SUSTAINABLE & productive

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1 SUSTAINABLE & productive SUSTAINABILITY FACTSHEET 2013

2 PROFESSIONAL EXCELLENCE 75,455 employees globally participated in our mandatory Annual Integrity Training in 2013 More than 18,000 employees have completed the sustainability e-learning over the past three years Our network of 35 SGS Academy training centres delivers culturally relevant and multilingual courses to our employees and customers globally The intervention of our Corporate Security team resulted in two million advertisements, featuring fraudulent use of the SGS brand, being removed from online sites OUR GREEN BOOK Our Green Book, introduced in 2012, tracks the financial impact of our sustainability performance. Whereas some companies have pioneered models linked to environmental profit and loss, the Green Book measures costs linked to both social and environmental performance. Using qualitative, quantitative and financial metrics to assess material sustainability risks, the tool highlights the relative and absolute costs of sustainability issues at local and Group levels. For example, the tool tracks the Group s spend on issues such as energy consumption, business travel, community investment, sickness absence and natural turnover of staff. This allows us to evaluate the total spend as being equivalent to 7% of revenue NUMBER OF EMPLOYEES COMPLETING SGS SUSTAINABILITY E-LEARNING N/A 9,488 6,594 1,941 Data covers our trend countries, representing three-quarters of revenue and two-thirds of headcount CODE OF INTEGRITY REPORTS TO HELPLINES Total number of integrity issues reported through integrity helplines CODE OF INTEGRITY INVESTIGATIONS Total number of valid reports investigated concluding in no breaches CODE OF INTEGRITY NON-COMPLIANCES Total number of breaches of the Code of Integrity identified through integrity helplines EMPLOYEES SIGNING THE CODE OF INTEGRITY Percentage of employees signing the Code of Integrity Data covers all SGS operations For in-depth information on our approach to Professional Excellence topics, performance and commitments for 2014, including Ethical Conduct, Economic Performance, Human Rights, Responsible Supply Chain and Sustainability Services, please see our online report

3 PEOPLE 26,042 employees from 21 countries responded to our CATALYST employee engagement survey. More than 550 action plans were implemented in 2013, following the results of the 2012 engagement survey 1,715 employees took part in our new Global Corporate Challenge initiative to encourage more of our employees to live healthy lifestyles More than 42,000 employees and contractors took part in our first global SGS Safety Day 12 companies were acquired by SGS in 2013 In 2013, our overall costs related to employee issues have remained stable. HELPING NEW RECRUITS TO SHINE SHINE, our global onboarding programme, welcomes and prepares new employees for life at SGS. It also supports people transferring from businesses acquired by SGS and existing SGS employees migrating across business lines and affiliates. The global roll-out, completed in December 2013, ensures that every new and transferring employee receives the support they need from their manager, HR team and a dedicated peer advisor within their first six months.

4 TARGET NATURAL TURNOVER % of employees that leave SGS each year of their own will <14.0 GENDER RATIO % male employees % female employees EQUAL OPPORTUNITY RATIO (Female managers/ female employees) / (Male managers/male employees) PERFORMANCE REVIEWS % of employees receiving regular performance reviews TRAINING HOURS Number of annual training hours/fte (Includes safety training hours) TRAINING RATIO % of total employment costs spent on training (Includes safety training hours) SICKNESS ABSENCE RATE Number of days of sickness absence as a % of total days worked TRIR The number of lost time, restricted duty, medical treatment incidents and fatalities per 200,000 hours worked LTIFR Number of lost time incidents occurring per 200,000 hours worked SAFETY TRAINING HOURS Number of annual safety training hours NUMBER OF RECORDABLE INCIDENTS The number of lost time, restricted duty, medical treatment incidents and fatalities NUMBER OF NEAR MISSES Event, situation or physical environment with the potential to cause injury, damage or loss to people, property and the environment, but which was avoided by circumstance COLLECTIVE BARGAINING Employees covered by collective consultation / representation processes < < , , , , ,982 1,904 1,818 1, Data covers our trend countries, representing three-quarters of revenue and two-thirds of headcount For in-depth information on our approach to People topics, performance and commitments for 2014, including Occupational Health and Safety, Talent Acquisition and Development, and Diversity and Equal Opportunities, please see our online report

5 COMMUNITY We have almost 300 community projects worldwide We invested CHF 368,000 in the community in % of projects support the UN Millennium Development Goals, such as ensuring environmental sustainability, eradicating extreme poverty and hunger, and achieving universal primary education. In addition, 9% of projects support disaster relief efforts* More than half of the projects are supported through employee volunteering, 15% benefit from pro bono services and the remainder are supported through sponsorships, donations and in-kind giving* *Data relates to 84 projects analysed through the global community survey. SUPPORTING THE VICTIMS OF TYPHOON HAIYAN A fundraising platform for employees was established to donate funds for the immediate relief of people affected by the disaster, with all donations being matched by the company. Locally, SGS Philippines set up an internal relief fund for victims including SGS employees and their families who had been affected. By mid-december, over CHF 22,000 of the funds were distributed to provide 29 shelter kits through Habitat for Humanity, and financial assistance to relatives of 24 local SGS employees. By mid-january 2014, total donations exceeded CHF 100,000. Our aim in the longer-term is to invest in the rehabilitation effort by funding 150 shelters for families affected by the disaster. In 2013, our employees volunteered 7,855 hours to community projects. This is a decrease of 5.0% against 2012, although overall investment in community projects has increased by 8.9% TOTAL COMMUNITY PROJECTS Total number of projects INVESTMENT IN COMMUNITY Donations to community organisations and voluntary groups ( 000 CHF) INVESTMENT IN SPONSORSHIP Sponsorship of community programmes ( 000 CHF) * 321* 338* * 554* 665* 635 Data covers our trend countries, representing three-quarters of revenue and two-thirds of headcount *constant currency basis For more in-depth information on our approach to Community topics, performance and commitments for 2014, please see our online report

