investment performance.
www.aberdeen-asset.com
03
Corporate governance
Our corporate governance practices relate to both Aberdeen and the investments we hold.
We continue to believe that effective and transparent corporate governance leads to companies being
more successful in their core activities which, in turn, allows for enhanced returns to shareholders.
Corporate governance policies
for our own business
Corporate governance policies
for our investee companies
The Board of Aberdeen Asset Management PLC
• Composition: Chairman, seven non-executive directors
(six of which are considered to be independent) and six
executive directors.
Corporate governance principles & engagement
The Group’s corporate governance principles provide
a global framework for investment analysis, shareholder
engagement and proxy voting, combining international best
practice with an emphasis on understanding the economic,
legal and cultural context of each company. This year, the
Group published its second annual equity engagement
report which details the breath of our engagement activities
with investee companies and illustrates how this may affect
investment decisions. This, together with our principles, is
published on the corporate governance page of our website.
• Roles of Chairman and Chief Executive Officer are
separate, clearly defined and approved by the Board.
• Eight meetings are held annually, following a
comprehensive agenda which includes reviews of
financial performance, strategy and operations, with
full attendance by all Board members at each meeting.
• Each of the four board committees (audit, nominations,
remuneration and risk) met on a regular basis throughout
the year.
• Board performance evaluation is undertaken annually,
led by the Chairman.
• UK Corporate Governance Code: throughout the year,
the Board has taken into consideration the guidance
provided by the Code. A full review can be found in the
corporate governance section of the annual report.
Further details can be found in the corporate governance
section of the annual report.
Proxy voting
We endeavour to exercise proxy votes at all shareholder
meetings where we are authorised to do so by our clients.
Voting decisions are made by our investment managers,
not outsourced to a third party, and therefore reflect our
knowledge of the company and discussions held with
management.
In the twelve months to 30 September 2012, Aberdeen
voted over 18,000 resolutions at more than 1,600
shareholder meetings, supporting management in over
92% of proposals.
Over the past year, there have been a number of developments in corporate governance as a result of
governments and regulators around the world reviewing corporate governance codes, with particular
focus on remuneration and diversity issues. These developments impact on both our business and that
of our investee companies.
Executive & board remuneration
Developments
In the UK, the Enterprise and Regulatory Bill is expected to be introduced in 2013, which will see companies being required to put
their remuneration policies to binding vote, at least every three years.
In the USA, while there is currently no binding vote on executive remuneration, over the past year the SEC has announced new rules
which will more strictly regulate the independence of compensation committees and their selection of outside pay consultants.
In Australia, the Australian Corporate Act, established in July 2011, states that company boards are subject to a resolution which
would force all directors to stand for re-election should a company receive more than 25% opposition to its remuneration report
for two consecutive years. This act has increased focus on executive pay and, as a result, has seen greater engagement between
investors, companies, and other stakeholders on this issue.
04
Corporate Responsibilty Report
Our responses
Aberdeen Asset Management PLC
Aberdeen’s remuneration policies are designed to support our business strategy as a leading international asset manager. The
objective is to attract, retain and reward talented individuals for the delivery of sustained, superior returns for our clients and
shareholders. Aberdeen operates in a highly competitive international employment market, and aims to maintain its strong
track record of success in developing and retaining talent.
Investee companies
The focus that has been placed on executive pay during the year has resulted in remuneration issues increasingly being an area
for discussion during meetings held with investee companies. While we accept that there is a high degree of subjectivity involved
and are therefore not prescriptive in setting out what constitutes best practice, we do look for schemes that are simple to
understand, long term in nature, with well-balanced and stretching targets and that are appropriate in quantum. It is not the
role of shareholders to micromanage policies, however, we need to feel confident that decisions are being made in the interests
of a company’s performance, its strategy and its shareholders.
Diversity on boards
Developments
Globally, the number of board seats held by women varies significantly, from 36% in Norway to 5% in Italy and 1% in JapanA.
A number of measures are being employed to tackle this issue with some countries adopting quotas while others try to use
voluntary measures to stimulate change.
In Europe, 11 EU member states have introduced legal quotas to promote gender equality in the boardroom.
In the UK, over the past year, the Financial Reporting Council (FRC) has proposed changes to the UK Corporate Governance Code
which requires boards to report on their gender diversity policies and how they are meeting their goals.
Our responses
Aberdeen Asset Management PLC
Currently, Aberdeen’s Board consists of fourteen directors, of whom three (21%) are female. Aberdeen supports the opinion
that appointments to the Board should be made on a number of criteria, including background and experience, appropriate
skill set and expertise, personal attributes, nationality and gender. We will continue to consider these criteria when selecting
future Board members.
To help promote women in industry, Anne Richards, Aberdeen’s Chief Investment Officer and Board member, has held a
number of networking dinners to bring together the female business leaders of today with those of the future and to provide
a forum for dialogue between women from a wide array of different backgrounds.
Our statement in support of board diversity can be found on our website at:
http://www.aberdeen-asset.com/aam.nsf/aboutus/governanceaberdeen
Investee companies
Aberdeen believes wholeheartedly in the value of diversity in the boardroom and is supportive of the FRC’s aim to encourage
diversity and reporting on the background and expertise of board members. We are also supportive of Lord Davies’ aim to
raise the proportion of women in the boardroom.
We have a vested interest in knowing that the companies in which we invest for our clients take board diversity seriously and
that they rely on a wide range of factors in appointing board members. We engage with our investments constantly on this
issue and encourage them to choose individuals who have both the required expertise for the business as well as a deep
understanding of the risks associated with the group’s total operations.
In support of our commitment to board diversity, we are a signatory to the investor group of the 30% Club.
A
Governance Metrics International (GMI) Ratings’ 2012 Women on Boards Survey
www.aberdeen-asset.com
05
Associations
Aberdeen provides input to public policy debates through its involvement in trade associations and by responding directly to public
consultations.
Aberdeen is a member of the following associations:
Alternative Investment Management Association
Asian Association for Investors
Asian Corporate Governance Association
Association of British Insurers
Association of Investors in Capital Markets, Brazil
International Corporate Governance Network
International Sustainability Alliance
Investment Management Association
National Association of Pension Funds
PRI Association
Scottish Council for Development & Industry
Scottish Financial Enterprise
Shanghai Securities Industry Association
UK Sustainable Investment and Finance Association
In the past 12 months, direct responses were submitted by
Aberdeen to the following consultations:
United Kingdom
Investment Management Association: Monitoring adherence to
the FRC’s Stewardship Code 2011
Department for Business, Innovation and Skills: Executive pay and
enhanced shareholder voting rights
House of Lords: Gender balance in the boardroom
Financial Reporting Council: Revisions to the UK Stewardship
Code
Sir George Cox: Review of short termism in British business
TUC: Fund manager voting survey 2012
Europe
European Union: Gender imbalance in corporate boards in
the EU
Asia
Securities Commission Malaysia: Corporate Governance Blueprint
Japan Ministry of Justice: Interim Proposal on the Revision of the
Companies Act
Australian Securities Exchange: Strengthening Australia’s equity
capital markets consultation paper
Anti-bribery & corruption
Aberdeen follows a globally consistent approach to managing anti-bribery and corruption (ABC) at all levels of our business and in
all regions in which we operate. We commit to biding by all applicable laws including the UK Bribery Act (2010), US Foreign
Corruption Practices Act 1977 (FCPA) and related legislation.
