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Sustainability describes what we do day in and day out at ERM: within our own operations, how we deliver our projects and through the services we provide to our clients. In FY12, we continued to sharpen our focus on sustainability to ensure it is embedded into every part of our business. ERM is a truly global company that provides worldwide consulting services and innovative solutions in more than 160 countries that help clients improve how they understand, manage and reduce their impacts on the world. Our clients are from a wide range of sectors including oil and gas, power, mining, manufacturing, chemical, pharmaceutical, consumer goods, legal and financial institutions and government.

Our Sustainability Policy and Sustainability Approach articulate our commitments to sustainability at ERM. Our vision, values and principles express our corporate philosophy of who we are and how we conduct business, while our Code of Business Conduct and Ethics provides the basis for professional, respectful and fair dealings in all of our daily operations. We focus our sustainability efforts in four broad categories to ensure that we incorporate learnings from our own operations and actions into the way we conduct our projects and provide advice to our clients. Improving the sustainability footprint of our own activities as a company. Improving the environmental, health and safety, social and community footprints of the projects and programs we undertake for our clients. Innovating and developing our core service and sector offerings to meet the evolving needs of our clients as they integrate sustainability considerations into their own business strategies, decision-making and operational processes. Managing our business with the highest standard of business conduct as we drive long-term commercial and financial success as part of achieving our sustainability goals.

Sustainability at ERM is a commitment to supporting socioeconomic development that meets the needs of the present without compromising the ability of future generations to meet their own needs. This includes minimizing society’s impact on the environment such that it can support those future needs while promoting social and economic development that allows all communities to enjoy these benefits going forward. The SAC has guided the development of this Sustainability Program through benchmarking against industry standards, setting KPIs and targets, and developing our approach to reporting in order to drive our sustainability performance. We recognize that this is a journey of continuous improvement, and this report sets out our progress in FY12.

SAC members are diverse in experience, ranging from representatives on ERM’s Executive Committee to senior operational, technical and functional leaders. A dedicated team supports the SAC, and together with focal points representing every office in the company, they drive the implementation of our Sustainability Program. In order to identify risks and opportunities that could significantly impact our business, we engaged with stakeholders across ERM. This report focuses on the key areas that were identified as the most material to our business, based on our knowledge of ERM’s operations, broader industry trends and benchmarking against peer companies in the professional consulting and advisory sector.

Through deploying our own experts on a key business challenge, we have taken a significant step in being able to drive improved sustainability performance. We recognize the need to engage stakeholders so that we can understand our sustainability impacts and how we can best respond to these through our Sustainability Program. Internally, we have worked to facilitate global collaboration, ensuring that we leverage our strong worldwide resources to deliver improved outcomes for our clients and through them, over time, our own business. UNGC and other thought leadership activities.

We also are engaged with numerous national, regional and local industry associations. The following table details our approach to stakeholder engagement, including the frequency of engagement, key topics raised and ERM’s response. Project work, client calls and visits, external website erm. EWL is based in London, United Kingdom. As noted in the Financial Performance section, Oasis was acquired during FY12, and therefore the environmental and health and safety data do not include Oasis operations. The content of this report was determined through a materiality analysis that included a structured review of current and future business risks and opportunities based on frameworks developed by the GRI and other organizations, with input from various internal stakeholders during the reporting period.

ISO 31000 approach for risk management. This report has been prepared to GRI Application Level C, and a GRI Index is available on here. We developed a broad sustainability reporting protocol to guide the data collection process. World Business Council for Sustainable Development Greenhouse Gas Protocol.

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We expect to continue to improve the robustness and depth of our data over time, in particular through implementation of a new data management system that will be in place by the end of FY13. We conducted an internal independent assurance assessment of this report, following ERM’s protocol and internationally accepted standards. We have also had a GRI check of our self-declared application Level C. Many of our employees have invested significant effort in developing this report, and without their dedication, it would not have been possible. Our commitment to becoming recognised as the world’s leading sustainability consultancy is built on the belief that harnessing the talent and passion of over 4,500 ERM employees across the world will continue to bring strong results. This report is a reflection of how important sustainability is to our people and our company.

