2012 SUSTAINABILITY REPORT SUSTAINABILITY REPORT

Transcription

1 2012 SUSTAINABILITY REPORT SUSTAINABILITY REPORT

2 TABLE OF CONTENTS 2 CEO Letter Sustainability Highlights 9 About SunGard 11 SunGard Businesses 12 Financial Systems 12 Availability Services 13 Public Sector & K-12 Education 13 Business Changes in Managing for Sustainability 15 Sustainability Risks 15 Employee Engagement 16 Environmental Data 17 Management Structure 18 Policies and Commitments 19 Stakeholder Engagement 23 Serving Our Customers 25 SunGard Financial Systems Solutions 25 SunGard Availability Services IT Solutions 26 Focusing on Information Security 31 Addressing Our Energy and Climate Impacts 33 Measuring and Managing Energy Efficiency 34 Managing our Building Portfolio 36 Reducing Travel, Reducing our Footprint 37 SunGard s Global Environmental Stewardship 38 Social Performance 39 Engaging Our Employees 40 Learning and Development 42 Employee Resource Groups 43 Promoting Health and Wellness 44 Strengthening Our Supply Chain 45 Engaging in Responsible Sourcing 45 Supporting Supplier Diversity 46 Reaching Out to Communities 48 Governance and Ethics 49 Corporate Governance 50 Ethics 51 About this Report 53 GRI Index 27 Environmental Performance 28 Measuring Performance 29 Performance Summary: Scope 2 GHG Emissions 30 Performance Summary: Scope 3 GHG Emissions 30 Managing Risk SUSTAINABILITY REPORT

3 CEO LETTER SUSTAINABILITY REPORT

4 CEO LETTER As one of the world s leading software and technology services companies, SunGard works continuously to focus on the right priorities and initiatives that will improve our company, add value for our clients and make SunGard a great workplace environment for our employees. We recognize that in order to do so, we must maintain a balanced approach that aligns our business strategy with SunGard s core values, including our commitment to responsible environmental, social and governance practices. We are proud to release our fifth annual Sustainability Report this year, which showcases the progress of our programs, practices and analytics implemented since our initial report in We expanded our employee engagement efforts, provided additional resources to promote talent and development, advanced sustainability targets and improved transparency for our stakeholders. All of these changes enhance our business, some of which are a direct response to our first global employee survey. Listening to the interests of our customers and employees helps us to adapt our strategies and plan our business for the long term. Across our operations, we continued to implement more efficient practices and identify areas for opportunity. For example, this year we released a new global travel policy which better aligns employee travel with business needs, and greatly expanded the access and diversity of communication technology available to employees. These actions resulted in a 20 percent reduction in air miles flown per employee, exceeding our 2014 air mile reduction target of 10 percent, two years ahead of schedule. While we continue to face the challenge of balancing energy efficiency with business growth in our Availability Services segment, overall we saw a decline in our electricity consumption across the company, which translates to a 12 percent reduction in our CO 2 e emissions. As we move forward, we plan to explore new technology and best practices to improve our data center efficiency, and support energy efficiency efforts within our owned and leased office spaces. We believe we can create significant positive change through engaging our employees, stakeholders and the communities we work in around these efforts. Within SunGard, we are quickly expanding our employee resource groups, including our newly formed Sustainability Action Network and Women s Initiative Network to allow employees a space to develop and share their ideas across the company and communities we reach. We continue to partner with our private equity sponsors on these issues as well, working to set goals and participating in their sustainability leadership programs. With respect to our customers, we work to align with their standards as a supplier. SunGard s five year track record of reporting is emblematic of the company s commitment to accountability and transparency. I am proud of our progress, and encourage you to learn more about our initiatives described in the report. We invite you to provide feedback, as we welcome the opportunity to learn from all of our stakeholders. Sincerely, Russ Fradin president and chief executive officer SunGard SUSTAINABILITY REPORT

5 2012 SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY REPORT

6 2012 SUSTAINABILITY HIGHLIGHTS Achieved 20 percent reduction in air miles per employee, surpassing target of 10 percent reduction in air miles per employee by Achieved 12 percent reduction in SunGard s global CO 2 e emissions from our electricity consumption in our business offices and data centers. Achieved LEED for Existing Building (EB) Gold certification for our Burlington, Massachusetts office. Installed improved video conferencing facilities at 50 of the largest regional offices and expanded our web based communication technology, providing alternatives to travel. Launched Asset Disposal Program in the Availability Services business, collecting around 2,500 assets of obsolete SunGard equipment in the first two months of the program, including computers, servers and storage devices for secure reuse, resale or recycling. Launched the global Sustainability Action Network to support local green teams, and grew to 20 teams in 10 countries across all SunGard businesses. Grew the Global Sustainability Council to over 40 members from eight countries and 10 U.S. states SUSTAINABILITY REPORT