Our approach is implemented via and outlined in our policy which specifically states we do not allow the giving or receiving of any
bribes or facilitation payments. This policy is approved by the Board of Aberdeen, is owned by the Group Head of Risk and is publicly
available.
A robust gifts and entertainment policy is in place to monitor relations with third parties with upper limits placed on the amount
given to any one party or company. The executive-level risk management committee receives quarterly management information
statistics on gifts and entertainment given or received and includes details of any declined by employees.
Details of any breach in policy by any member of staff would be reported to senior management and, if deemed appropriate,
disciplinary proceedings may take place. There have been no breaches of the ABC policy in the past three years.
Agreements with third parties must include a commitment to abide by relevant bribery legislation and any breach of such would
initiate an immediate review of contract. Aberdeen does not make political donations.
In order to ensure the ABC policy is implemented around the Group, Aberdeen ensures there is regular training for employees,
backed-up by compliance mechanisms including the gifts and entertainment procedure listed above. Issues or queries can be raised
by staff to the Global Head of Compliance, Financial Crime. Any suspicions can be reported using the confidential whistleblowing
email address.
An annual monitoring review of financial crime takes place and includes ABC. In 2011, the risk division completed a global
assessment of ABC risks and controls within Aberdeen. The assessment surmised that, generally, the control environment is
operating effectively. However, a number of control gaps were identified, to be addressed via action points managed and tracked
through our risk management system, Arc Logics ‘Sword’. Sword is used to track issues and events to completion by allocating
responsibility for an issue to an individual who is charged with completing the actions that arise from it. Sword completion statistics
are regularly reported to the risk management committee.
In addition, as members of the Investment Management Association in the UK, we are able to benchmark our policy against our
peer companies by attending regular financial crime discussion groups.
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Corporate Responsibilty Report
Responsible investing
Responsible Investing (RI) is gaining ground in world markets and is an important part of our business across the three asset
classes of fixed income, equities and property. While Aberdeen has its RI roots in Socially Responsible Investing (SRI) - which
focuses on the exclusion of activities like tobacco, alcohol and gambling - we have greatly expanded our research over the past
five years to include environmental, social and corporate governance (ESG) research - assessing the risks of an investment on
its performance across these areas. Our sustainability programme also continues to expand under our property division and is
integrated into our investment decisions for direct property.
At 30 September 2012, our assets under management (AUM) for screened funds, which includes all of the equity and fixed
income portfolios that we manage for clients which have some type of RI screening, was £17.6 billion (2011: £17.9 billion).
Our AUM for the SRI specific funds we manage (which includes only our equity funds) also remained in line with last year at
£1.8 billion (2011: £1.6 billion).
Fixed income
For the past two years, our fixed income team has been trialling
the integration of ESG factors into investment decision making
with a scoring process incorporated into our credit research,
specifically for European corporate debt. While the project
remains at an early stage, it moves us closer to being able to
formally integrate ESG considerations into our decision making
process. Demand for including ESG factors in fixed income
mandates has been growing slowly, as the market moves
from equities and property (with their ESG overlays) to other
asset classes. Our fixed income team has provided a negative
screening SRI service for a number of years for clients who
want to avoid investing in specific activities in the market.
Over the next couple of years, we hope to look more closely
at methodologies for incorporating ESG type considerations
into sovereign debt. We see client demand beginning to grow in
this area - more and more requests for proposal are referencing
ESG criteria - and want to be in a position to offer this service
to the market.
Equities
As the integration of ESG risks grows steadily in importance
with international groups, legislative bodies, and clients alike,
our ESG team for equities continues to engage with our
investee companies on issues that affect their business and
ultimately, the returns for shareholders. Our team of ESG
analysts consists of five full time members with as many as
two rotating graduate trainees. With our added resource we
are able to provide clients, upon request, with six-monthly
ESG summaries of their portfolios, covering the engagement
we have undertaken during the period with their investments
on ESG related topics.
Our commitment to our clients, which is underscored by our
commitment under the UNPRI, is to research and engage with
the majority of our equity holdings on ESG issues and to be a
responsible shareholder, demonstrated importantly by voting
our proxies. During the year, we engaged with approximately
150 companies on their performance, policies and targets
relating to ESG factors.
Engagement with companies is on-going and produces an array
of outcomes. Many are positive, in that a company will decide
to report more clearly on its ABC practices, for example, or
increase oversight and reporting on its supply chain. It can also
demonstrate where there are heightened risks, for example if
a group refuses to speak with us about recent fines for poor
business practices. Combined with engagement, a vital part
of our communication with companies is our proxy voting,
a record of which can be found on our website at: www.
aberdeen-asset.com/aam.nsf/groupcsr/governancevoting.
Our challenge continues to be fully integrating ESG issues into
our equity investment process.
Direct property
Our direct property team has made tremendous strides
over the past two years to offer clients the most up-to-date
services regarding the sustainable management of property
investments. New this year is the property team’s integration of
environmental factors into the investment process; corporate
governance elements also continue to be an important factor
in our indirect property portfolios. Demand for the inclusion
of sustainability factors in property is growing, particularly in
Scandinavia where the market is at the forefront of aspects
like green leases.
This year, we have continued to work with the International
Sustainability Alliance (ISA), of which we are a founding
member, on the development of benchmarking standards
and the Building Research Establishment (BRE) in trials of
their innovative waste management tool SMARTWaste.
We were also recognised for our significant contribution
to the IPD Sustainable Property Indicator (ISPI) at the 2012
IPD UK Property Investment Awards. ISPI is an indicator of
the relationship between environmental performance and
financial performance of 1,700 properties and 115 funds in
the UK market.
www.aberdeen-asset.com
07
Key developments & challenges during the year
As a relatively new and growing area, we have made great progress in expanding our property sustainability services, however, we
have faced challenges too, a selection of which are set out below:
Integration of sustainability objectives across Europe
During the year, we made changes to the way in which our direct property responsible investing activities
are managed and monitored across the Group. Previously, management had been undertaken on a local
basis and, whilst all locations had excellent examples and case studies of best practice, we were not
capitalising on the potential to share information and enable internal learning. This year, focus has therefore
been placed on achieving greater cohesion. Facilitated by the London based Sustainability Manager and
Director, sustainability objectives were agreed with each of our main property-management offices in
Finland, France, Germany, the Netherlands, Norway, Sweden and the UK. The objectives include the same
core themes between locations but have been adjusted on an individual basis depending on the team’s
resources. To ensure that these objectives are carried out, a sustainability champion has been appointed in
each location to work with the local Head of Asset Management and complete quarterly reports which are
circulated to the Sustainability Manager and Director.
