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Corporate Social Responsibility Report 2015

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As a company, we believe in being a good partner to our employees, partners, the communities in which we operate, and the environment. Great products and services are only part of what makes a successful company. BMC and its employees are also committed to community involvement, with a focus on social services and programs that encourage health and wellness.

BMC is a global leader in software solutions that help IT transform traditional businesses into digital enterprises for the ultimate competitive advantage. With approximately 6,000 employees worldwide—from our corporate headquarters in Houston, Texas, to offices in the United Kingdom, Singapore, Israel, Argentina, India, and beyond—our support of responsible corporate citizenship spans three main areas:

1. Volunteerism and community outreach

2. Environmental initiatives

3. Diversity and corporate ethics

BMC Software is proud to submit our Corporate Social Responsibility Report for 2015.

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India Lila Poonawalla Foundation is an Educational Trust in India whose vision is to contribute to the empowerment of Indian women by supporting academically outstanding and financially deserving female students, through scholarships to pursue higher education. BMC India partnered with the Foundation to sponsor the education of 10 undergraduate female students for a four-year engineering course. The goal of our sponsorship is to optimize the young women’s chances of employment.

BMC India’s association with the NFBM Jagriti School for Blind Girls began in 2009. Since then, the BMC team has employed the students of the school to evaluate software for user friendliness for the visually impaired. Candidates were given an opportunity to be trained in

Ukraine The BMC Kyiv Lab supports a number of volunteer projects, including helping refugees from Eastern Ukraine. BMC employees say the reason for this support is simple: adaptation to a new place can be difficult and traumatic, and people who fled the military conflict most probably know few people in their new city and have limited resources to support themselves and care for their families. BMC provided funds and employee volunteer support on the construction of a modern open-air playground for refugee children. “I often talk with the refugees and I see what they have to go through, so I’m sure we have to help them. Especially when it comes to children,” said BMC’s Ukraine country representative, Maria Karandina.

IT-related skills and soft skills to enhance their confidence. During this period, the trainees were given a stipend to support their college education. Several from the program have been hired in full-time jobs at BMC and are doing very well. For more than six years, the company has been associated with Sangise School, Ushtai Lokhande Trust, by donating school equipment, supporting education of the children, and sponsoring and distributing school kits. This past year, BMC India assisted in the building of a much needed Vocational Training Center. BMC employees worked side by side with the students on activities designed to teach the students about effective communication and the art of public speaking.

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AustinIn the capital city of Texas, the company has sponsored the Family Eldercare Fan Drive for many years. This drive helps keep thousands of seniors, adults with disabilities, and families with children cool during the hot Texas summers. BMC holds an internal fan drive and serves as a sponsor for the kickoff concert. With our donations, we were able to help in distributing 5,239 fans to 2,990 homes.

FloridaThe Tampa office has worked with Southeastern Guide Dogs (SEGD) for several years. Their mission is to create and nurture partnership between visually impaired people and guide dogs, facilitating life’s journey with mobility, independence, and dignity. The BMC office created the “Pup Cup Challenge,” where employees are invited to nominate and bid on a name for a puppy that the office would sponsor. Each year since beginning the partnership, the company has raised enough money to sponsor multiple puppies. When the BMC-sponsored puppies visit the office, allowing employees to interact with them, we have seen an increase in participation in the program.

Lexington

In 2014, BMC’s Lexington office entered into a new partnership with City Year, an organization that works to provide students in high-poverty communities with the school resources they need to graduate and succeed. In 2014, BMC employees volunteered during the Thanksgiving holiday to make pies and arts and crafts and personal items bags and then distributing them throughout the communities where the schools are located. The initiative was so popular with the employees that the company is expanding its partnership this year to take on additional initiatives in support of City Year.

Multiple Cities Support Cancer Initiatives

Many BMC locations around the world contribute to a variety of local initiatives in support of cancer research and programs to help cancer survivors. Some activities include employees in California participating in a bike ride for cancer research programs at Stanford University; employees in three Canadian locations participating in the widely popular Terry Fox Run for Cancer; and Houston employees continuing their annual participation in the Susan G. Komen Race for the Cure®.

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Stewardship

BMC Software recognizes its corporate responsibility to protect and preserve the environment and promote sustainability in the workplace.

While BMC, by the nature of its business, has a relatively small impact on the environment, it recognizes that improvements can always be made. By making such improvements, BMC not only reduces its environmental impact, but also helps to improve its customers’ environmental impact as well such as reducing power used for the storage of data. In order to create a policy that both demonstrates improvements and strives to reduce future impact, BMC has deployed an Environmental Management System (EMS). In doing so, BMC is taking proactive steps to incorporate and improve environmentally friendly processes throughout the business.