7 2012 SUSTAINABILITY HIGHLIGHTS The following chart highlights SunGard s progress and goals over the past year: Transparency and Accountability 2012 GOALS PROGRESS HIGHLIGHTS FUTURE GOALS Continue to improve the accuracy and relevance of sustainability reports and disclosures Continue reporting in alignment with the Global Reporting Initiative (GRI) Guidelines Environment Improve accountability of SunGard business leaders regarding environmental risks and opportunities Publish quantitative progress towards environmental performance targets Availability Services: Reduce energy use and GHG emissions (Data Centers) Financial Systems: Track PUE at largest Financial Systems data centers Reduce energy use and GHG emissions (Offices) Achieve LEED Existing Building certification for Burlington, Massachusetts office Completed full assessment of 2012 Greenhouse Gas (GHG) emissions data and data collection process with SunGard s Corporate Audit team Continued to expand data capture for EMEA energy consumption (Scope 2 GHG emissions) Applied GRI G3 Sustainability Reporting Guidelines at the B Level Global Sustainability Council grew to over 40 members worldwide across all business divisions Continued participation in KKR s Green Portfolio Program and TPG s Sustainability Leadership Council Included quantitative progress towards environmental performance targets in 2012 Sustainability Report Experienced an increase in energy use in our North American data centers between 2011 and 2012, due to business growth Continued tracking Power Usage Effectiveness (PUE) at largest Financial Systems data centers Reduced energy use seven percent and GHG emissions eight percent in our software and processing business offices Achieved LEED EB Gold certification for Burlington, Massachusetts office Complete full materiality analysis process by 2014 Continue data assessment with SunGard s Corporate Audit Team, and implement recommendations in 2013 Continue reporting in alignment with the GRI Guidelines, transition report to GRI G4 guidelines for 2014 report Evaluate sustainability targets and strategy with executive leaders Continue implementing technology and operations best practices to minimize energy usage and emissions Achieve ENERGY STAR certification in the largest Financial Systems data center by 2014 Reduce energy use in our software and processing business offices 15 percent by SUSTAINABILITY REPORT

8 2012 SUSTAINABILITY HIGHLIGHTS 2012 GOALS PROGRESS HIGHLIGHTS FUTURE GOALS Environment (cont.) Reduce energy use and GHG emissions (Business Travel) 10 percent reduction in air miles per employee by 2014 Install improved video conferencing Continue implementing technology and operations best practices to minimize energy usage and emissions Promote environmental stewardship Pursue materials conservation, reuse and recycling initiatives Cultivate a culture in which employees understand, value and support SunGard s commitment to sustainability Launch global Sustainability Action Network to support local green teams Implemented global employee travel policy Achieved 20 percent reduction in air miles per employee, surpassing target of 10 percent reduction in air miles per employee by 2014 Increased web based communication technology available to employees Installed improved video conferencing facilities at 50 of the largest regional offices Launched Asset Disposal Program in Availability Services, and collected over 2,500 assets of obsolete SunGard electronic equipment for secure reuse, resale or recycling in first two months Developed Green Hotel guide for employees Initiated regional Waste Management policies, began development of employee Waste Management guide Annual Earth Month events held across SunGard offices Launched Sustainability Action Network, expanded to 20 teams in 10 countries across SunGard Hosted Employee training: --Sustainability Action Network workshops --LEED Green Associate course for facility managers Develop and deploy a formal telecommuting program by 2014 Pursue expansion of Asset Disposal Program to Financial Systems by 2013 Launch Employee Waste Management Guide and supporting resources Continue to expand Sustainability Action Network and supporting sustainability resources Establish annual employee corporate social responsibility award by SUSTAINABILITY REPORT

9 2012 SUSTAINABILITY HIGHLIGHTS 2012 GOALS PROGRESS HIGHLIGHTS FUTURE GOALS Employees Support a culture within which people from all backgrounds can succeed Develop and conduct all-employee survey in FY 12 Create role of Employee Engagement and Global Diversity and Inclusion to lead diversity, inclusion and employee engagement programs Communities Align pro bono work with SunGard s specific technological skills and resources Encourage and support employees in philanthropy and volunteerism efforts Supply Chain Increase the percentage of supplier dollars spent with diverse suppliers Conducted first all-employee survey across SunGard Created director of Employee Engagement role to lead diversity, inclusion and employee engagement programs Introduced formal employee resource groups; Women s Initiative Network, Flexible Work Committee, Sustainability Action Network, and Internal Communication Council Named 2012 Computerworld Honors Laureate, for work with Mifos, the Grameen Foundation s open source technology platform for microfinance institutions (MFI) Hosted first SunGard Java Developer Academy in South Africa, to support junior developers and education for students from disadvantaged backgrounds Raised $130,000 for the American Red Cross for relief efforts related to Hurricane Sandy in the United States Continued to measure and achieved internal goals of increased spending with certified minority vendors Conduct second all-employee survey in 2013 Expand Diversity & Inclusion employee resource groups Establish a strategic community investment program aligned with SunGard s business and technology expertise Establish SunGard volunteer employee resource group Continue to measure the percentage of supplier dollars spent with diverse suppliers SUSTAINABILITY REPORT

