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Sustainability report EY France’s economic, social and environmental contribution

March 2017

ey.com/fr/rse

What will be your legacy?

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We are pleased to present to you, for the fourth consecutive year, the Sustainability Report for EY France. Publication of this document is an important point in the life of the company as this exercise enables us to set down and reveal all the actions and thinking we have done over the course of the 2016 fiscal year in order to bring to life our mission statement: Building a better working world.

Just like our corporate responsibility, it is embodied, first and foremost, in the way in which we carry out our assignments. There are not two separate strategies: one business strategy focused on the search for sustainable growth and another strategy aimed at making our contribution to social, economic and environmental aspects in France. We at EY are convinced that these elements must be interpreted together.

This report is structured around the 5 challenges that marked the 2016 fiscal year, for you to become informed about the key issues across our organisation and our answers to them. These capture in a word what we invite you to peruse in greater depth over the course of these pages: transformation.

Technological disruptions make transformation imperative for all businesses. For EY, for example, it's about placing importance on innovation, opening the EY EXPERIENCE LAB – a unique place dedicated to innovation and the co-creation and production of Analytics, Cyber and Digital services – and about shaking up management practices by giving a voice to employees through upward feedback.

There are many initiatives you can find out about in this report, with their aim being, ultimately, to provide all the required keys for the men and women at EY, who constitute our living and breathing assets, to grow and develop together!

We hope you enjoy reading this report.

EditorialJean-Pierre Letartre, Chairman of EY France

Message from Mark Weinberger, Global Chairman and CEO of EY

1 | SUSTAINABILITY REPORT EY FRANCE’S ECONOMIC, SOCIAL AND ENVIRONMENTAL CONTRIBUTION | ALL RIGHTS RESERVED

Key figures and datesEY is a member of the

United Nations Global CompactThe United Nations Global Compact 2015 progress report details how EY applies the Global Compact principles.

5,515

direct jobs (EY France people) + =

1,500 indirect jobs

(from EY France purchases)

Consumption

1,700 induced jobs in

France

8,715 jobs supported over the

2016 fiscal year in France

231,000 people

$29.6bn revenue

EY worldwide

28 regions

152 countries, 737 offices

€954mn revenue

+12%5,515 people

+12%16 offices

22% of people in the regions

EY France

48%52%

OCTOBER 2015

Integration of Bluestone Consulting for EY to become a standard setter in data science.

NOVEMBER 2015

Acquisition of the Institut RSE Management consultancy to reinforce EY's sustainable development expertise.

EY France acquisitions

Clients

Major international groups (French and foreign)

Not-for-Profit and Public Sector Market for EntrepreneursOver 200,000

clients worldwide

in 2016

2 | SUSTAINABILITY REPORT EY FRANCE'S ECONOMIC, SOCIAL AND ENVIRONMENTAL CONTRIBUTION | ALL RIGHTS RESERVED

61%3%

36%

Breakdown of value created in France (as share of revenue)

Jean Bouquot

Taxes and duties

Payroll costs

Suppliers

Jean BouquotPartners Career

Management

EY France is ranked in the top 2% of businesses by Ecovadis (taking all categories together).


Editorial ................................................................................ 1EY in 2016 – Key figures and dates ...................................... 2

Presenting EY FranceEY Service Lines.................................................................................................... 4Governance ........................................................................................................... 5Four trends taken into consideration by EY in order to transform ............................. 6Dialogue with our stakeholders .............................................................................. 8Materiality analysis - Our key challenges ................................................................ 9

What are the 5 challenges for EY?Challenge 1: Preserving confidence in a changing environment ...............................10

Ethics and independence ..................................................................................... 11Data confidentiality ............................................................................................ 12Service quality and client satisfaction ................................................................... 13

Challenge 2: Innovating in the digital age ................................................................ 14Examples of 2016 transformation projects ........................................................... 15