This new structure of communication will encourage more consistent external reporting and the sharing of
ideas internally on a more regular and formal basis. Furthermore, in Europe we are seeing consistencies in
legislation with laws often being created in one country and then spreading across borders over subsequent
years. Being aware of changing legislation across regions and countries will allow Aberdeen to be more
prepared for the future.
Automatic metering across the UK portfolio
We recognise the importance of setting targets and monitoring performance but to be able to do this
effectively, accurate and timely data on energy consumption is required. Historically, monitoring has been
dependent on data from manual meter readings and utility bills. This is time consuming, allows for human
error, does not isolate areas within a building effectively and only gives an overall consumption figure for
the period. Automatic Meter Readers (AMRs) overcome these problems, allowing half hourly meter
readings to be communicated via telephone lines or satellite to an online server which displays the readings.
These readings highlight areas in a building where energy usage can easily be decreased. An awareness of
the benefits of AMRs has led to the UK sustainability team commencing discussions on the development of
an AMR installation strategy for our UK portfolio.
Retail and office fit-out guides for tenants
Aberdeen is committed to communicating with tenants on sustainability issues. In support of this, we
created two sustainable fit-out guides for tenants of offices and retail units. The guides give advice on
solutions and ideas for sustainable energy, lighting, water, waste and transport. All fund managers, asset
managers and managing agents have these guides and are encouraged to distribute them to prospective
and existing tenants.
The UK Energy Act and Energy Performance Certificates (EPCs)
From April 2012, the Energy Act 2011 (the Act) made it a legal requirement for all sellers and landlords to
ensure that a valid EPC is in place within seven days of a property being marketed. Furthermore, from 2018
for commercial properties and 2016 for residential properties, it is anticipated that the Act, with minor
exceptions, will make it unlawful to sell or let properties with the two lowest EPC ratings of ‘F’ and ‘G’.
Informed comment from industry experts has suggested that this may also be extended to ‘E’ rated
properties. Following the publication of the legislation, a full risk assessment was carried out on our existing
assets, identifying those assets held which did not have an EPC and those for which the EPC was rated E, F
or G. The investment committee are in the process of determining whether these low grade assets will be
sold before 2016/2018, or improved and re-surveyed.
08
Corporate Responsibilty Report
Environment
Managing our environmental impact not only benefits the local and wider environment but also has
clear business benefits.
We are now certified to ISO 14001:2004
After rigorous preparation, our UK business, which represents
over 40% of the company, is now certified to ISO
14001:2004.
We have expanded our EMS
Our EMS now covers over 75% of our operations by
headcount with its expansion to our Frankfurt,
Helsinki and Stockholm offices.
We are compliant
We are also pleased to report that once
again no significant environmental
incidents, prosecutions or fines were
experienced by the Group during the
reporting year.
Since the establishment of our
Environmental Management System (EMS),
we have worked to reduce our carbon footprint
and minimise waste and resource use. We have
identified that carbon emissions from our offices,
emissions from business travel and waste generation
are our most significant direct environmental impacts.
Our global environmental committee and facilities teams
have responsibility for coordinating environmental activities
across the business and ensuring that activities are carried out
in line with our Group-wide environmental policy. Regional
committees are in place to implement programmes at a local level
and to build on the work that has taken place in previous years to
reduce our environmental footprint.
Carbon management
Carbon emissions from our offices
Achieved target: to reduce our carbon dioxide emissions by 3% per full time employee (FTE) for our UK offices
7.7% decrease
Overall a 15% reduction in UK offices
since 2009/10
2.0% increase
Obtaining timely data has historically proved difficult, with information only being provided by
our energy suppliers on a quarterly basis and typically being received a month after the relevant
period. To try to monitor electricity consumption more closely, this year we installed smart
meters in Bow Bells House in London, our largest office. As a result, we have been able to
identify areas and activities where we can implement simple changes that can lead to significant
reductions, for example, timing our hot water tanks instead of keeping them on continuously.
2.0% decrease
In London, we have also started to install LED lighting in meeting rooms as the lights offer
longer service life and are more energy efficient than compact florescent and incandescent
lights. A similar programme to roll out LEDs is underway in many of our global offices.
1.0% decrease
Elsewhere, energy audits have been completed in our Frankfurt, Helsinki and Stockholm offices
and our Sydney office continues to purchase electricity generated from renewable sources.
Carbon emissions from business travel
Achieved target: to improve access to video conference facilities to provide an alternative to business travelA
Reducing emissions from business travel remains a challenge, however, we are committed to making progress in this area.
This year, focus was placed on extending and improving our video conferencing capabilities. High quality facilities are now
installed in 14 of our global offices and, as a result, usage has tripled since the prior yearB.
Measurement
Carbon emissions from both our offices and business travel are reported according to the GHG Protocol.
We classify business travel as air, train, car mileage and hotel accommodiation.
New Videoconferencing facilities were installed in May 2011. The data is therefore a comparison of the average usage from May 2011 to December 2011 with January 2012 to
September 2012.
A
B
www.aberdeen-asset.com
09
Waste management
Achieved target: to maintain our recycling levels at our UK sites
Increasing recycling rates and reducing waste are key priorities. During the year, 85.9 tonnes of waste was recycled in our UK offices
which is a slight increase in absolute terms but represents a 4% decrease in relative terms when compared with the prior year.
Paper and cardboard remain the principal source of waste and, in the UK, represent approximately 70% of our recycled waste.
Paper used in all of our offices is FSC sourced.
In 2011/2012 our general waste decreased by 5% per FTE from 59.9 kgs to 56.9 kgs.
Our other aims
In addition to our key target areas of carbon and waste, we have also sought to engage more widely with stakeholders to gain an
understanding of the issues in which they are most interested. During the year, we had regular meetings with organisations such as
Business in the Community and our environmental advisor, WSP Environmental and Energy, to discuss current environmental issues
and areas for development and improvement. In addition, we worked with Masters students from Imperial College who reviewed
our policies, procedures and systems and compared them to best practice in the industry. Internally, we once again circulated an
environmental newsletter to employees to inform them of environmental initiatives across the Group and engaged with employees
globally to promote Earth Hour.
We also ensured that when there were office moves during the year (France and Sweden) our new premises met, if not exceeded,
our existing standard.
Future targets
Over the past two years, we have set targets for our environmental performance, recognising that this helps to focus efforts and
achieve improvements. These targets have always been relatively short-term, spanning only the year ahead and so, while we will
continue to set annual goals, we believe that we should also start to focus on long term environmental goals for the business.
We currently have sufficient data on our carbon and energy emissions for our offices to set a goal for to 2015: to reduce our
global office energy consumption and related carbon emissions by 20% from a 2009/2010 baseline.
In the coming year, we will be collating and analysing data in order to set other long term environmental goals.