In realizing the need for a collaborative cross-departmental policy, BMC uses the Core Environment Principles of the UN Global Compact as the foundation for its global environmental policy.

The Core Environment Principles are:

• Supporting a precautionary approach to environmental challenges

• Undertaking initiatives to promote greater environmental responsibility

• Encouraging the development and diffusion of environmental technologies

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A key concept of the U.N.’s Core Environment Principles is to encourage businesses to take a precautionary – or proactive – approach when developing a strategy to confront environmental challenges. To achieve this principle, BMC utilizes an Environmental Steering Committee that spans all parts of our company and all geographies. Some of the key initiatives already implemented and identified by the Steering Committee include: support go-live and transition into production.

Supporting a precautionary approach to environmental challenges

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Our offerings: Data Center Power Usage Efficiency: This project started in 2013 and has since resulted in an annual total reduction of 7,340,880 kilowatt–hours (838 KW static load reduction). At 1.3 pounds of CO2 per kWh, this equates to an annual reduction in CO2 emitted by power generation plants feeding BMC’s data centers of 9,543,144 pounds. Recycling Program for IT Equipment: This program is managed by a third party commissioned to dispose of IT equipment in a safe and environmentally ethical manner through refurbishing and resale. This program is critical due to the large amount of computer equipment retired from BMC’s data centers since 2013, equivalent to more than twenty-five 52-foot-long tractor-trailer loads full of old computer gear. Reduction in Printing: BMC’s offices and data centers have drastically reduced their paper use and consumption. This is particularly apparent at corporate headquarters in Houston, where the amount of paper used in printing has been reduced from 2,200,267 pieces in the first quarter of 2014 to 343,162 pieces for the same quarter in 2015.

Global Real Estate Initiatives: BMC has transformed most of its offices around the world to provide a consistent employee workplace experience, encourage collaboration, and increase productivity while reducing our carbon footprint, lowering costs, and providing flexible workspaces. Additionally, BMC targets properties that are highly rated for sustainability and “green” design—using best-in-class building strategies and practices—for example, LEED in the Americas (Leadership in Energy & Environmental Design) and BREEAM in Europe (Building Research Establishment Environmental Assessment Methodology). Recycling of Trash: Recycling programs are in place at every BMC office location. Recycling containers are present or dry trash may be sent offsite for separation. Approximately 50 percent of waste is recycled and 50 percent of printer cartridges are shipped back to the manufacturer for disposal or recycling.

“We constantly challenge ourselves to come up with ways to protect and conserve our shared resources. It is our right and responsibility to do so. This is the principle that drives our environmental efforts.” Steve Goddard VP-Business Operations

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BMC will continue to improve its environmental footprint and enhance its status as a business, including ISO 14001 Accreditation and globally centralizing on Enterprise Voice/Audio/Video.

This initiative will reduce many of the negative environmental impacts associated with business travel as well as eliminating the use of landline phones, which will result in a decrease in energy consumption and emissions from the retired and recycled hardware.

Business should undertake initiatives to promote greater environmental responsibility

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In order to comply with this Core Environment Principle, BMC has included an Environmental Responsibility statement within our Employee Code of Conduct.

This statement reads as follows: BMC is committed to respecting the environment and to conserving resources. Accordingly, BMC not only ensures compliance with all applicable environmental laws and regulations in the countries where we do business, but also proactively initiates and supports significant environmental conservation programs above and beyond that which is required.

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This blog provides articles on wide-ranging topics for anyone with an interest in Green IT. The blog began as a way to demonstrate BMC’s thinking around “green” topics; it recognizes that while BMC’s business has a relatively low impact on the environment, there are still ways in which BMC can contribute to a greener planet.

BMC is also engaged in the discussion with the broader IT community through its Green IT blog: https://communities.bmc.com/blogs/green-it

* Corporate Social Responsibility

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In accordance with the final Core Environment Principle to encourage development and diffusion of environmentally friendly technologies, the Steering Committee looked at ways in which BMC has used its own technologies to improve energy efficiencies.

As noted in the “Data Center Power Usage efficiency” section above, BMC has achieved significant reductions in the amount of power that our data centers consume due to an overall project to modernize and consolidate our data centers. In order to achieve this aggressive reduction goal (as well as to enable future goals), BMC uses many of its own products to monitor, manage, track, and enable the company to deliver on its energy reduction targets.

In addition, BMC encourages electronic distribution of software and documentation to customers and partners, eliminating the need for media production, binding, and printing, as well as the negative environmental impact of shipping.