Challenge 3: Being an attractive employer and retaining talent ............................... 16Focus: EY’s engagement survey ........................................................................... 17Attractiveness of the employer brand ................................................................... 18Skills development.............................................................................................. 19Talent retention .................................................................................................. 20Health, safety and wellbeing at work .................................................................... 21Diversity and Inclusion ........................................................................................ 22

Challenge 4: Creating value beyond our core business ............................................. 24Challenge 5: Minimising our environmental impact .................................................. 27Methodology ......................................................................................................... 30

Contents

BACK TO CONTENTS 4 | SUSTAINABILITY REPORT EY FRANCE’S ECONOMIC, SOCIAL AND ENVIRONMENTAL CONTRIBUTION | ALL RIGHTS RESERVED

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. Coordination of our four service lines represents a key challenge.

In order to promote cross-functionality, an Executive Committee ensures all activities are coordinated, facilitating the adoption of a market-based approach that transcends the simple approach based on individual service lines.

2,200 people

€542mn revenue• Helping our clients meet requirements

concerning the transparency and reliability of financial and extra-financial information.

• Validating the quality and honesty of detailed information for third party use.

• Guiding and supporting our clients in their accountancy-related issues (standards, processes and operations).

• Assessing anti-fraud and anti-corruption systems, investigating allegations and analysing the data.

385 people

€92mn revenue

Helping businesses to:• Drive the capital agenda to develop new

competitive advantages.• Adapt to increased competition and

more complex and tenser procedures as regards external growth.

• Continue efforts regarding cash optimisation and increased operational efficiency.

1,320 people

€164mn revenueHelping organisations to:• Deal with disruptions that will

have an impact on their model (CSR, demographic issues, new technology etc.).

• Continue with efforts made to improve operational performance and manage risk.

• Guide and support the transformation of public sector stakeholders to optimise their efficiency.

950 people

Support functions consist of the following departments in particular: Knowledge, Markets & Business Development, Marketing & Communications, Risk & Quality, Human Resources, Purchasing, Finance, Real Estate, Information Technology, Legal and Administrative Support. They contribute to the smooth running and development of our business activity (support in submitting bids and carrying out assignments), extending the EY brand influence and sharing knowledge. Out of these 950 people, around a hundred work for EY at world or European level.

660 people

€156mn revenue

• Generating value in a sustainable and responsible way through the design and implementation of innovative and reliable solutions concerning the law and taxation.

• Defending our clients' interests in an increasingly complex world of tax and the law.

• Identifying solutions to enable our clients to achieve their operating targets whilst minimising their risks.

EY Service Lines12%

24%

7%17%

40%

Breakdown of employees by service line [G4-LA12]

Assurance

Advisory

Tax& Law

Transactions

Support functions

17%

16%10%

57%

Breakdown of turnover by service line

Assurance

Advisory

Tax& Law

Transactions

Support functions

Assurance1 Transaction Advisory ServicesAdvisory1 Tax & Law

1 Excl. Transactions.


GovernanceEY France as part of a global networkWithin the EY global organisation, France belongs to the region called France Maghreb Luxembourg (FraMaLux). From 1st July 2017, FraMaLux will merge with Belgium and the Netherlands to form the WEM region (Western Europe & Maghreb). The purpose of this merger is to increase synergy and investment capacity whilst offering more career opportunities both for our partners and people. This will help achieve our 2020 Vision.

Organisation of the Executive Committee Coordination of all EY France business activities is done through an executive committee currently chaired by Jean-Pierre Letartre (opposite).

Partner selection processAs of 30th June 2016, EY France brings together 330 partners who own a stake in the consultancy and are able to take responsibility. New partners are appointed every year through a rigorous co-opting process taking into account numerous criteria, including candidates' business case for partnership, their ability to bring in revenue on a recurring basis and their management skills. Particular attention is paid to diversity.

In FY16, 14 partners were co-opted from within our teams and there were 15 direct entry partners.

Strategy CommitteeBesides the official administrative bodies specific to each legal entity, EY has established a strategy committee comprised of 6 individuals from public, intellectual and economic spheres. The consultants use their expertise and independence to provide the Chairman of EY France and its Executive Committee with their analyses and external view of the political, economic and social changes in France and around the world.