10 ABOUT SUNGARD SUSTAINABILITY REPORT

11 ABOUT SUNGARD SUNGARD AT A GLANCE SunGard is the largest privately held business software and services company More than 350 offices in 30 countries More than 17,000 employees Approximately 25,000 customers in more than 70 countries Approximately $4.26 billion in revenue Ranked 480 on the 2012 Fortune 500 SunGard is one of the world s leading software and technology services companies. We provide software and processing solutions to financial services, K-12 education and the public sector. We also provide disaster recovery services, managed IT services, information availability consulting services and business continuity management software. Through these services, we support mission-critical operations of financial institutions, businesses, local governments, public safety and justice agencies, as well as educational institutions around the world. It is through our commitment to doing things the right way and doing them well that we have earned the continuing trust of our customers. SunGard is a privately held company. In August 2005 it was acquired in a leveraged buy-out by a consortium of private equity investment funds associated with Bain Capital Partners; The Blackstone Group; Goldman, Sachs & Co.; Kohlberg Kravis Roberts & Co. (KKR); Providence Equity Partners; Silver Lake and TPG (formerly known as the Texas Pacific Group). On January 19 and 20, 2012, the Company completed the sale of its Higher Education business, combining SunGard Higher Education with Datatel, Inc. Data for Higher Education is no longer included in this Report, and we have adjusted our GHG emissions through a baseline recalculation. SUNGARD CORE VALUES The foundation of everything we do at SunGard is an uncompromising commitment to the highest standards of ethical behavior, honesty and fair dealing. We believe that our most valuable asset, both as individuals and as a company, is our reputation for excellence and doing the right thing Sales Distribution For further information about SunGard s business strategy and financial performance, please read the 2012 Form 10-K Revenue by Segment 2012 Revenue by Customer Location Public Sector & Education 5% Canada Asia/Pacific 6.5% 4% 2% Other UK 10% Availability Services 33% $4.263bn Cont. Europe 13.5% $4.263bn 62% Financial Systems 64% US 1 Revenue for fiscal year ended December 31, 2012 was $4.2 billion. This figure does not include about $331 million in 2012 revenue from discounted operations. (PAGE K) SUSTAINABILITY REPORT

12 SUNGARD BUSINESSES Financial Systems Availability Services Public Sector & K-12 Education Business Changes in SUSTAINABILITY REPORT

13 SUNGARD BUSINESSES Financial Systems SunGard Financial Systems (FS) provides mission-critical software and IT services to institutions in virtually every segment of the financial services industry, serving approximately 15,000 clients in over 70 countries. These solutions meet a multitude of needs, but support a common aim: to help drive our customers unique business strategies whether that means increasing efficiency, improving customer service, complying with regulations or capturing growth opportunities through innovation. We deliver many of our solutions as an application-service provider, primarily from our data centers located in North America and Europe. We also deliver solutions by licensing software to customers for use on their own computers and premises. Our FS business offers software and technology services to a broad range of users, including asset managers, chief financial officers, compliance officers, custodians, fund administrators, insurers and reinsurers, market makers, plan administrators, registered investment advisors, treasurers, traders and wealth managers. Availability Services More than 8,000 businesses and institutions across North America and Europe rely on SunGard s Availability Services to help them keep their people connected with the information they require in order to do business. SunGard helps these organizations minimize their exposure to threats with the potential to interrupt their operations, through a range of information availability solutions, technology and systems management services for application and data center outsourcing, as well as business continuity consulting services and planning software. Since inception, we have helped customers recover from unplanned interruptions resulting from major disasters including hurricane Sandy in 2012, Tohoku earthquake and tsunami in 2011, the Gulf Coast hurricanes in 2008, widespread flooding in the UK in 2007, hurricane Katrina and Gulf Coast hurricanes in 2005, Florida hurricanes in 2004, the Northeast U.S. blackout in 2003, and the terrorist attacks of September 11, SUSTAINABILITY REPORT

14 SUNGARD BUSINESSES Public Sector & K-12 Education SunGard Public Sector and K-12 Education provide solutions to meet the specialized needs of local, state and federal governments; public safety and justice agencies; public and private schools, utilities, nonprofits and other public sector institutions. Our K-12 Education software serves over eight million students, in 1,500 school districts throughout the United States. More than 150 million citizens in North America live in municipalities that rely on our Public Sector products and services. Learn more about Our Businesses. Business Changes in 2012 In 2011, SunGard sold its Higher Education business. The sale was finalized January 19 and 20, 2012, and information for this business unit is not included in this report. The Company still retains its K-12 Education business. The sale of Higher Education has been accounted for in our 2012 Report, and we have adjusted our GHG emissions through a baseline recalculation. SunGard also acquired two businesses in The acquisitions were small and mostly software related. Consequently, they did not have a significant impact on SunGard s sustainability performance. We have nonetheless included these newly acquired businesses within the scope of this report. Please visit our website for more information about SunGard s 2012 acquisitions SUSTAINABILITY REPORT