Business should encourage the development and diffusion of environmentally friendly technologies

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Silicon Valley employees get eco-friendly ride to work

Several years ago, BMC’s Silicon Valley, California, employees asked for a more efficient and environmentally friendly way to get to work. The company funds and supports employee participation in the San Jose Valley Transportation Agency’s EcoPass system. EcoPass gives an employee unlimited rides on any bus or light rail in the VTA system. BMC’s employee participation in the program has resulted in a decrease of carbon emissions by more than 500,000 pounds each year.

The program is a big success with hundreds of silicon valley area employees participating.

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Corporate EthicsBMC makes it a priority to have a diverse and ethical work environment. We work hard to recognize the value that our employees bring to the company and to help them reach their full potential. We also ensure that we build working relationships with minority-, women- and veteran-owned companies through our Supplier Diversity Program. We have a strong corporate ethics program through which we hold every employee responsible for maintaining the highest standard for ethical business conduct. We expect and require each employee to act in a responsible manner that preserves our reputation for honesty and integrity.

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Respectful workplace Diversity and inclusion at BMC is a global effort aimed at ensuring the success of employees by promoting a respectful and inclusive work environment. This effort, which encourages employees to engage and innovate, starts with and is championed by Bob Beauchamp, BMC Chairman of the Board, President, and Chief Executive Officer.

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“Hiring and retaining the best people in the world and placing them in positions to succeed are core principles of BMC’s corporate DNA.”

The case for inclusion in business is powerful.

“As a global company, we have a very diverse set of customers representing a wide range of industries from all corners of the world. We are strengthened by our employees reflecting this diversity.” Bob Beauchamp Chairman of the Board and CEO

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BMC has built a culture that emphasizes inclusion through a respectful work environment.

“Working together, we are creating a climate in which collaboration occurs across cultures, groups, and geographies. Then and only then can each of us reach our full potential. This culture is expected in our highly connected world, and we feel it’s a key element to a high performance organization where people are engaged and having fun.”

Monika Fahlbusch SVP-Chief People & Administration Officer

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Compliance and corporate ethics at the forefront of business success.

Conducting business in a way that respects the law and preserves our reputation for honesty, integrity, and the highest professional ethics is critical to our success as a company. The BMC Professional Conduct Policy and Code of Ethics defines standards, references policies, and provides resources that help all employees understand BMC’s business values and their responsibilities. The BMC Third-Party Professional Conduct Policy and Code of Ethics sets out similar high expectations for our third-party partners.

To support widespread internal knowledge and respect for ethics and policies, BMC requires all employees to reaffirm their commitment to abide by the BMC Code of Conduct annually. In addition, BMC provides online educational modules on various key legal and regulatory issues, as well as business risks, on a quarterly basis. This enhances employees’ abilities to conduct business in accordance with the BMC Code of Conduct and related policies.

The message is clear. At BMC, compliance and ethics start at the top. “It is mandatory to comply with the BMC Code of Conduct, and employees appreciate working for a company that values integrity and ethical business practices,” Beauchamp said.

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Under the guidance of Beauchamp and the BMC Board of Directors, Patrick Tagtow, SVP-General Counsel, Corporate Secretary and Chief Compliance Officer, oversees the Compliance and Ethics Office. This office operates as an independent team that drives compliance with the BMC Code of Conduct, policies, and applicable laws. In partnership with other organizations, the Compliance and Ethics Office conducts confidential investigations of possible violations. It also helps establish ethical business standards, provides to questions and concerns regarding the BMC Code of Conduct and ethical business practices.

“One of BMC’s core values is our focus on conducting business with integrity and in compliance with all local laws. This not only creates an environment that helps attract and retain ethical, talented employees, but also adds significant value to our shareholders, customers, employees, and the communities in which BMC operates.”

Patrick Tagtow SVP-General Counsel, Corporate Secretary & Chief Compliance Officer

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BMC, BMC Software, the BMC logo, and the BMC Software logo, and all other BMC Software product and service names are owned by BMC Software, Inc. and are registered or pending registration in the US Patent and Trademark Office or in the trademark offices of other countries. All other trademarks belong to their respective companies. © Copyright 2015 BMC Software, Inc.

_Bring IT to Life

BMC is a global leader in software solutions that help IT transform traditional businesses into

digital enterprises for the ultimate competitive advantage.

Our Digital Enterprise Management set of IT solutions is designed to make digital business fast, seamless, and optimized. From mainframe to mobile to cloud and beyond,

we pair high-speed digital innovation with robust IT industrialization—allowing our customers to provide intuitive user experiences with optimized performance, cost,

compliance, and productivity. BMC solutions serve more than 15,000 customers worldwide including 82 percent of the Fortune 500®.

Corporate Responsibility Contact:Dan D’Armond

Community and Government Relations DirectorTel: 713-918-2372

e-mail: dan_darmond@bmc.com