Core is defined as all active partners, associates and employees. Inactive includes all partners, associates and employees that are long-term absent.

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1 Responsible Business Report 2012/13 - Basis of Reporting The Basis of Reporting outlines the scope of each of the key performance indicators in our 2013 responsible business report covering the period from 1 May 2012 until 30 April The data in the report covers all 28 offices, unless specified otherwise. Freshfields has an exclusive association in Riyadh with Salah Al-Hejailan. This association is not included within our reporting boundary. I. Our people We are reporting on the following data: Number of employees, by gender and region Percentage of female partners Number of reportable accidents (London only) Participation rate in Global Engagement Survey Number of employees is average headcount (unless otherwise specified) including core and inactive staff. Headcount refers to each individual person as one and thus does not consider any part-time arrangements. In case of time splits between various offices or departments the headcount considers the assignment percentage to avoid any double counting in totals. Core is defined as all active partners, associates and employees. Inactive includes all partners, associates and employees that are long-term absent. Partners are all equity and fixed share partners of the firm as well as former partners that work on a self-employed basis. Associates are all lawyers associated with the firm employed or self-employed; associates are usually fully qualified to practice law. Business Services include all employees working in internal, non legal and secretarial roles. Trainees are trainee lawyers in countries with a formal legal training system like the UK. Other fee earners are legal interns, i.e. aspiring lawyers and law students that stay with the firm for a limited period of time to obtain legal work experience. Top Management is defined as the members of the Partnership Council, those in senior management (Senior Partner, Executive Partner, Managing Partner), Regional managing partners (RMPs) and Office Managing Partners (OMPs). LONBS /3 HR

2 As a UK LLP, where we are reporting on ethnicity data from a UK perspective. Our systems allow us to collect Learning and Development (L&D) data for lawyers in London only. Our systems have been updated so that L&D initiatives for other employees will be reported in the next report. The figures for HR and diversity and inclusion were taken from our HR systems. The data for Health & Safety was taken from our accident reporting systems. Regions are defined as follows: Asia: Beijing, Hanoi, Ho Chi Minh City, Hong Kong, Singapore Shanghai, Tokyo DACEE: Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg, Munich, Vienna London MENA: Abu Dhabi, Bahrain, Dubai ROCE: Amsterdam, Barcelona, Brussels, Madrid, Milan, Moscow, Paris, Rome US: New York and Washington II. Financial data The financial data reported was taken from our LLP accounts. The data for 2013 will be filed in January III. Environment Comparability of data from year to year may be affected by changes in the methodology used, and other factors. Where year on year comparability has been materially impacted, this is made clear in the report. There is also a potential for local interpretation of reporting guidelines to influence uncertainty of data. Although this is minimized through communication with all offices. Page 2

3 Carbon Emissions Data Carbon Emissions were calculated using the Greenhouse Gas Protocol, Bilan Carbone, Defra, Environment Canada, EPA (E-Grid), EPA, IEA and NGA conversion factors. Data is reported in tco 2 e. Where we are referring to "by capita", this means calculation by average number of employees as described above but also includes contingency staff and external on-site suppliers. During the reporting year the approach used in the Greenstone Carbon Management System has changed. Data for 2011/12 and 2010/11 has therefore been restated. All data for the Singapore office has been estimated. Scope Scope 1 - Direct Greenhouse Gas (GHG) Emissions GHG emissions from sources that are owned or controlled by the organisation e.g. emissions from combustion in owned or controlled boilers, furnaces and also GHG emissions from owned or controlled process equipment e.g. air conditioning systems. Scope 2 Indirect GHG Emissions GHG emissions from the generation of electricity, steam or heating/cooling consumed by an organisation, i.e. purchased or otherwise brought into the organisational boundary. GHG emissions from such sources are a consequence of the organisation s activities but physically occur at the source / facility where the electricity, steam or heating/cooling is generated. Scope 3 Indirect GHG Emissions (Other) GHG emissions resulting from business travel only, (air, rail and road). Gross and net emissions Both gross and net emissions have been reported for the past three years. Net emissions are calculated using the gross emissions and excluding taxi travel taken by Radio Taxis in London as well as Eurostar journeys taken up until September They also exclude any green tariff electricity. Page 3