6 SUSTAINABILITY MANAGEMENT SYSTEM Our global sustainability programmes inspire a wide range of initiatives across our affiliates, which are supported by our sustainability management system. SUSTAINABILITY PILLARS AND KPIs PROFESSIONAL EXCELLENCE STAKEHOLDER ENGAGEMENT CORPORATE GOVERNANCE RISK MANAGEMENT LAWS AND REGULATIONS PROCUREMENT SUSTAINABILITY SERVICES SUSTAINABILITY PROGRAMMES EXCEL SGS SUSTAINABILITY E-LEARNING PROFESSIONAL INTEGRITY SGS Group Management SA 2014 All rights reserved - SGS is a registered trademark of SGS Group Management SA. PEOPLE CODE OF INTEGRITY HUMAN RIGHTS OPERATIONAL INTEGRITY (HEALTH & SAFETY) HUMAN RESOURCES ENVIRONMENT CLIMATE CHANGE WASTE MANAGEMENT WATER MANAGEMENT BIODIVERSITY COMMUNITY COMMUNITY INVOLVEMENT FURTHER INFORMATION AND FEEDBACK BASELINE For comprehensive information on sustainability at SGS in 2013, see our online 2013 Corporate Sustainability Report available at or contact us corporate.sustainability@sgs.com For an overview see our 2013 Sustainability Highlights available at IMPROVE EQUAL EMPLOYMENT OPPORTUNITY NATURAL TURNOVER TRAINING SICKNESS ABSENCE ANNUAL PERFORMANCE REVIEW TOTAL RECORDABLE INCIDENTS HUMAN RIGHTS REDUCE ENERGY EFFICIENCY IN BUILDINGS GREEN IT GREEN CARS WASTE MANAGEMENT GREEN PROCUREMENT SUSTAINABLE CAPEX INVOLVE ALIGNMENT TO GROUP POLICY AND GUIDELINES COMMUNITY PROGRAMMES AND PROJECTS Please share your feedback via our report survey SGS2013SustainabilityReport Our various sustainability policies are available at corporate-sustainability/reports-and-policies.aspx Full sustainability data is available online at

7 ENVIRONMENT SGS has been awarded a place in the Climate Performance Leadership Index for the region Germany-Austria-Switzerland by the Carbon Disclosure Project We offset our 2013 carbon emissions as part of our commitment to building a lower carbon future We have 75 environmental projects covering areas such as Energy Efficiency in Buildings, Green Cars and Green IT We have initiated water-saving projects in water-scarce countries DOING MORE WITH LËSS In 2013, Lëss the polar bear, our eco-efficiency mascot, visited South Africa, Singapore, Spain, China, Portugal and India to spread the word on our behavioural change campaign on energy and resource efficiency to even more of our employees. In 2013, our environmental costs decreased by 6% against 2012 due to less travel and use of electricity rather than non-transport fuels. Providing the right infrastructure, such as energy efficient task-oriented lighting, more efficient equipment and localised air conditioning controls, was only the first step in reducing our energy consumption and cutting our large energy bills. This campaign brought the behavioural change needed for our employees to use these tools. People are very happy to have control of temperature levels in their respective areas and are using air conditioning less. I see more lights being turned off when people are out to meetings and also computers when they are away from their desks. This fits in very nicely with our objective of reducing energy consumption by 10% against 2012 levels. DARAJIT DAUD Senior Manager, Operational Integrity, SGS Singapore/Malaysia

8 CO 2 EMISSIONS Total annual CO 2 emissions (tonnes) Scope 1 Fuels (vehicles and non-transport) Scope 2 Electricity Scope 3 Business travel CARBON INTENSITY (REVENUE) Annual CO 2 emissions per revenue (tonnes/chf million) CARBON INTENSITY (PEOPLE) Annual CO 2 emissions per employee (tonnes/fte) BUILDING ENERGY INTENSITY IN SGS-OWNED OFFICES Annual kilowatt hours per square metre for SGS-owned offices BUILDING ENERGY INTENSITY IN SGS-OWNED LABORATORIES Annual kilowatt hours per square metre for SGS-owned laboratories ENERGY CONSUMPTION (PEOPLE) Total energy consumption per employee (MWhe/FTE) RENEWABLE ENERGY Total renewable energy certificates of origin purchased (tonnes of CO 2 ) WATER USE Annual water purchased (m 3 ) WATER INTENSITY (PEOPLE) Annual water purchased per employee (m 3 /FTE) HAZARDOUS WASTE GENERATED Total weight of hazardous waste generated (tonnes) , , , ,849 72, ,328 16,357 73, ,189 15,567 78, ,743 17,189 78, ,611 15, TARGET * 267* 277* 263* 241* 441* 417* 528* 434* / 397* / ,497 17,738 19, ,866 1,039,905 1,179,044 1,267, ,812 6,501 7,161 NON-HAZARDOUS WASTE GENERATED Total weight of non-hazardous waste generated (tonnes) * Restated following a review in methodology. Restated following the inclusion of recently acquired buildings. / Restated following the inclusion of recently acquired laboratories. Restated on a constant currency basis 16,829 24,856 27,313 Data covers our trend countries, representing three-quarters of revenue and two-thirds of headcount For more in-depth on our approach to Environment topics, performance and commitments for 2014, including Energy and Climate Change, Effluents and Waste, and Water Management, please see our online report