Targets for 2012/2013
Carbon
• Reduce carbon emissions by 3% on prior year for all offices covered by our EMS
• Achieve Carbon Trust Certification in the UK
Business travel
• Increase videoconferencing usage by 10% across the Group
Waste
• Decrease general waste by 3% in the UK
• Measure general and recyclable waste for our non UK offices
Stakeholder engagement
• Establish environmental engagement programmes for operational staff globally
• Work with key stakeholders to improve the environmental management of our main events in the UK
including Cowes Week and the Scottish Open
• Work with our external Global Data Centre to reduce emissions from this facility
Automated data collection
• Implement an automated system to collect and record our environmental data for offices in our EMS
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Corporate Responsibilty Report
Our environmental risks & opportunities
Due to the nature of our business, our principal environmental risks and opportunities relate to climate change. While these are
not considered to have a significant impact on our business operations, revenue or expenditure, due to uncertainties regarding
the timing and geographical variations associated with climate change, we recognise the need to assess the risks and
opportunities posed on an on-going basis.
Risks
For our business
Our financial risks relating to environmental harm and climate change focus primarily on rising energy costs and changing
weather patterns. These risks have been identified and summarised on our risk management database and addressed by the
risk management committee.
There is a risk that our energy usage and expenditure could rise as a direct result of company growth and as an indirect result of
climate change over the next few years. Whether it is an increase in costs due to occupying more or bigger offices, an increase in
the need to cool our offices due to high temperatures that last longer in the year, a rise in cost due to higher energy prices or due
to compliance schemes such as the Carbon Reduction Commitment Energy Scheme (CRC) in the UK, all have a financial
implication for the business.
In addition, extreme weather events such as flooding, drought and storms, may cause lost business hours, increased costs in
water usage and damage to infrastructure.
These risks further enforce our commitment to work now to reduce our environmental footprint.
For our investments
As a global investor there is also the risk that environmental changes will impact the value of the assets we hold. We research
every investment we make on behalf of our clients, particularly with regard to its quality, and regularly review companies to see
what measures they have taken, or intend to take, to minimise current and future risks from climate change. Going forward,
engagement with our investments on environmental issues is set to increase, with outcomes impacting investment decisions.
Opportunities
In order to take advantage of the opportunities that the market may present either due to economic, social or regulatory drivers,
we have worked to extend our Responsible Investing capabilities and our engagement with investments on environmental issues
as noted above. Please see pages 7-8 for further information.
www.aberdeen-asset.com
11
People
Our people are the most valuable asset we have and we are committed to attracting, recruiting and
retaining, talented and motivated individuals who put the client at the heart of our business.
business and the graduates to ensure both the business needs
and the graduate development needs are met. Positions are
now available in all UK offices, Philadelphia, Singapore and
Sydney with additional rotations in France, Finland, Germany,
Luxembourg and Switzerland.
We have a flat management structure and a culture of close
knit teams, built up from experienced employees. This not
only benefits our employees but also our clients, helping to
develop long term and personal relationships.
Recruitment and selection
We have recruited 134 graduates globally from 1994 to
2012 and, of those hired, 107 are still employed. Sixteen
currently hold senior posts within the company.
Our strategy is focussed on recruiting individuals at the
beginning of their careers and working closely with them to
develop and nurture their talent. Our preference is to use our
existing talent pool to fill available posts, placing an emphasis
on succession planning and developing future leaders.
Apprenticeship programme
In March 2012, we launched a pilot apprenticeship scheme in
our Aberdeen office for local school leavers seeking to pursue a
career in the operations division. This scheme stems from the
recognition that there are many talented individuals who want
to get straight into the workplace from the classroom, as an
alternative to higher education. If successful, we will open the
scheme to a wider community across the Group.
We pride ourselves on recruiting a diverse group of talented
individuals for our summer internship programme which, for
many, provides a stepping stone to a career at Aberdeen. Our
internships provide a unique insight into our company, our
people and our culture and, due to the quality of the individuals
we recruit, the interns fill most graduate positions available.
We have embedded our graduate rotation programme
within the business over the last three years and increased
the numbers of hires significantly. We have engaged with the
We operate in 31 offices in
100% return to work rate on employees
23 countries and our workforce is
represented by 49 different nationalities.
who have taken maternity and
paternity leave this year.
In 2010/2011: 89%
Age composition of our workforce
Employee turnover rate:
2011/12: 8%
16-25
26-35
2010/11: 13%
36-45
Absenteeism per employee:
46-55
2011/12: 2.0 days
56-65
2010/11: 1.9 days
65+
0
In 2012, we hired 71 interns,
5 apprentices and have 49 employees
on the graduate programme.
5 years average
employee tenure including,
Aberdeen defines a manager as someone who has at least one person reporting into them.
For those employees who joined Aberdeen as a result of an acquisistion.
12
Corporate Responsibilty Report
600
800
1000
2,061 employees globally of which 567 are managersA
We are committed to gender equality
52%
48%
for continuous service.B
B
400
Temporary
Full-time employees make up 96% of our workforce
7 years
A
200
Permanent
63% managers
37% managers
18 hours average training per employee
In 2010/2011: 18 hours
Learning, development and talent
management
By providing learning and development opportunities, on-thejob coaching and mentoring, we aim to ensure that everyone
who works at Aberdeen has the resources they need to learn
and build their own career.
Mentoring
The focus of our mentoring scheme is to support employees
in the business with their progression and development at all
levels. Mentoring enhances personal and career development
and, as a consequence, helps to create a sustainable talent
pipeline. The role of the mentor is to independently offer advice
and guidance to allow the individual the opportunity to develop
their skills, knowledge and ability.
Following a successful pilot last year, all UK employees have the
opportunity to be mentored by an experienced member of staff
from a different area of the business. We currently have 50
mentoring matches in the UK and anticipate that this number
will grow in the coming year. We are also in the process of
expanding the scheme in Europe and the US and plan to
establish an Asian programme.
Succession planning
Our global succession plan is in place for the Group
Management Board (GMB), department heads and country
heads. Our target for 2012/2013 is to extend succession
planning to key managerial roles.
Appraisals and professional development
Annual appraisals for all employees are at the core of our
development process, providing an opportunity to discuss
performance, set objectives and identify areas for future
development. Mid-year appraisals are encouraged but are
voluntary and at the discretion of line managers. This year,
our competence and ethics committee emphasised the
importance of all employees completing individual continued
professional development (CPD) records relevant to their role
and recommended that a minimum of 35 hours relevant CPD
is completed for approved persons and those covered by the
administrative threshold competency regime. The GMB fully
supports performance management and CPD reporting and
data on completion rates is provided to them on a regular
basis. In addition, quality checks are performed on CPD
records to ensure the accuracy of reported data.
Development opportunities
To meet the training needs of our global workforce, we
introduced an online learning platform to provide learning
opportunities covering business skills, IT training, products
and markets, diversity and engagement, leadership and
management, and professional examinations. We recognise
that for individuals in some areas of the business, professional
training is necessary to ensure that they are proficient in the
skills required for their jobs. Those wishing to pursue a career
in fund management are expected to complete relevant
regulatory examinations and, in some regions, the Investment
Management Certificate (IMC) and Chartered Financial
Analyst (CFA) qualifications are required. Employees may
also pursue other qualifications, should their business areas
deem it necessary.