Karina Cady, Sally Bradshaw, Susanne Etti. Alex Panayi, Barbara Winter-Watson, Claire Stevens, Deepa Shantilal, Ellen Bracquené, Louise Cameron, Matthew Fortin, Maura Connell, Renilde Becque, Roselina Ariffin, Shona King, Tracey Balding, Ursula Logan. Aubrie Fontanini, Diane Mountain, Sarah Barnett. Over 140 dedicated ERM employees who participated as Focal Points across our offices, business units and Regions. ERM Indonesia Coastal Cleanup Day, attended by ERM Indonesia employees and their families. Thought Leadership – Copyright: Global Reporting Initiative, GRI Focal Point Australia. Statement from the most senior decision-maker of the organization.

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. ERM’s registered head office is in London, United Kingdom. Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. Nature of ownership and legal form. Significant changes during the reporting period regarding size, structure, or ownership. Awards received in the reporting period.

ERM’s Sustainability Report is produced annually. Contact point for questions regarding the report or its contents. ERM conducts a materiality analysis based on frameworks developed by the GRI and other organizations. Further detail is outlined in About ERM – Out Material Issues.

Material topics are represented by our Program Areas and prioritized based on degree of stakeholder concern and current or potential business impact. ERM’s risk assessment process is based on the ISO 31000 approach for risk management. See GRI Boundary Protocol for further guidance. The programs and performance described in the report cover all locations where ERM has operational control.

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Details throughout the report as relevant to performance data. Approach is described in About This Report. Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. No significant change to scope, boundary, or measurement methods between reporting periods.

Table identifying the location of the Standard Disclosures in the report. GRI Content Index to be incorported into Online HTML Design. Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. Governance structure, including gender breakdown of our Board and Committees provided in Our People. At the close of FY12, the Board was comprised of 4 male members, and the Executive Committee was comprised of 1 female and 9 male members, all of whom are of caucasian decent.

Indicate whether the Chair of the highest governance body is also an executive officer. During FY12, our Board Chairman was not an executive officer. As of the end of FY12, the Board was composed of four individuals, all male. The Executive Committee was composed of 1 female and 9 male members. Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Several formal and informal mechanisms exist for providing information and recommendations to the Board.

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Board on a broad range of issues. Informal mechanisms for providing feedback to members of the Board include email and comments on our intranet site, employee engagement surveys and staff meetings, both in person and through virtual sessions. List of stakeholder groups engaged by the organization. Basis for identification and selection of stakeholders with whom to engage. We identify stakeholder groups as those with the potential to impact or be impacted by ERM’s business operations.

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We engage with all of these groups, as reflected in our Stakeholder Summary table. Direct 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. Financial implications and other risks and opportunities for the organization’s activities due to climate change. GHG emissions are identified as one of ERM’s most material issues, with performance targets set for office emission reduction. Direct financial opportunities and risks due to climate change are not discussed in detail. Coverage of the organization’s defined benefit plan obligations.

ERM does not operate any defined benefit pension schemes. Group companies operate various defined contribution pension schemes in countries around the world, including Australia, Hong Kong and the United Kingdom. The schemes are funded by the payment of contributions to separately administered funds. A 401K Plan is maintained by Vanguard for United States employees, to which the US employers make matching contributions.

Significant financial assistance received from government. ERM does not receive significant financial assistance from governments. Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation. Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation. Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

Understanding and describing significant indirect economic impacts, including the extent of impacts. Materials used by weight or volume. Material use reporting limited to paper. Percentage of materials used that are recycled input materials. Direct energy consumption by primary energy source.

Indirect energy consumption by primary source. Energy saved due to conservation and efficiency improvements. Energy saving initiatives identified but reductions not quanitified. Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. Initiatives to reduce indirect energy consumption and reductions achieved. Environment – Our Carbon Footprint .

Water sources significantly affected by withdrawal of water. Percentage and total volume of water recycled and reused. Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. Strategies, current actions, and future plans for managing impacts on biodiversity.

Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. Total direct and indirect greenhouse gas emissions by weight. Other relevant indirect greenhouse gas emissions by weight. Initiatives to reduce greenhouse gas emissions and reductions achieved.