The following individuals were members of the strategy committee in the 2016 fiscal year: Roland Cayrol, Political Scientist; Erik Orsenna, writer and Member of the Académie Française; Pierre Guénant, Chairman of PGA Holding; Gilles Babinet, Chairman of Captain Dash; Elizabeth Ducottet, CEO of Thuasne and Jean-Luc Petihuguenin, Chairman of Paprec.

Jean-Pierre LetartreRegional Managing Partner

Breakdown of value created in France (as share of revenue)

Jean Bouquot

FraMalux Executive Committee Organisation

Laurent VitseAccounts leader

Sylvie MagnenTalent leader

Jean BouquotPartners Career

Management

Claire NourryRisk Management leader

Laurent Miannay Operations leader

Alain KinschLuxembourg Country

Managing Partner

Pierre JouanneEntrepreneurs Market

Segment leader

Alain PerrouxAssurance leader

Guillaume CornuTransaction Advisory Services leader

Éric MouchousAdvisory leader

Éric FourelTax & Law leader


Four trends taken into consideration by EY in order to transform

1 63% of French businesses think it is hard to find people with the qualifications and skills they need in the jobs market (Institut CSA survey).

Anticipate disruptions: digital growth favours disruption in sectors that can affect our own business model as much as that of our clients.

• At EY, digitalisation and "Big Data" demand the deployment of tools to identify and closely analyse a large body of data. We are investigating the use that may be made of blockchain technology in our business, so as to provide increased added value for our clients.

• Our clients' degree of maturity in regard to digital issues is variable. It is therefore essential that we support them in anticipating potential digital disruptions to their business models.

Ensure data security: the digitalisation of the economy makes it necessary to anticipate cyber attacks, both within EY as well as for our clients, in order to prevent the leaking of strategic information and personal data (clients and our people).

Have the appropriate skills: digitalisation means we must remain attractive in order to recruit the key skills we will need going forward. Similarly, it is essential to give our people continual training to respond to the new opportunities presented by digital1.

Supporting regulatory changes

2 Regulatory intelligence is imperative in order to provide our clients with guidance on new topics such as new technologies and environmental law. Regulatory changes also impact our business activity:

• Fair taxation: with regard to taxation, the rapid change in regulations means we must constantly review our practices in order to offer our clients legally sound solutions.

• "Sapin II" Anti-Corruption Law: in order to give our clients the closest possible guidance at all stages of the regulatory system to prevent and detect corruption risks, EY has developed a combined service including specialists in organisation, compliance and the law to meet its clients' needs. The general complementary nature of our service lines is EY's strength when it comes to supporting our clients in taking account of changes in regulations.

Taking account of digitalisation of

the economy and development of

"Big Data"

1


The services we offer demand strong commitment and have a seasonal aspect. Our people and partners work in a demanding and intellectually stimulating environment. The wellbeing and retention of our people in this environment is achieved through several types of action:

• Offering our people flexibility regarding how their work is organised so as to adapt the way they manage their work-life balance, in agreement with local management. This can only be implemented using finesse and attention to detail, so as not to harm either team efficiency or the business culture.

• Stimulating interest through diversity in terms of the types of clients, assignments and content we offer our people; also through the option we give them to get involved in skills sponsorship assignments, for example as part of the EY Foundation for manual trades. In order to meet their expectations, it seems to us to be necessary to give our people an ever-greater option to lead bespoke careers, to suit the different stages in their life and their own wishes.

• Fostering a climate of trust and confidence, through frequent and relevant appraisals, not just of our people by their managers but also of the partners by our people. Fostering trust and confidence also means offering everyone the chance to contribute their own ideas to aid the business' transformation.

Growing whilst retaining our

culture

4Amongst the BIG 4, EY France is the most strongly integrated and grew by 12% in FY16. We must therefore succeed in retaining the soul of the business and in ensuring the feedback of ideas with the same efficiency through mechanisms that favour innovation.