Competitive compensation
Rewarding employees for their contribution is key to
recruiting and retaining a talented workforce. To ensure
that our employees are paid a competitive compensation
package, we regularly benchmark our offering against that
of competitors in our different regions. In additional to a
basic salary, we offer a generous benefits package to part
time and full time employees. The composition of this varies
globally depending on local legislation, social benefits and
market practice.
We continue to place emphasis on the performance of the
Group and recognise the importance of senior employee
share ownership to align employee interests with those of
shareholders and company performance. We continue to offer
some of our senior employees a deferral into a limited range of
Aberdeen funds, aligning our bonus scheme with the interests
of our clients.
At the Board level, the Chairman of our remuneration
committee has consulted widely with shareholders and
industry groups over the course of the past year to discuss
and develop our own executive remuneration policy.
Equality and diversity
As a global organisation with customers which span a
multitude of countries, cultures and professions, we view
diversity as a valuable business asset. We strive to be an
employer of choice in the 23 countries in which we operate and
to provide an environment in which everyone is treated equally.
We have formalised our commitment to non-discrimination in
our global equal opportunities policy which can be found in the
staff handbook and, in addition, we have a Group wide
anti-harassment policy.
We are active members of a number of associations including
Women on Boards (UK), the Philadelphia Chamber of
Commerce and the Women in Investing Network (US). In
addition, we are currently piloting a maternity coaching
programme in the UK so that those women who are going
on and returning from maternity leave feel supported by the
business during this period.
www.aberdeen-asset.com
13
Human Rights
We uphold the Universal Declaration of Human Rights in all our operations. While only a small percentage of the workforce are
members of recognised trade unions, Aberdeen employees are open to join collective bargaining agreements. The participation
in these agreements is largely dependent on local employment legislation and country norms. All employees are encouraged to
share their opinions with line managers or human resources representatives in locations where an employee delegate or works
council is not present.
Health, Safety & Wellbeing
We place great importance on the health and safety of our employees.
We adhere to standards set by statutory regulations and to industry codes, guidelines and practices. Regular health and safety
inspections and training are undertaken in each of our offices and, as required by law, we record all incidents and near misses in
the UK. Any accidents which do take place are recorded electronically on our HR system and monitored on an ongoing basis
with actions taken as required. In both the current and prior year, there were no reportable accidents or lost time incidents in
our Asian, UK or US offices.
This year, we have recognised that we
need to move the agenda from basic health
and safety compliance to elevating wellness
and engagement. Potential benefits of this
include a more productive workforce,
improved attendance and better retention
and recruitment. This heightened focus
was largely driven by our US business where
the rising cost of health care remains a
priority. In our Philadelphia office, an
extensive wellbeing microsite was
developed and fairs held to promote the
benefits of a healthy lifestyle and offer
Employees from the Philadelphia office taking part in the National Walk at
advice. At least in part attributable to
Lunch Day campaign.
these efforts, our US health insurance
premium for the current year fell significantly.
In the UK, we followed suit, holding wellbeing events in our largest offices. In addition, in our Asian, Nordic and US offices,
annual health assessments are available to all employees.
Within the company, flu is the most common reason for sickness absence. To help tackle this, we offer annual flu inoculations in
Australia, Canada, the Nordic Region, Singapore, Thailand, the UK and US. Going forward, we intend to monitor sickness absence
figures more closely to identify our priorities. We will also engage with managers to ensure that data is being recorded where
possible as, for legislative reasons, some locations such as Denmark, Germany and Norway are unable to report absence type.
FUTURE PLANS
In 2013, we plan to extend our employee engagement programme by piloting our first employee survey in our European offices.
This will provide greater insight for assessing people and workplaces issues and establishing means of addressing them.
We also aim to build on the global approach to our people programme, recognising that regular communications enables the
sharing of best practice, generation of new ideas and the ability to address any problems that arise on a Group wide basis. We
recognise the importance of data collation and so will work to develop global reporting and, in addition, aim to further embed
CR training into our corporate culture.
14
Corporate Responsibilty Report
Suppliers
We recognise that good practice in corporate responsibility extends to the indirect social, environmental
and ethical impact that arises from our supply chain.
In 2010, we started our supplier engagement programme, gathering data on our global spending patterns and engaging with our
largest suppliers to establish their policies relating to environmental management, health and safety, people and human rights, and
charity and community investment. This year we also introduced a CR questionnaire into the tendering process for significant new
contracts. In addition, we reviewed global spend to establish whether our largest suppliers had changed. Due to the nature of our
business, we found that they had not changed signigicantly.
Our supplier strategy is three pronged – global, regional and local. Global contracts relate to functions where it is necessary to
have Group wide cohesion, for example, back office functions and those associated with investment decisions. Some purchasing is
then carried out on a regional level; for example, it makes commercial sense to source all computers in the UK from one provider.
But we also understand the importance of fostering long term community partnerships with local suppliers such as cleaners and
catering suppliers.
We aim to work with suppliers who share our business standards and, over the course of the next year, following the global
implementation of our procurement policy, we hope to increase our engagement with our largest suppliers, recognising our
responsibility not only to encourage our suppliers to operate in a responsible manner but also to mitigate risks across our
own operations.
www.aberdeen-asset.com
15
Community & charity
We recognise our responsibility to make a positive impact in the communities in which we operate. This
year marks a milestone in the Group’s philanthropic activities with the launch of the Aberdeen Asset
Management Charitable Foundation (the Foundation).
The Foundation
The Foundation was established in March 2012 with the aim of expanding and formalising philanthropic giving across the Group.
Two core focuses were identified by the Board - emerging markets and local communities, reflecting our ambition to give back to
those areas which are a key strategic focus of the business and to build on the established pattern of giving to communities in
which Aberdeen employees live and work.
Under the emerging markets focus, in year one we have chosen to support a project in Brazil, given the multiple issues of
disadvantage that exist there, our long term investment focus in the country and local presence. The Foundation has made an
initial six-figure donation to Action for Brazil’s Children Trust (ABC Trust), a charity dedicated to helping the street children and
most vulnerable young people of Brazil (see boxed text).
At a community level, we have encouraged local Foundation committees to seek partnerships with smaller charities where funds
can be seen to have a meaningful and measurable impact and where employees can use their time and skills to support the
selected projects.
In the first seven months of operation, we supported 46 charities in 14 of our global office locations. Details of a selection are set
out below. In the coming financial year, we aim to identify at least one charity partner in every city in which we have an office.
The ABC TRUST
“Setting up the Aberdeen Asset Management Charitable
This charity was established in 1998 and solely
Foundation has allowed us to take a global approach
works in Brazil to support deprived children. It
seeks to promote social change through projects
to corporate giving for the first time. The focus on
targeting education, shelter, care and advice.
emerging markets, where we invest a sizable
The Aberdeen donation will support three connected
amount on behalf of our clients, is a theme
initiatives over the next three years: rebuilding families,
close to our hearts. I am delighted that
reconnecting children with education and promoting basic
Aberdeen employees chose to support
literacy in deprived communities in Recife, Salvador
and São Paulo.
the ABC Trust and the work it undertakes
in some of the most impoverished
parts of Brazil.”