15 MANAGING FOR SUSTAINABILITY Sustainability Risks Employee Engagement Environmental Data Management Structure Policies and Commitments SUSTAINABILITY REPORT

16 MANAGING FOR SUSTAINABILITY By effectively managing our sustainability risks and opportunities, we improve our competitiveness and create value for our stakeholders, including our customers, employees, private equity sponsors and the communities in which we operate. We seek to align our environmental, social and governance initiatives with strategic priorities, such as our emphasis on lean operation and creating a great employee experience. In 2011, SunGard conducted a stakeholder evaluation to better understand which environmental, social, governance and economic issues were most relevant to our stakeholders. We have established the goal to complete a full materiality assessment by 2014, to review these issues with our executive leaders and to align them with our business and corporate sustainability strategy going forward. Sustainability Risks Employee Engagement We also know that we need to cultivate a talented, motivated and engaged workforce across all business divisions in order to grow globally and continue to deliver innovative solutions to our customers. We strive to make sustainability relevant to every employee, in order to create stronger personal connections to the work that we do and to build a foundation for long-term thinking and innovation. In 2012, we made progress in reaching out to employees by conducting the company s first employee engagement survey, to better understand our employees needs and opportunities for development in the organization. See our Social Performance section for full details on the employee survey. We have identified aspects of our operations that pose the greatest risks from an environmental perspective. Foremost among these risks are energy use and carbon emissions related to data centers in our Availability Services business, which contributed to over 85 percent of our electricity consumption in Our energy needs and carbon footprint dictate to some degree our exposure to energy prices and potential carbon regulations. Higher insurance premiums and physical vulnerability to extreme weather events associated with global climate change present additional risks. We have made progress addressing our key environmental impacts, decreasing our total Scope 2 CO 2 e emissions (related to purchased electricity) by 12 percent and total Scope 3 CO 2 e emissions (related to employee air travel) by seven 7 percent since See our Environmental Performance sections for full results. Sustainability at SunGard is about improving our competitiveness, reducing our risks and being a responsible corporate citizen SUSTAINABILITY REPORT

17 MANAGING FOR SUSTAINABILITY Environmental Data Above all, we seek to be transparent and accountable to our communities and stakeholders. We centralized operational responsibilities and expanded the scope of our data in 2011, while in 2012, we undertook an internal verification process with SunGard s Corporate Audit team to establish a more complete understanding of our data and information sources. Given our history of growth through acquisitions over time, we are still working to consolidate information across our company. In regard to Sustainability, we are focused on improving the quality of our GHG emissions data collected and expanding our reporting scope over time. To do so, we are implementing systems that will enable us to better measure, track and report on our environmental and social performance. Working to improve the accuracy and transparency of our sustainability risks and data, SunGard s Corporate Audit team conducted a thorough review of the Company s GHG emission data collection process and content for the 2012 Sustainability Report. This included internal verification of GHG emission data, focused heavily on the company s largest environmental impacts of office and data center electricity consumption and employee airline travel, as well as an assessment of these data sources across all SunGard business segments. Through this effort, we discovered a number of areas where we can improve our data collection and analysis of the data provided. Going forward, Corporate Audit will continue to provide valuable feedback and oversight into this process. We communicate our progress with the publication of external sustainability reports based on the Global Reporting Initiative Guidelines, and annual voluntary disclosure to the Carbon Disclosure Project. In addition, we publish updates through internal newsletters, our social enterprise network, and SunGard s intranet and Internet sites to inform SunGard employees and our stakeholders about our efforts. SunGard Corporate Audit was proud to partner with the Sustainability reporting team and lend assistance in reviewing the design and effectiveness of the data collection process. Through this project we were able to identify ways to enhance the validation of data sources and improve data accuracy across SunGard s primary energy use categories. We also offered suggestions for automating the data collection process and expanding coverage, which will help add value to future sustainability reports. Audit Team Lead Corporate Audit Team SUSTAINABILITY REPORT

18 MANAGING FOR SUSTAINABILITY Management Structure SunGard s Employee Engagement, Communications and Corporate Citizenship team sits within the human resources function, with our vice president of Corporate and Internal Communications and director of Employee Engagement reporting to the senior vice president, Chief Human Resources Officer. The team manages the day-to-day development and implementation of SunGard s sustainability strategy. It regularly interfaces and collaborates with leaders from across the company, including the chief compliance officer and vice presidents and directors of procurement, travel, real estate and information technology. We expanded the management structure in 2012, with the addition of our director of Employee Engagement, who leads the company s diversity, inclusion and employee engagement programs. To integrate the ideas of our employees in our sustainability strategy, SunGard s team also helps lead the initiatives instituted by SunGard s employee resource groups to engage with and empower employees and foster a culture of global awareness and understanding. Private Equity Sustainability Programs Global Sustainability Council Diversity and Inclusion Council Chief Human Resources Officer Employee Engagement, Communications and Corporate Citizenship Private Equity Sponsors Employee Resource Groups Office Engagement Committees Chief Legal Officer Office of Compliance and Business Ethics Procurement Board of Directors CEO Senior Vice President, Global Business Services & Technology Procurement Travel Real Estate Information Technology SUSTAINABILITY REPORT