If we want to remain attractive and competitive, we must also strengthen the diversity of what we offer and the quality of assignments, through cross-functional management of accounts and daily contact with our clients.

Promoting the wellbeing and

retention of our people

3

Four trends taken into consideration by EY in order to transform


It is of vital importance that EY constantly listens to its stakeholders in France — clients, employees, suppliers, public authorities, regulators, students, associations etc. — in order to understand their expectations, their perception of our business and the route they want to see us take. This interaction enables EY to identify the main risks and opportunities, adapt its approach and improve its performance.

It is by listening in this way that EY means to create, with its stakeholders, the conditions for responsible, sustainable and shared economic development.

To this effect, in 2017 we wish to maintain a dialogue with our main stakeholders in order to understand their expectations and how to meet their satisfaction, going beyond our assignments.

Dialogue with our stakeholdersOur stakeholders

Our mission Methods of dialogue

To maintain open, transparent relations with the regulators and participate in professional bodies.

Our partners and people can be asked to contribute to standard setting and to give thought to bills and laws.

International organisations and public authorities

To play a role in the region's vitality by contributing to public debate and education.

EY is involved in a number of networks and think tanks and makes "intellectual" contributions to public debate related to its skills and the sectors on which it is knowledgeable.

Involvement in society also includes many classes, run mainly for students in graduate schools and universities but also for those nearing the end of their secondary education.

Society

To nurture and develop leaders, continually increase our people's skills and promote an open and flexible working environment.

The assessment culture, which is very strong within EY, nurtures a dialogue with our people – especially since the introduction of an upward feedback process, enabling our people to assess their partners (see page 19).

Annual surveys help to assess our people's level of engagement. Lastly, when one of our people resigns, EY records their reasons for leaving in order to understand whether they are company-related.

People

ClientsTo help decision makers understand and act, build trust and confidence and contribute to sustainable growth.

For nearly 10 years, EY has been developing a formal Assessment of Service Quality (ASQ) which helps verify the quality with which assignments are managed and performed.

EY is ISO 9001 certified.


Materiality analysis consists of identifying the various issues related to our economic, social and economic, social and environmental responsibility and putting them into hierarchical order. The matrix below represents the level of "materiality" of issues based on their importance (i) in the eyes of our stakeholders (vertical axis) and (ii) their potential impact for EY (horizontal axis).

This analysis, derived from a working group in the EY global network, has been adapted to the French context to take into account expectations specific to our stakeholders and the local impact of our activities. We have developed our materiality matrix in order to further enhance the status of innovation which, through its direct impact on our sustainability and appeal, is a major issue.

EY will ensure its CSR strategy and extra-financial communications evolve over the coming years depending on the level of materiality of issues. In particular, we want to update the materiality matrix by questioning our external stakeholders over the coming years.

EY France is particularly concerned about the following Sustainable Development Goals (SDG) and is working to define commitments related to these SDGs.

This materiality analysis has enabled us to identify four key challenges for EY France:

• Preserving confidence in a changing environment (pages 10 to 13)• Innovating in the digital age (pages 14 to 15)• Being an attractive employer and retaining talent (pages 16 to 23)• Creating value beyond our core business (pages 24 to 26)

In addition to these material challenges, although EY is a service company, we believe that reducing our environmental footprint and that of our clients is a necessity in view of the conclusions reached by the Intergovernmental Panel on Climate Change (IPCC). Our fifth challenge is therefore as follows: • Reducing our environmental footprint and that of our clients (page 27)

Low Moderate High Potential impact for EY

Attracting &developing

talent

Client satisfaction

Contributing to public debate

Commitment to society

Data confidentiality

Innovation and sustainability of the EY model

Quality of lifeat work

Responsible procurement

Waste & end-of-lifeof IT equipment

Impo

rtan

ce fo

r st

akeh

olde

rs

Ethics and independenceContribution tolocal economy

Preserving confidence in a changing environmentInnovating in the digital ageBeing an attractive employer and retaining talentCreating value beyond our core businessReducing our environmental footprint and that of our clients

Transport-relatedenvironmental

impact

Supporting our clients in reducing their environmental footprint

Diversity

Materiality analysisOur key challenges

14 issues constituting 5 major challenges for EY

Our clients expect us to provide high quality audits, relevant advice and sound, technical sector expertise. In meeting these expectations, we contribute towards creating the conditions for having confidence in the economy, thus participating in sustainable growth. In order to do that, we undertake to provide businesses and organisations with a high level of service, appropriate to their expectations, enabling them to deal with the changes in their environment.

