## Environmental, Social and Governance Report continued 

## Safeguarding privacy 

Macquarie respects and protects the privacy of the personal information of individuals with whom it deals. Macquarie uses security procedures and technology to protect the information held. Access to and use of personal information within Macquarie seeks to prevent misuse or unlawful disclosure of the information. Macquarie’s Privacy Policy is available on the Macquarie website. 

## Responsible marketing 

Macquarie is committed to ensuring that its products are marketed appropriately and that clients are treated fairly. There are Group-wide policies that require that disclosure and marketing materials meet legal and regulatory expectations, are appropriate for the target audience and accurately and fairly describe the product in question. Macquarie has also implemented policies and procedures to ensure that consumer complaints are handled in an appropriate and time-efficient manner and that agreements do not contain provisions which may be considered abusive or unfair. 

## Political donations 

Macquarie ensures that any requests for financial assistance are assessed with the aim of ensuring that multi-party systems deliver both good government and good opposition. In Australia, Macquarie achieves this objective by providing financial assistance to the major political parties at the state and federal level. Macquarie publicly declares all its political expenditure in Australia to the Australian Electoral Commission (AEC). In the year to 30 June 2013, Macquarie provided a total of $A335,263 to political parties in Australia (Liberal Party $A187,850, Australian Labor Party $A130,913, National Party $A16,500). No donations were made by the Group outside Australia in FY2014. 

## Advancing environmental management 

Macquarie approaches environmental management by focusing on three areas: identifying and managing climate- related risks and opportunities, managing resources used in our direct operations, and managing environmental issues in investments (detailed in the ESG Risk Management section of this report). 

## Climate change 

Macquarie recognises that climate change presents significant challenges to society and generates both risks and opportunities for its business and stakeholders. Consistent with Macquarie's strong risk management focus, climate change and future carbon constraints are considered within the existing risk framework. Macquarie’s approach is based on: 

– identifying, assessing and managing the risks arising from climate change and future carbon constraints 

– identifying and leveraging opportunities for investment and trading for Macquarie and its clients 

– assessing and managing its own carbon footprint. 

Under this framework: 

– businesses are responsible for considering greenhouse and energy management during due diligence for new businesses and products and addressing local legislative requirements consistent with Macquarie's 

Greenhouse and Energy Reporting Policy 

– Macquarie provides clients and staff with research and information about the economic, policy and business impacts of climate change 

– Macquarie also uses its expertise in global carbon markets to assist clients to prepare for compliance with emissions trading and provides emissions risk management products. 

Macquarie does not consider its businesses to have any material exposure to climate change regulatory risk. Macquarie continues to monitor developments in climate change regulation around the world. As a signatory to the Carbon Disclosure Project (CDP), Macquarie reports detailed information about its approach to the risks and opportunities arising from climate change. Macquarie’s annual responses are available on the CDP website. 

## Direct operations 

Macquarie’s direct environmental impacts predominantly relate to the operation of Macquarie’s offices and data centres and the resources consumed by these activities. Macquarie strives to integrate resource efficiency and sustainability into the day-to-day operations of Macquarie’s offices and corporate operations through the implementation of Macquarie’s Environmental Management Plan (EMP). 

Reducing emissions from energy use – In the year to 31 March 2014, Macquarie’s total Scope 2 and Scope 3 emissions reduced by 18 per cent from FY2013. FY2014 is the third consecutive year of absolute emission reductions. Scope 1 emissions are not reported as they are not material, comprising less than 1 per cent of total emissions in Australia. 

Macquarie’s Scope 2 emissions decreased by 11 per cent from FY2013. This reduction is the result of consolidation of Macquarie’s offices, updates to emission factors and a continued focus on energy use in Macquarie premises globally. This included, a specific program of data centre rationalisation and emphasis on occupying sustainable buildings. 

Macquarie’s Scope 3 emissions decreased by 23 per cent compared to FY2013, largely due to updates in international emission factors. Actual air miles travelled increased by 9 per cent in this period. Macquarie continues to encourage the use of video conferencing and has seen an increase in usage of over 35 per cent in Macquarie’s five largest locations since 2013. 

Maintaining carbon neutrality  – Since 2010, Macquarie has maintained its Carbon Commitment (2 $^{)}$ by reducing and offsetting emissions from its office energy use and business air travel. The Carbon Commitment builds on Macquarie’s response to risks and opportunities arising from climate change, its investments and activities in renewable energy, clean technology and environmental markets, and status as a signatory to the CDP. 