19 MANAGING FOR SUSTAINABILITY SunGard s Global Sustainability Council and Sustainability Action Network promote sustainability internally. The Council is composed of approximately 40 members worldwide from across all business divisions. It includes representatives from eight countries and 10 U.S. states. It meets monthly to share insights, establish priorities and organize awareness and training events. The Sustainability Action Network was launched in the beginning of 2012 as a new way to formalize efforts of local green teams and provide additional resources and opportunities for employees to get involved. Currently there are over 20 Sustainability Action Teams globally, with team leaders that participate in the Global Sustainability Council. Learn more about the Sustainability Action Network s people and projects in our Global Environmental Stewardship section of the Report. SunGard s progress on sustainability issues are regularly reported to the executive team and the company s private equity investors sustainability managers, who provide oversight and guidance on key issues. The executive team updates the board of directors annually and responds to any requests made by our private equity investors to establish specific sustainability targets and supporting initiatives. Policies and Commitments We have established policies to ensure that all employees are aware of SunGard s expectations and requirements for responsible operation. Our Global Business Conduct and Compliance Program provides an overarching framework for day-to-day decision-making and is supported by other policies, including: Sustainability Policy Privacy Policy Global Diversity and Inclusion Statement Information Security Policy Facilities operations guidance We also have policies and marketing guidelines on issues including privacy, zero spamming, truth in advertising and protecting client information and data SUSTAINABILITY REPORT

20 STAKEHOLDER ENGAGEMENT SUSTAINABILITY REPORT

21 STAKEHOLDER ENGAGEMENT The issues we found to be most important to our stakeholders include: Climate change Energy use Environmental management systems Employee satisfaction Transparency Community engagement Recycling and e-waste Responsible sourcing In 2011 we conducted a stakeholder evaluation to gain a clearer perspective on the environmental, social, governance and economic issues of highest importance to our stakeholders, which includes our customers, employees, private equity investors, suppliers, and the communities where we do business. We reviewed issues relevant to SunGard and its sustainability performance, and analyzed stakeholder sources such as customer RFPs and information requests, employee feedback, trade association priorities, peer reports, ratings and rankings criteria and requirements related to global disclosure standards such as the Global Reporting Initiative (GRI) Guidelines, in order to arrive at a prioritized list of key issues. We used the results to focus our report on the issues that are most material to our stakeholders. In addition, we used these findings to advance our sustainability program in 2012, such as launching our Sustainability Action Network for SunGard employees, and providing increased access to materials and information around these areas. We have set the goal to complete a full materiality assessment by This will help to maintain a current understanding of our stakeholders key environmental, social, governance and economic issues, and also expand the understanding of our materials issues within the company. We plan to use these findings to advance our sustainability strategy and impact. (report) Communicating with our Stakeholders Using multiple channels to engage and communicate with our stakeholders, we are able to identify issues, trends and opportunities, while responding in a timely and effective manner. We do not track engagement by type or frequency for every stakeholder group. Some meetings are conducted on a set schedule, e.g., the Global Sustainability Council meets monthly; others occur as needed based on the organization or type of stakeholder. As a part of our knowledge sharing and education practices, we participate in KKR s Green Portfolio Program and TPG s Sustainability Leadership Council SUSTAINABILITY REPORT

22 STAKEHOLDER ENGAGEMENT The following chart summarized our engagement efforts by stakeholder: STAKEHOLDER ENGAGEMENT STRATEGIC RELEVANCE OF ENGAGEMENT Private Equity Sponsors Participation in TPG Capital s Sustainability Leadership Council We are owned by a consortium of private equity investors. We engage in frequent communication with these sponsors to ensure that the Company s business strategy, goals and objectives are aligned with their expectations. Participation in KKR s Green Portfolio Program We also participate in specific operational sustainability programs that are Regulatory filings, annual and quarterly reports managed by some of our private equity investors. Annual meetings, board interactions Customers Requests for Information Conversations during the sales process Ongoing discussions through support service and account management Collaborations to develop new products and services Participation in CDP supply chain information requests By maintaining open lines of communication with our customers, we can identify and address areas of weak performance, deliver innovations to meet customer preferences and better understand and anticipate changing market conditions. Employees Information provided to prospective and newly-hired employees Performance evaluations, professional development and training SunGard Sustainability Council and Sustainability Action Network Communication through s; announcements; quarterly internal newsletters; SunGard Sustainability Works intranet; and sustainability groups on our enterprise social network Events, including Earth Month, Earth Month Challenge and Energy Expeditions Sustainability training Our continuous, two-way communication with employees ensures that we effectively set out expectations for performance, understand and respond to concerns and maintain a working environment that is inclusive, professional and productive. In 2012, we will created a new way for employees to become even more involved in promoting sustainability at SunGard through the launch of our Sustainability Action Network SUSTAINABILITY REPORT