This challenge groups together three major issues for EY:

• Carrying out our assignments in compliance with the rules on ethics and independence• Preserving data confidentiality (clients and employees)• Ensuring client satisfaction

In accordance with the regulations, we publish a transparency report on our activities as statutory auditors within three months of the end of the fiscal year. This report details the actions taken by EY to reinforce the quality of its work, manage risk and preserve its independence as an auditor.

The better the question. The better the answer. The better the world works. : asking the right questions to contribute to sustainable growth

Our contribution to creating a world that moves forward is linked to the mission we set ourselves in 2013: Building a better working world.

This ambition - to offer a new perspective, enabling organisations to innovate and transform – starts with the ability to ask the best questions: relevant questions that make it possible to challenge, inspire and open the door to a new solution. This initiative is at the heart of our business and the service we deliver to clients: we help them to be more efficient, manage risk, stimulate their growth in a sustainable way and create confidence.

Preserving confidence in a changing environment

Rapport de transparence 2016

EY en FRANCE

Ce rapport est établi conformément aux exigences légales et réglementaires pour les commissaires aux comptes membres d’EY en France Exercice clos le 30 juin 2016

Ensuring the quality of our assignments whilst complying with the professional code of ethics

* An alert is issued if a client does not recommend us, or gives us a below average rating.

Compliance with professional code of ethics and rules on confidentiality

right through our assignments

Rollout of satisfaction

programme: 452 clients interviewed

Survey on the significance of alerts*Monitoring of client

recommendations 8.2/10

Adherence of our people and

partners to the code of conduct

Technical and cross-functional training

of our people: 10.5 days on average per person per year

Skills development "on the job" for

our people via training and supervision

Monitoring of substantiated complaints for breach of privacy or

loss of client data:0 complaints

Quality

Ethics andindependence

index:

Access our Transparency Report online


Challenge 1

BACK TO CONTENTS


IndependenceIndependence represents a fundamental issue for our business. By providing an independent guarantee of the reliability, relevance and honesty of financial information, EY helps create the conditions for confidence in the economy, a key factor in market stability and the sustainability of business development. Confidence is the result of diligent, regular work and a high quality relationship marked by transparency and truth.

Whilst maintaining EY's independence is essential to the quality of our audits, this is also a fundamental requirement for our other service lines, in order to ensure the objectivity of our advice and consultancy, in the interests of our clients and all our stakeholders.

Management of conflicts of interestEY assesses its clients before any potential assignment in order to ensure this assignment does not put the business in a conflict of interest situation. Rigorous procedures are aimed at determining whether we can accept a new client, continue with a relationship or provide a new service without endangering our independence, exposing us to conflicts of interest or any other breach of applicable rules and laws. If we consider the risks to be excessive, we do not hesitate to refuse the client or assignment, or to put in place the necessary solutions to prevent a conflict of interest ("Chinese Wall" for example). We reassess the situation: every year for audit clients and at least every five years for others, as well as each time a factor that is significant to our policies affects the risk profile.

Anti-CorruptionCorruption is a major global issue that EY takes very seriously. An entire system is deployed to prevent corruption. It is currently being revised to meet the requirements of the "Sapin II" Anti-Corruption Law. A 30-minute online self-training module enables our people to identify corruption, prevent it and combat it.

Ethics and independence

MANAGEMENT OF ETHICAL RISKS [G4-SO4] FY14 FY15 FY16Percentage of employees trained in procedures to combat fraud and corruption (Anti-Bribery module) [G4-SO4] 90% 83% 76%Scope: permanent workforce (permanent + fixed term contracts)EY France now wants to concentrate its training efforts on those of its people who are "at risk" owing to their occupation and is therefore not chasing up every employee who has not undergone the self-training.