4 For data collection, we are using the Greenstone Acco2unt online software tool. Offices submit spreadsheets to the CR Manger based in London. The spreadsheets are checked by the CR Manager and then loaded into the software tool. Final data is taken from the system reports; estimated data has been calculated and also loaded into the software tool.. For all offices that were unable to collect road travel data, estimations were calculated based on an average per capita using data for all other offices. Estimations were used for road travel for Amsterdam, Abu Dhabi, Bahrain, Dubai, Hong Kong, Moscow, New York, Singapore, Shanghai and Washington. Electricity consumption This was calculated from invoices supplied by power suppliers where available. Estimations based on one months actual data were used for the New York office. Green tariff electricity that was counted as zero carbon was purchased by Brussels, Frankfurt, Hamburg, and Rome and also in London since October Fifty per cent of electricity in London has been zero rated as a result - reported in the net carbon emissions. Data was estimated for Rome, Washington, and Singapore. Waste Waste is reported in tonnes. In London this data is calculated from the invoices issued by the supplier. Partial data has been supplied by some offices, the rest has been estimated using average waste per FTE in London. Paper Paper purchased is reported in tonnes. All offices provided paper purchased figures except Singapore where data was estimated. Data has been collected from individuals responsible for purchasing. Water Water data is reported in cubic metres. Actual data is reported for London calculated from invoices and meter readings. Some data has been provided by other offices, and the rest has been estimated using water use per FTE in London. IV. Community Investment and pro bono Page 4

5 We use the London Benchmarking Group methodology and guidance for collecting all our community investment and pro bono data. We calculate participation rates using average employee number, including contingency staff but excluding external on-site suppliers. We use an online database system, provided by an external organisation, Credit360, to collect all our community investment data from around our international offices. Entries into the database are made by community coordinators in each office and monitored and checked by the central team. Pro bono work is recorded using the same systems as for fee-earning work. Lawyers enter all their time against codes which relate to individual matters and clients. Reports can then be taken from the system detailing names and level (i.e. partner, associate, trainee or paralegal) of those who have recorded time relating to pro bono clients and how much time was spent on these matters. Pro bono coordinators in each office check these reports and report to the central team if there are any items that are missing or incorrect.. Once this data has been checked it is uploaded to the same online database used for community investment data. In London a third set of data, professional skills pro bono (non-fee earning staff), is also entered into the online database although it is valued at the same hourly rate as general volunteering time. Reports are then produced through the online database combining both sets of data for each country or office (other than London) which are then entered into a summary spreadsheet to give the final figures to be submitted to LBG. In London reports form the database are produced including the three sets of data: community investment; professional skills pro bono; and legal pro bono to be added into the summary spreadsheet. The total value of our contribution includes cash, the value of paid volunteering time (both community investment and pro bono hours) inkind contributions of products and services. The hourly value of general volunteering time is determined for each office individually using the following formula: (Annual employment costs / no. of full time employees) X 1,820 (52 weeks x 35 hours). The hourly value of pro bono time is determined by calculating the cost to the firm i.e. the commercial charge out rate minus the amount that is profit. This calculation is made for each different level of lawyers; partner, associate, trainee and paralegal separately and for each office individually. Page 5

6 The total value of contribution figure we declare in the report contains management costs. Definition of terms: Cash monetary amounts paid out by the firm in support of community and pro bono projects which may include direct donations, donations made to match employee fund-raising efforts and other costs associated with a project such as payments made for materials used in volunteering. Paid volunteering time time contributed by staff to community organisations during paid working hours. The value is determined by the cost to the firm using an hourly rate that reflects the employment costs of the volunteers. Pro bono volunteering time- the time contributed by staff to give legal advice for the public good. The value is calculated as the cost to the firm to provide the professional advice, not the commercial charge out rate paid by fee-paying clients. In-kind contributions contributions of products, equipment and meeting room space or other non-cash items form the firm to the community for example, used computer equipment valued as second hand. We also calculate the number of direct beneficiaries of our programmes and the ways in which they have been impacted. Direct beneficiaries are those who have been positively impacted by initiatives that have been supported by Freshfields either through funding or volunteers. The data included in our report currently only covers London, Paris, Germany and Rome. This information is collected through surveys of our community and charity partners in which they are asked to detail the beneficiaries of the Freshfields programmes, including total number of and the ways in which they have been impacted. This data is then transferred to spreadsheets and collated to five overall office or country totals. Page 6

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