23 STAKEHOLDER ENGAGEMENT STAKEHOLDER ENGAGEMENT STRATEGIC RELEVANCE OF ENGAGEMENT Communities Pro bono and philanthropic projects Volunteer work We build stronger ties with communities by encouraging employees to volunteer their time, skills and talents, and though our business practices we seek to be a responsible corporate citizen in the communities in which we operate. Industry and Trade Associations Participation in trade associations and industry groups including: Corporate Eco Forum The Green Grid Boston College Center for Corporate Citizenship GreenBiz Executive Network Suppliers Continuing dialogue through sales and procurement processes Supplier diversity tracking program We continued our membership in several industry groups and our work with non-governmental organizations in order to share knowledge and best practices on sustainability issues. By participating in these organizations, we benefit from the opportunity to work jointly on issues and gain new technical expertise and operational knowledge. Our stakeholders care not only about the impacts of SunGard s own operations but also the sustainability of our overall supply chain. We are working to ensure responsible sourcing through conversations with our vendors SUSTAINABILITY REPORT

24 SERVING OUR CUSTOMERS SunGard Financial Systems Solutions SunGard Availability Services IT Solutions Focusing on Information Security SUSTAINABILITY REPORT

25 SERVING OUR CUSTOMERS SunGard employees work to put our clients first, while maintaining our core values, which are an uncompromising commitment to the highest standards of ethical behavior, honesty and fair dealing. We believe that our reputation for excellence and for doing the right thing is our most valuable asset, both as individuals and as a company. In 2012 SunGard launched targeted solutions to address our client s key areas of change and concern. Our products and services help our customers to meet their commitments; enable organizations to report to internal and external stakeholders, comply with laws and regulations and operate more efficiently; and leverage networks for growth. Although we do not complete organization-wide customer satisfaction surveys, we partner with our clients to understand their needs, provide more relevant and innovative solutions and maintain transparency within our communications. Some of our 2012 recognition for our work with clients includes: FinTech 100 Rankings, Top 5 Preferred Vendors, SunGard Financial Systems Energy Risk s US and Europe Awards 2012, Regulatory Advisory Firm of the Year, SunGard Global Services 2012 Risktech 100 Rankings, 3rd Overall Technology Vendor, SunGard Financial Systems Banking Technology Readers Choice Awards, Best Trading System 2012 in, SunGard s Front Arena and Best Risk Management Product or Service 2012, SunGard s Adaptiv SUSTAINABILITY REPORT

26 SERVING OUR CUSTOMERS SunGard Financial Systems Solutions Increase Transparency, Reduce Risk SunGard s flexible software solutions enable customers to better utilize environmental, social and corporate governance (ESG) data, effectively manage trading in energy commodities and futures and implement energy efficiency projects, including smart grid strategies, among others. Examples include: MarketMap MarketMap global market data terminals address ESG data for our customers. The information is based on daily screenings of media sources and an analysis that quantifies the data and assigns each company a global and reputational risk score. Using this tool, investors are able to compare companies sustainability performance and identify those poised to capitalize on attractive positioning as well as those facing greater ESG risks. Aligne and Kiodex We have also developed products to help clients track, manage and hedge against future emissions regulations and volatile commodity prices. Our emissions trading and management module, Aligne, was originally developed for the EU trading scheme. It supports all trading schemes and provides carbon futures tracking. Similarly, Kiodex, which currently provides airline emissions futures and commodity risk management for corporations, banks and hedge funds, is now being further developed to help airlines comply with emissions regulations. Smart Grid Strategies SunGard researched each state s regulatory landscape, then created state-specific stakeholder engagement plans based on local regulations, market needs and available resources. This offering helps clients focus on energy efficient projects. Smart Grid Implementation We provide assistance on integrating new equipment and software into existing systems. We support the development and installation of the IT infrastructure needed to communicate, process and store data. SunGard Availability Services IT Solutions Provide Data Storage, Reduced Environmental Impact SunGard s IT solutions provide clients with improved data storage reliability and flexibility while reducing related energy usage, costs and GHGs SunGard provides managed hosting, software and infrastructure as a service We also help clients manage the IT and data centers they operate themselves through consulting services regarding Green IT, data center infrastructure management and storage optimization SUSTAINABILITY REPORT