Values and code of conduct

EY is based on professional values shared by its entire network and rooted in the following practices:

• Demonstrate integrity, mutual respect and team spirit• Share the leaders' energy, enthusiasm and courage• Know how to build fair and lasting relations

These values are part of a code of conduct signed by the CEO of EY which, in five chapters, provides each of us with the essential principles for guiding our actions and decisions:

• Work in a team spirit• Work with clients, regulators and third parties placing key

emphasis on quality, the professional code of ethics and EY's reputation

• Act with professional integrity• Maintain our objectivity and independence• Protect EY intellectual capital

When they join EY, all our people and partners make a commitment in writing to comply with this code and the rules arising from it.

These common values and the code of conduct, together with our global procedures and policies, set demanding targets regarding the quality of our services.

Our global code of conduct can be accessed via the following link.

1 Global code of conduct

signed by our CEO and all our partners and people


EY respects its clients' confidentiality and lays down, globally, the security rules and regulations, the roles, responsibilities and standards governing data information systems and applications.

EY has implemented strict global internal procedures to ensure the confidentiality of information concerning each client.

Aware of the importance of respecting the confidentiality of client information, all of the countries in the network apply the "EY Knowledge Sharing Policies" that determine the confidentiality rules to apply, regardless of the medium used.

Document protectionEY has a secure archive department. Archivists' employment contracts include confidentiality commitments. Files are kept in secure archive rooms accessible via personal ID badges, with linear metre barcoding to pinpoint location and ensure the traceability of each file through a unique barcode.

File searching by means of a dedicated secure IT system, accessible only to archivists, allows the location barcode to be cross-referenced with the file barcode.

IT data protectionWe also ensure IT security for information, through a series of measures covering every stage from storage to transfer. For example:

• On all EY France work stations (portable and fixed) the hard disks and USB drives are entirely encrypted by software, with password-protected access.

• EY France has an encryption system for PC hard disk and USB drives that prevents the leaking of confidential information. This additional protection is on top of the various EY layers of protection, notably regarding remote access to the EY network (by personal code that changes every minute).

Data confidentiality

DATA CONFIDENTIALITY [G4-PR8] FY14 FY15 FY16Total number of substantiated complaints for breach of privacy or loss of client data [G4-PR8]

0 0 0

0Substantiated

complaints for loss of client data


In order to ensure the quality of its assignments, EY has introduced a quality control system based on policies, tools and procedures detailed in our transparency report.

Each service line has a primary contact in charge of "Quality and Risk Management" as well as a dedicated committee that deals with the new rules to be incorporated and complied with, all of the authorisation procedures and any updates to them. Two types of internal checks help to ensure the quality of our assignments: firstly the checks and controls that are "embedded" within assignments and secondly the annual checks made on a sample of assignments.

EY has also deployed a programme for analysing client satisfaction:

• All members of the EY global network carry out work led by ASQ (Assessment of Service Quality). Through questionnaires or individual interviews, we question a selection of clients based on a risk analysis (renewal, rotation of the partner in charge) and the amount of assignments carried out for the account. The systematic use of two interviewers in interviews helps to increase the quality of discussions and produce a summary together with an action plan.

• Between FY14 and FY16, EY France almost doubled the number of individuals interviewed as part of its satisfaction programme. This enabled better control of the client relationship through more systematic feedback (and therefore better management) of alerts1. 32 of the 50 alerts relayed in FY16 related to our clients' subsidiaries outside France. EY is improving its client relationship through its commitment – which it has kept - to resolve alerts in under 48 hours.

• In addition, for some bids EY is now introducing ESQ (Expectations of Service Quality) which allow an assessment of expectations prior to an assignment so as to establish a framework for the client experience. EY's aim is to systematise ESQs for each significant new assignment.