Anne Richards, Chief Investment Officer of Aberdeen
Asset Management and Chairman of the Foundation
Supporting underprivileged young people and education has always been a focus of our charitable giving. In line with this, we have
chosen to support The Place2Be (Edinburgh), Envision (London) and SkillForce (Aberdeen), all of which seek to raise the aspirations
and achievements of children who may otherwise be at risk of leaving school without the skills they need to reach their potential.
In the US, we have worked with Cradles to Crayons, a charity that provides children from birth through to age 12 living in homeless
or low-income situations, with the essential items they need to thrive at home, at school and at play. These basics include clothing,
school supplies and toys.
One of the charities our Sydney office chose to partner with is Whitelion, an organisation for young people involved in the youth
justice system or at risk of involvement. Through role-modelling, mentoring, employment and indigenous programmes and
outreach services, this charity works to reconnect troubled young people with their local communities to prevent offending and
re-offending. The Swedish office voted to support a similar organisation in Stockholm called Bryggan.
16
Corporate Responsibilty Report
Total monetary contribution to
charity
2011/12 : £611,000
2010/11 : £453,000
2009/10 : £245,000
Local offices have also donated money and time to projects aimed
at rebuilding communities in the aftermath of disasters. In Japan,
we are supporting Tono Magokoro Net, building pizza ovens for
the 2011 earthquake and tsunami-hit Tohoku area residents. The
aim of the project is to help start building the foundations of an
entrepreneurial framework to rejuvenate the local economy.
Survivors of the disaster still live in temporary housing and projects
that provide people with the opportunity to come out and start
something new gives a sense of anticipation for the future which is
still sorely needed. In Milan, we supported the reconstruction of the
Carpi Theatre which was damaged by the earthquake in May 2012.
Note: This includes donations made by the Foundation, Aberdeen and
GAYE employer contributions but excludes unspent contributions
made by Aberdeen to the Foundation.
Charitable activity outside the Foundation
Strategic sponsorships such as Cowes Week and the Scottish Open mean that we have been able to go beyond the Foundation
to help charities. This year, we have partnered and supported Toe in the Water, Befrienders Highlands and the Children’s Hospice
Association Scotland, creating meaningful associations with some less well known charities.
Elsewhere in the UK, we are also one of the sponsors of London’s Air Ambulance which operates the capital’s only helicopter
emergency medical service and we continue to support the Lord Mayor’s London Appeal, which is aimed at improving the lives
of disadvantaged young people in London.
Volunteering
In 2011, we established a Volunteer Leave programme enabling all permanent
employees to take up to two days per annum for voluntary work.
Volunteer leave date
1,824 hours
The level of employee engagement and volunteering is growing and we are actively
seeking partners where we can use the broad skills of our employees to help make a
positive difference to local charities.
2010/11: 840 hours
2012/13 target: 2,500
hours
After our first full year, 11% of employees globally had volunteered their time and
experience in a diverse spectrum of activities. We are proud to say that this exceeded
the 10% target we set. We will continue to extend our target in this area as the
feedback we receive supports our assertion that a successful volunteering programme
benefits our communities, the individual volunteers and the business as a whole.
11% employee
participation
2010/11: 7%
2012/13 target: 15%
Cradles to Crayons
In August, thirty employees from the Philadelphia office participated in the
Cradles to Crayons ‘Backpack-a-thon’ charity event at Lincoln Financial Field,
home of the Philadelphia Eagles. The event involved hundreds of volunteers from
different corporations and organisations and was aimed at providing adequate
school supplies for children in need throughout the area.
Employee participation in charitable activities
We also actively encourage employees’ personal charitable activities throughout the Group. Employees have taken part in many
activities including running marathons, abseiling and cycling to raise money for their chosen charities which have included Action
Against Hunger, Maggie’s Cancer Caring Centres, Prostate Cancer and Women’s Aid.
In the UK, we were awarded the Gold Payroll Giving Quality Mark Award as more than 10% of employees donate through the Give
As You Earn (GAYE) payroll giving scheme. Through this scheme, we offer to match all charitable contributions made by employees
up to a maximum of £1,000 per month.
www.aberdeen-asset.com
17
GRI assessment
This year we have chosen to align our report to the GRI G3 Sustainability Reporting Framework, supporting
our commitment to transparency. This disclosure has not been externally assured by a third party and
therefore the information below is self-assessed based on a pragmatic interpretation of the guidelines.
KEY
Yes
No
Partial
Not material
A. STANDARD DISCLOSURES: PROFILE
Profile
Disclosure
(yes/partial/no)
Reference / comments
Strategy and analysis
1.1
Statement from the most senior decision maker of the organisation
(for example, CEO, Chairman, or equivalent senior position) about the
relevance of sustainability to the organisation and its strategy
CR report – Welcome by the Andrew Laing
(Deputy CEO and Head of the CR Steering
Committee)
1.2
Description of key impacts, risks, and opportunities
CR report – Welcome; CR strategy,
materiality & stakeholder engagement
Organisational profile
2.1
Name of the organisation
Aberdeen Asset Management PLC
2.2
Primary brands, products, and/or services
Annual report
2.3
Operational structure of the organisation
Annual report
2.4
Location of organisation’s headquarters
Annual report
2.5
Number of countries where the organisation operates
Annual report
2.6
Nature of ownership and legal form
Annual report
2.7
Markets served (including geographic breakdown, sectors served, and types
of customers/beneficiaries)
Annual report
2.8
Scale of the reporting organisation
Annual report
2.9
Significant changes during the reporting period regarding size, structure, or
ownership
Annual report
2.10
Awards received in the reporting period
Annual report
Reporting parameters
3.1
Reporting period (e.g., fiscal/calendar year) for information provided
1 October 2011 to 30 September 2012
3.2
Date of most recent previous report (if any)
December 2011
3.3
Reporting cycle (annual, biennial, etc.)
Annual
3.4
Contact point for questions regarding the report or its contents
[email protected]
3.5
Process for defining report content
CR report – Welcome; CR strategy,
materiality & stakeholder engagement
3.6
Boundary of the report
We report on all aspects of the business.
3.7
State any specific limitations on the scope or boundary of the report
We report on all aspects of the business.
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities,
outsourced operations, and other entities that can significantly affect
comparability from period to period and/or between organisations
All entities in the Group are covered by the
report in the current and prior year.
3.9
Data measurement techniques and the bases of calculations
Where possible we use international
standards and measurement techniques.
The techniques adopted have been
disclosed within each section.
3.10
Explanation of the effect of any re-statements of information provided in
earlier reports, and the reasons for such re-statement
No restatement required.
3.11
Significant changes from previous reporting periods in the scope, boundary,
or measurement methods applied in the report
No significant changes on prior year.
3.12
Table identifying the location of the standard disclosures in the report
This GRI appendix.
3.13
Policy and current practice with regard to seeking external assurance for
the report
Once again we have chosen not to have our
report independently assured given its
limited length and data content and the
extensive internal review process in place at
Aberdeen.