27 SERVING OUR CUSTOMERS Focusing on Information Security Information is integral to all SunGard products and services and is a critical asset of the Company. SunGard is committed to ensuring the integrity, reliability, availability and confidentiality of its data and computer systems. To maintain this standard of excellence, SunGard considers information security to be of paramount importance and an essential cornerstone of its operations. SunGard internal information security practices are based on the International Standards Organization 27001:5 standard, the most widely accepted information security standard. SunGard s senior management has mandated that information security be carried out as an ongoing operational function, with oversight by an Information Security Steering Committee and consisting of senior Corporate Officer representatives from our Legal, Finance, Compliance, Operations, HR and Information Security departments. Day-to-day technical and operational responsibilities are carried out by our Global Security and IT Risk department. This department consists of information security professionals located across each segment of our business in the Americas, Europe, India and Asia. They evaluate security vulnerabilities, maintain security-related policies and procedures, train personnel, monitor systems and design and implement technologies to mitigate information security risks. Specific responsibilities include: Developing security policies, standards and procedures and other elements of an infrastructure to support information security. Applying information security and risk requirements emanating from external bodies, such as government agencies and standards setting groups. Developing, presenting and managing the dissemination of information security awareness and training materials. Investigating alleged information security breaches and if necessary, assisting with disciplinary and legal matters to support information security. Coordinating the monitoring of information security activities throughout the organization, including the preparation of periodic status and progress reports. Providing consulting assistance on implementation of information security controls (e.g. encryption system deployment, secure telecommunications and secure application system development procedures). Architecting control measures and independent security assessments to improve information security (including evaluating and selecting products and services). Serving as liaison between the various groups dealing with information security matters (e.g. legal, audit and compliance departments). Representing the organization on information risk matters to external groups SUSTAINABILITY REPORT

28 ENVIRONMENTAL PERFORMANCE Measuring Performance Performance Summary: Scope 2 GHG Emissions Performance Summary: Scope 3 GHG Emissions Managing Risk SUSTAINABILITY REPORT

29 ENVIRONMENTAL PERFORMANCE CHALLENGES TO ENERGY AND GHG REDUCTION IN AVAILABILITY SERVICES The majority of our energy and climate impacts are linked to data centers in our Availability Services business. Although SunGard implements energy efficiency practices in our data centers, some impacts are not under our direct control. For example, as part of our Managed Services solution, we host customer equipment at our data centers, thus assuming the energy and emissions footprints of the equipment. In most cases, this equipment is not under our direct control, and we therefore are not able to dictate its level of efficiency. Growth in our business directly translates to additional customer equipment that consumes more energy. Measuring Performance SunGard s most significant environmental impacts are energy use and GHG emissions related to the Company s data centers and offices. In order to develop effective strategies and programs to minimize these impacts, we must be able to accurately measure and track energy use and emissions across our global operations. Consolidating data from facilities around the world, SunGard s energy and environmental management system helps to precisely track our energy use and determine where our carbon emissions originate. Through SunGard s Corporate Audit team s assessment of the strength of our GHG emissions data and data collection, they were able to provide internal assurance and reliability of the quantified information. They reviewed this data and its sources through interviews with key internal stakeholders, document reviews and sample tests of data. The team s recommendations will be applied to our GHG emissions data collection process moving forward. We know that data centers in our Availability Services division account for of the majority of SunGard s energy use and GHG emissions. Accordingly, one of our goals is to continue to increase the efficiency of these data centers and apply best practices in infrastructure and operations where feasible. Given the nature of the managed services and colocation businesses, this represents our greatest sustainability challenge. As part of our commitment to transparency around energy use and GHG emissions, SunGard has reported to the Carbon Disclosure Project since See our 2013 CDP Climate Change Investor Response. Another complicating factor in determining the appropriate level of investment in energy efficiency efforts and facility and equipment upgrades is that SunGard has publicly expressed its intent to spin off the Availability Services business at some point in the natural course of private equity investment in SunGard. The uncertainty surrounding the sale of the business affects decisions relating to the time horizon of investments and anticipated return. Despite these challenges, we can work towards improving the infrastructure that supports the IT equipment, including cooling and lighting efficiency. We continue to explore new technology and best practices to improve data center efficiency SUSTAINABILITY REPORT

30 ENVIRONMENTAL PERFORMANCE SunGard s total Scope 2 CO 2 e emissions (emissions related to purchased electricity) and the amount of energy used from continuing operations decreased 12 percent between 2011 and While Scope 2 CO 2 e emissions related to SunGard s North America data centers increased, those for Availability Services overall decreased by 12 percent during this period. Although we continue to face the challenge of managing our electricity consumption in leased spaces, SunGard s real estate management, operational best practices and employee office initiatives have contributed to these reductions. We continue to use our 2010 emissions data as our baseline for energy and GHG emissions reduction goals. SunGard s total Scope 3 CO 2 e emissions (emissions related to employee air miles traveled) achieved a 20 percent reduction in air miles per employee, surpassing SunGard s target of a 10 percent reduction in air miles per employee by Since 2011, total CO 2 e emissions from employee air travel were reduced approximately seven percent. This was achieved through the implementation of a global employee travel policy and increased availability of web based communication and collaboration technology. Performance Summary: Scope 2 GHG Emissions In 2012, SunGard s total Scope 2 GHG emissions (emissions related to purchased electricity) decreased by 12 percent. GHG emissions related to SunGard s Availability Services decreased 12 percent. SCOPE 2 GHG EMISSIONS (TONNES OF CO 2 e) Availability Services 459, , ,353 Financial Systems 59,694 63,738 59,064 Public Sector & K-12 8,032 5,953 4,941 Corporate Total 527, , ,767 We use our 2010 emissions data (adjusted to reflect the 2012 sales of the Higher Education business) as our baseline for energy and GHG emissions reduction goals. This approach provides the most accurate and complete view of our data, as we expanded the amount of GHG emissions data collected and implemented in our energy and environmental management system in The following table shows Scope 2 GHG emissions by division for SCOPE 2 GHG EMISSIONS (TONNES OF CO 2 e) AVAILABILITY SERVICES (primarily data center space) FINANCIAL SYSTEMS, PUBLIC SECTOR, K-12 EDUCATION, CORPORATE (primarily office space) TOTAL COMPANY-WIDE GHG EMISSIONS Absolute emissions 411, , ,767 Emissions per employee Emissions per revenue dollars (millions) SUSTAINABILITY REPORT