1 An alert is issued if a client does not recommend us, or gives us a below average rating.

EY client portal

In order to help our clients take the right decisions at the right time in a constantly changing business world, we have developed a secure internet portal with a lot of content and tools that are constantly accessible: EY client portal

The EY client portal enables our clients to remain constantly informed about themes relating to the latest news in their line of business.

Access a detailed description of the EY client portal.

Service quality and client satisfaction

QUALITY AND CLIENT SATISFACTION (ASQ) [G4-PR5] FY14 FY15 FY16Our target clients' recommendation index (quality rating from 0 to 10) 8.31 8.24 8.19Questionnaire return rate in % 42% 36% 38%

Number of people interviewed as part of the satisfaction programme [G4-PR5]

0

100

200

300

400

500

FY16FY15FY14

185

321271

101

286106

427

181

452

531 50

Interview Questionnaire via email Number of alerts1

EY is ISO 9001

certified for all its service lines

EY is audited each year by the

H3C (Haut Conseil du

Commissariat aux Comptes - auditing oversight board)

on its auditing activities

EY is COFRAC

accredited for validating environmental

information such as CO2 emissions

EY has a 600 m² area that is

PASSI certified

Digital is transforming the entire global economic landscape, encouraging businesses and organisations to rethink their relationship with their employees, clients and suppliers. There must also be a new look at operational procedures and the business culture. Since it concerns our own jobs as much as the service offerings we develop for our clients, digital is a crucial element in our strategy.

A Chief Digital Officer was recruited in 2015. In consultation with our service lines, he carried out an analysis enabling us to anticipate future disruptions. This investigation was based on internal interviews and a benchmarking study of competitors and innovative start-ups.

20 plans were proposed, 16 of which were selected based on their impact and feasibility: 7 focused on our service offering, 3 on internal procedures and 6 on human resource management.

These plans fall into three categories: incremental (process improvement), adjacent (expanded offering or broadening of an existing procedure to meet the requirement) or disruptive.

Two of these plans are described on the following page, with the others remaining confidential at this stage.

Innovating in the digital age

In order to provide organisations with guidance on their digital transformation, on 7th December 2016 EY officially opened a unique and innovative place in Paris: EY EXPERIENCE LAB - an environment to innovate, collaborate and produce enhanced client services from Analytics, Cyber and Digital experts which incorporates skills from EY's four service lines.

The Lab allows the existing skills within EY to be brought together, pooling their potential and fostering innovation by giving each multidisciplinary project a useful anchor point involving one of the Lab's 3 key fields.

In practical terms, the Lab is an area covering over 600 m² based in EY's premises at La Défense. It has a highly secure, PASSI certified infrastructure with high added value technology.

Whilst the Lab brings together 60 R&D experts, with acknowledged strong skills in Analytics/Data Science, Cyber and Digital, its purpose is also to form ad hoc teams depending on the specific projects, incorporating the various EY service lines (assurance, advisory, tax & law and transactions).

The La Défense Lab teams are connected to the other Labs in the EY global network (New York, San Jose, London, Dubai, Bangalore etc.) and, when relevant, they call on the expertise and strategic alliances developed within the network.

An internal newsletter allows our people and partners to follow the Lab's developments and so encourage the sharing of information on innovation.

EY is an acknowledged global expert in Cybersecurity

EY was ranked 15th out of 500 businesses by Cybersecurity Ventures in its comparison of "Companies to Watch in 2017". This puts the company ahead of numerous renowned Cybersecurity specialists.

More information on this ranking available online.

See our online video presentation on the EY LAB


Challenge 2

BACK TO CONTENTS

60 experts dedicated to innovation and R&D,

trained in the digital world's best international practices

and tools

to decrypt our clients' digital ecosystem and

stimulate innovation to benefit their performance

to create with our clients, using collaborative

methods and technologies, the digital solutions

of tomorrow

team time place


Upward FeedbackUpward feedback is a quarterly campaign for our people to assess partners. It is in response to the wish expressed by our management and our people to understand, assess and change management behaviour.