18
Corporate Responsibilty Report
Profile
Disclosure
(yes/partial/no)
Reference / comments
Governance, commitments and engagement
4.1
Governance structure of the organisation, including committees under the
highest governance body responsible for specific tasks, such as setting
strategy or organisational oversight
CR report – Corporate governance
4.2
Indicate whether the Chairman of the highest governance body is also an
executive officer
CR report – Corporate governance
4.3
For organisations that have a unitary board structure, state the number
and gender of members of the highest governance body that are
independent and/or non-executive members
CR report – Corporate governance; Annual
report
4.4
Mechanisms for shareholders and employees to provide recommendations
or direction to the highest governance body
CR report – CR strategy, materiality &
stakeholder engagement
Social and environmental performance do not impact compensation.
Linkage between compensation for members of the highest governance
body, senior managers, and executives (including departure arrangements),
and the organisation’s performance (including social and environmental
performance)
Annual report – Remuneration report
4.6
Processes in place for the highest governance body to ensure conflicts of
interest are avoided
Annual report – Corporate governance
report
4.7
Process for determining the composition, qualifications, and expertise of
the members of the highest governance body and its committees
Annual report – Corporate governance
report
4.8
Internally developed statements of mission or values, codes of conduct,
and principles relevant to economic, environmental, and social
performance and the status of their implementation
CR report – Our values
Our CR Super Policy covers our seven pillar
areas and can be accessed by all employees.
4.9
Procedures of the highest governance body for overseeing the
organisation’s identification and management of economic, environmental,
and social performance, including relevant risks and opportunities, and
adherence or compliance with internationally agreed standards, codes of
conduct, and principles
The CR Steering Committee is chaired by
Andrew Laing, Deputy CEO. The committee
meets every two months to discuss
developments, achievements and issues
faced. Andrew Laing reports the PLC Board
directly.
4.10
Processes for evaluating the highest governance body’s own performance,
particularly with respect to economic, environmental, and social
performance
Annual report
4.11
Explanation of whether and how the precautionary approach or principle is
addressed by the organisation
We adopt a precautionary approach to
environmental management, as set out in
our group wide Environmental Policy
(available on our website). We recognise
that our activities have both direct and
indirect impacts on the environment and
the communities in which we operate and
so accept our responsibility to identify and
manage these impacts as effectively as
possible.
4.12
Externally developed economic, environmental, and social charters,
principles, or other initiatives to which the organisation subscribes or
endorses
We have been a member of the FTSE4Good
Index since 2002, are a signatory to the
UNPRI and CDP and this year our UK
business achieved ISO 14001 certification.
Further details can also be found on the
CR website.
4.13
Memberships in associations (such as industry associations) and/or
national/international advocacy organisations
CR report – Corporate governance
4.14
List of stakeholder groups engaged by the organisation
CR report – CR strategy, materiality &
stakeholder engagement
4.15
Basis for identification and selection of stakeholders with whom to engage
CR report – CR strategy, materiality &
stakeholder engagement
4.5
Social and environmental performance
does not impact Board compensation.
www.aberdeen-asset.com
19
Profile
Disclosure
(yes/partial/no)
Reference / comments
4.16
Approaches to stakeholder engagement, including frequency of
engagement by type and by stakeholder group
CR report – CR strategy, materiality &
stakeholder engagement
4.17
Key topics and concerns that have been raised through stakeholder
engagement, and how the organisation has responded to those key topics
and concerns, including through its reporting
CR report – CR strategy, materiality &
stakeholder engagement
B. STANDARD DISCLOSURES: PERFORMANCE INDICTORS
1.Environment
Performance indicators
Disclosure
(yes/partial/no)
Location of disclosure
Materials
EN1
Materials used by weight or volume
As an office based company our operations
do not consume significant quantities of
raw materials.
EN2
Percentage of materials used that are recycled input materials
Not material because Aberdeen does not
use significant quantities of recycled
materials.
EN3
Direct energy consumption by primary energy source
This information is not currently available.
EN4
Indirect energy consumption by primary source
This information is not currently available.
Total water withdrawal by source
As an office based company our operations
do not have a significant impact on water
consumption.
Energy
Water
EN8
Biodiversity
EN11
Location and size of land owned, leased, managed in, or adjacent to,
protected areas and areas of high biodiversity value outside protected
areas
Not material to Aberdeen as our offices are
located in urban areas and therefore do not
have a material impact on protected areas
or areas of high biodiversity outside of
protected areas.
EN12
Description of significant impacts of activities, products, and services on
biodiversity in protected areas and areas of high biodiversity value outside
protected areas
As above.
Emissions, effluent and waste
EN16
Total direct and indirect greenhouse gas emissions by weight
2,138 tonnes - 2.5 tonnes/FTE
EN17
Other relevant indirect greenhouse gas emissions by weight
3,055 tonnes - 3.5 tonnes/FTE
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved
CR report – Envrionment
EN19
Emissions of ozone-depleting substances by weight
As an office based company, Aberdeen does
not have any activities that result in
significant air emissions other than those
incorporated within GHG reporting.
EN20
NOx, SOx, and other significant air emissions by type and weight
As above.
EN21
Total water discharge by quality and destination
As an office based company, our operations
do not result in significant water discharge.
EN22
Total weight of waste by type and disposal method
46.9 tonnes of general waste - 56.9kgs/FTE
85.9 tonnes recyclable waste - 104.0kg/FTE
EN23
20
Total number and volume of significant spills
Corporate Responsibilty Report
The only area where this may be relevant is
in the refuelling of emergency generators.
No significant spills took place in the
reporting year.
Performance indicators
Disclosure
(yes/partial/no)
Location of disclosure
Products and services
EN26
Initiatives to mitigate environmental impacts of products and services, and
extent of impact mitigation
CR report – Environment & Responsible
investing
EN27
Percentage of products sold and their packaging materials that are
reclaimed by category
Not applicable to Aberdeen’s operations.
Compliance
EN28
Nil
Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with environmental laws and regulations
2. Human rights
Performance indicators
Disclosure
(yes/partial/no)
Location of disclosure
Investment and procurement practices
HR1
Percentage and total number of significant investment agreements and
contracts that include clauses incorporating human rights concerns, or that
have undergone human rights screening
This information is not currently available.
HR2
Percentage of significant suppliers, contractors and other business partners
that have undergone human rights screening, and actions taken
CR report - Suppliers
Non-Discrimination
HR4
This information is not currently available.
Total number of incidents of discrimination and corrective actions taken
Freedom of Association and Collective Bargaining
HR5
CR report – People and Suppliers
Operations and significant suppliers identified in which the right to exercise
freedom of association and collective bargaining may be violated or at
significant risk, and actions taken to support these rights
Child Labour
HR6
Given the nature of our business this is not
a material risk.
Operations and significant suppliers identified as having significant risk for
incidents of child labour, and measures taken to contribute to the effective
abolition of child labour
Forced and Compulsory Labour
HR7
Given the nature of our business this is not
a material risk.