31 ENVIRONMENTAL PERFORMANCE Performance Summary: Scope 3 GHG Emissions Travel-based Scope 3 GHG emissions for 2012 were tonnes of total CO 2 e emissions from air travel or 0.95 tonnes per employee. Since 2011, total CO 2 e emissions from employee air travel were reduced approximately seven percent and CO 2 e emissions per employee decreased by 20 percent. See our Reducing Travel, Reducing Our Footprint for full details on these results. SCOPE 3 EMISSIONS (TONNES OF CO 2 e) Availability Services 1, , ,665.2 Financial Systems 12, , ,448.1 Public Sector & K-12 1, , ,018.4 Corporate Total 15, , ,374.1 Managing Risk With greater precision in measurement comes a greater ability to manage risk. For example, SunGard is subject to local and national laws, policies and regulations related to mitigating carbon emissions and other environmental impacts. In the UK, SunGard s exposure to the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme means that if we use more than a certain amount of electricity, we will need to pay for related emissions. Another example is the UK Climate Change Levy (CCL) a charge on energy usage for business and the public sector that was introduced to encourage energy efficiency. Climate Change Agreements (CCAs) under the CCL give energy intensive organizations a discount on the levy if they achieve energy efficiency targets. In order to manage our risk exposure, we are exploring opting into an alternative CCA with our industry peers, via an industry body that will lobby the UK Government. In addition to our emphasis on reducing energy use and GHG emissions, we continue to work with our private equity sponsors, including TPG s Sustainability Leadership Program and KKR s Green Portfolio Program, to implement best practices and ownerspecified sustainability programs. For more information about SunGard s participation, please visit KKR s Green Portfolio Program site SUSTAINABILITY REPORT

32 ADDRESSING OUR ENERGY AND CLIMATE IMPACTS Measuring and Managing Energy Efficiency Managing Our Building Portfolio Reducing Travel, Reducing Our Footprint SunGard s Global Environmental Stewardship SUSTAINABILITY REPORT

33 ADDRESSING OUR ENERGY AND CLIMATE IMPACTS SunGard continues to pursue three primary strategies to reduce its energy use and related GHG emissions: IMPROVE OPERATIONAL EFFICIENCY IN DATA CENTERS SunGard has approximately five million square feet of data centers Consolidate data centers to the extent feasible Use virtualization to minimize the number of physical servers (virtualization software enables multiple servers to use just one physical piece of hardware) Use optimal hardware and software configurations to maximize energy efficiency Re-commission data center equipment and HVAC systems for greater efficiency REDUCE ENERGY WASTE IN OFFICES SunGard has about three million square feet of office space Consolidate office space Encourage employee Energy Expeditions to identify opportunities for efficiency Install energy-saving lighting equipment such as high-efficiency lamps, motion sensors and timers Implement policies and encourage employees to turn off lighting and electronic devices during periods of non-use Utilize green leasing guidelines in real estate activities DECREASE BUSINESS TRAVEL IMPACTS SunGard employees traveled 92 million air miles in 2012 Use online collaboration tools and video conferencing to replace in-person meetings Enhance travel tools to encourage alternatives to travel Preferentially select environmentally responsible airlines and car rental companies Establish a formal telecommuting program to reduce the impact of daily commutes When feasible, site new facilities near mass transit SUSTAINABILITY REPORT

34 ADDRESSING OUR ENERGY AND CLIMATE IMPACTS Measuring and Managing Energy Efficiency We continue to explore opportunities to improve the energy efficiency of our data centers. One metric that we use is Power Usage Effectiveness (PUE), a ratio of a data center s total energy use as compared to the energy used just for IT equipment. The theoretical best PUE is 1.0; currently, the average PUE of our Financial Systems data centers is estimated at We assess the feasibility of any given practice or technology based on total overall value including projected return on investment, energy savings potential and alignment with SunGard s overall strategic direction. SUNGARD S SALEM, NEW HAMPSHIRE DATA CENTER REDUCES COOLING THROUGH IMPROVED DESIGN The Salem, New Hampshire data center underwent a series of upgrades to the space in 2012, involving the removal of several walls that had divided the data center, to improve the cooling of the space along with creating a more consistent temperature throughout the data center. During this project, two primary Liebert air conditioning units were replaced with newer, more efficient units. Once this project was completed not only were cooling goals accomplished, but the amount of energy required to properly cool the data center was reduced SUSTAINABILITY REPORT