Operations and significant suppliers identified as having significant risk for
incidents of forced or compulsory labour, and measures to contribute to
the elimination of all forms of forced or compulsory labour
3. Labour practices and decent work
Performance indicators
Disclosure
(yes/partial/no)
Location of disclosure
Employment
LA1
Total workforce by employment type, employment contract, and region,
broken down by gender
CR report – People
LA2
Total number and rate of new employee hires and employee turnover by
age group, gender, and region
CR report – People
Labour/management relations
LA4
Percentage of employees covered by collective bargaining agreements
CR report – People
LA5
Minimum notice period(s) regarding significant operational changes,
including whether it is specified in collective agreements
Minimum notice periods, where applicable,
are governed by state or local law.
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Performance indicators
Disclosure
(yes/partial/no)
Location of disclosure
Occupational health and safety
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and
number of work related fatalities by region and by gender
CR report – Health, safety & wellbeing
LA8
Education, training, counselling, prevention, and risk-control programs in
place to assist workforce members, their families, or community members
regarding serious diseases
CR report – Health, safety & wellbeing. No
employees are involved in occupational
activities which have a high risk of specific
serious diseases.
Training and education
LA10
Average hours of training per year per employee by gender, and by
employee category
CR report – People
LA11
Programs for skills management and lifelong learning that support the
continued employability of employees and assist them in managing career
endings
CR report – People
LA12
Percentage of employees receiving regular performance and career
development reviews by gender
CR report – People
Diversity and equal opportunity
LA13
LA14
Composition of governance bodies and breakdown of employees per
employee category according to gender, age group, minority group
membership, and other indicators of diversity
CR report – People
Ratio of basic salary and remuneration of women to men by employee
category, by significant locations of operation
This information is not currently available.
Given the global nature of our business it is
not possible to define minority groups on a
worldwide scale.
4.Society
Performance indicators
Disclosure
(yes/partial/no)
Location of disclosure
Local community
SO1
Percentage of operations with implemented local community engagement,
impact assessments, and development programs
CR report – Community & charity
Corruption
SO2
SO3
SO4
Percentage and total number of business units analyzed for risks related to
corruption
CR report – Anti bribery and corruption
Percentage of employees trained in organisation’s anti-corruption policies
and procedures
CR report – Anti bribery and corruption
Actions taken in response to incidents of corruption
CR report – Anti bribery and corruption
All employees and business units are
assessed.
All employees are trained in our antibribery and corruption policies and
procedures.
No incidents of corruption took place in the
past three years.
Public policy
SO5
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Public policy positions and participation in public policy development and
lobbying
Corporate Responsibilty Report
Aberdeen does not have a formal policy on
lobbying practices. However, as one of the
UK’s largest listed independent fund
managers, we are asked from time to time
to give house views on regulatory policy
and business issues, and are invited to take
part in an increasing number of public
forums, whether conference, media or trade
association related. We therefore have a
formal policy committee in place which is
chaired by the Head of Public Affairs.
Performance indicators
SO6
Disclosure
(yes/partial/no)
Location of disclosure
It is the Group’s policy not to make
contributions for political purposes.
Total value of financial and in-kind contributions to political parties,
politicians, and related institutions by country.
Anti-competitive behaviour
SO7
No such actions were faced in the financial
year.
Total number of legal actions for anti-competitive behaviour, anti-trust,
and monopoly practices and their outcomes
Compliance
SO8
No such fines or sanctions were incurred in
the financial year.
Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with laws and regulations
5. Product responsibility
Performance indicators
Disclosure
(yes/partial/no)
Location of disclosure
Customer health and safety
PR1
Due to the nature of the business our
products and services do not have
significant health and safety risks.
Life cycle stages in which health and safety impacts of products and
services are assessed for improvement, and percentage of significant
products and services categories subject to such procedures
Product and service labelling
PR3
In most of the countries in which we
operate there are strict regulations which
govern product and service information. We
ensure that we comply with these
standards.
Type of product and service information required by procedures and
percentage of significant products and services subject to such information
requirements
Marketing communications
PR6
Programs for adherence to laws, standards, and voluntary codes related to
marketing communications, including advertising, promotion, and
sponsorship
All financial promotions and image
advertising are reviewed by the Compliance
department via an internal database prior
to distribution.
PR7
Total number of incidents of non-compliance with regulations and
voluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship by type of outcomes
There were no such incidents in the
financial year.
Customer privacy
PR8
There were no such complaints in the
financial year.
Total number of substantiated complaints regarding breaches of customer
privacy and losses of customer data
Compliance
PR9
There were no such fines in the financial
year.
Monetary value of significant fines for non-compliance with laws and
regulations concerning the provision and use of products and services
6.Economic
Performance indicators
Disclosure
(yes/partial/no)
Location of disclosure
Economic performance
EC1
Economic value generated and distributed, including revenues, operating
costs, employee compensation, donations and other community
investments, retained earnings, and payments to capital providers and
governments
Annual report
EC2
Financial implications and other risks and opportunities for the
organisation’s activities due to climate change
CR report - Environment
EC3
Coverage of the organisation’s defined benefit plan obligations
Annual report
EC4
Significant financial assistance received from government
None
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Performance indicators
Disclosure
(yes/partial/no)
Location of disclosure
Market presence
EC6
Policy, practices, and proportion of spending on locally-based suppliers at
significant locations of operation
CR report - Suppliers
EC7
Procedures for local hiring and proportion of senior management hired
from the local community at significant locations of operation
We operate in 23 countries and our
workforce is represented by 49 different
nationalities. Sixteen different nationalities
are represented by our Country Heads.
EC8
Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind, or pro
bono engagement
CR report – Community & charity
7.Financial services – sector specific guidelines
Performance indicators
Disclosure
(yes/partial/no)
Location of disclosure
Product portfolio
FS1
Policies with specific environmental and social components applied to
business lines
CR report – Responsible investing
FS2
Procedures for assessing and screening environmental and social risks in
business lines
CR report – Responsible investing
FS3
Processes for monitoring clients’ implementation of and compliance with
environmental and social requirements included in agreements or
transactions
CR report – Responsible investing
FS4
Process(es) for improving staff competency to implement the
environmental and social policies and procedures as applied to business
lines
CR report – Responsible investing
FS5
Interactions with clients/investees/business partners regarding
environmental and social risks and opportunities
CR report – Responsible investing
FS6
Percentage of the portfolio for business lines by specific region, size (e.g.
micro/SME/large) and by sector
This information is not currently available.
FS7
Monetary value of products and services designed to deliver a specific
social benefit for each business line broken down by purpose
CR report – Responsible investing
FS8
Monetary value of products and services designed to deliver a specific
environmental benefit for each business line broken down by purpose
CR report – Responsible investing
Coverage and frequency of audits to assess implementation of
environmental and social policies and risk assessment procedures
Annual internal audits for responsible
investing policies and procedures.
Audit
FS9
Active ownership
FS10
Percentage and number of companies held in the institution’s portfolio
with which the reporting organisation has interacted on environmental or
social issues
CR report – Responsible investing
FS11
Percentage of assets subject to positive and negative environmental or
social screening
CR report – Responsible investing
FS12
Voting polic(ies) applied to environmental or social issues for shares over
which the reporting organisation holds the right to vote shares or advises
on voting
This information is not currently available.
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Corporate Responsibilty Report
121000556