Upward feedback enables people to assess the partners with whom they have worked to a significant extent, by means of 4 questions. Each question calls for a rating of 0 to 10 and has an optional field for open-ended comments.

An external independent service provider processes the data and calculates a "Net Promoter Score" ranging from -100 to +100 using the method shown below1.

MOOC2 Digital AcademyEY France is launching its MOOC2: the "EY Digital Academy". This online platform enables each individual to educate themselves on Digital matters, at their own pace and based on how much they know to start with and where their central interests lie.

Using an entertaining communications campaign, EY France is in this way encouraging its people and partners to gain digital skills, whatever their starting level.

In practical terms, the EY Digital Academy consists of 15 training modules on Digital matters with:

• 3 levels• About 15 minutes per level• Lessons are 100% online and available on tablets, smartphones and PCs• A system for learning via video• "Battles" to challenge colleagues and learn in an entertaining way

Examples of 2016 transformation projects

Each partner who has received at least one assessment gets detailed personal feedback, also sent to the service line manager and the Chairman of EY France.

Over the first campaign (July to September 2016), 85% of the 274 eligible partners received at least one feedback. 1,025 employees provided feedback. The average Net Promoter Score is 25.85. Given that the method of calculating the NPS does not take into account neutral feedback, our result for this first campaign is rather good. The score for people's professional development is lower than the others. We are therefore making it our goal to see an improvement in this score in particular in the next campaign.

2 MOOC are courses offered solely online, free of charge and accessible to all.

1 The Net Promoter Score, developed by Fred Reichheld, was initially used to describe the impression that customers give of a company to their friends, families and colleagues. EY France uses it to evaluate its managerial performance by means of four questions.

DETRACTORS PASSIVES PROMOTERS

Net Promoter Score % Promoters % Detractors

0 1 2 3 4 5 6 7 8 9 10

=

16transformation plans

being deployed

BECO

ME DIGITAL

HEROES

Our services' added value depends above all on our people's skills, therefore our competitiveness and brand image are closely linked to our responsibility as an employer. The issues facing us in terms of human resources, detailed on the following pages, are as follows:

• Attractiveness• Skills development• Talent retention• Health, safety and wellbeing at work• Diversity

Our survey on our people's and partners' level of engagement is an essential human resources guidance tool and as such is also shown in this report.

Our HR issues call for the implementation of innovative solutions, fostered by the creation of an internal think tank called the Talent Transformation Committee (TTC). This is representative of the diversity of our talents, experiences, career paths and skills. It is chaired by Jean-Pierre Letartre, the Chairman of EY France, and brings together seniors and managers from each service line, Talent leaders, partners who are sponsors in training and recruitment and lastly, representatives from the Talent teams. Its main objectives are as follows:

• To analyse our performance regarding talent management and compare it with that of our competitors

• To determine the means for making concrete changes in terms of talent management• To position EY as the best brand for developing talent• To be one of the highest rated companies in the Global People Survey 2017• To evaluate and select innovations proposed by the HR Innovation Lab

The HR Hive of Innovation

In order to encourage innovation in how we manage our human resources, around a hundred of our people who were co-opted by members of the Talent Transformation Committee (TTC) met in working groups to answer about fifteen open-ended questions on HR development at EY. These questions included:

• How should EY be transformed to make it the preferred company for women?• How should EY be transformed so that everyone can achieve a work-life balance?• How will we work better at EY in the future?• How can we release our full potential at EY?

The innovative ideas that were put forward will enable the TTC to determine plans to be launched in the coming months.

Breakdown of employees by contract type [G4-10]

0

1000

2000

3000

4000

5000

6000

FY16FY15FY14

4,467 4,705 5,285

4,641 4,9225,515

640 799 932

Fixed term contract

Permanent contract

No. of internsover the year

Permanent workforce (permanent + fixed term contracts)

174 217230

Breakdown of employees by age sector [G4-LA12]

Average age: 33.3Average length of service:

6 years

0 % 10 % 20 % 30 % 40 % 50 %

Under 30

Between 30 and 50

Over 50

50%

42%

8%


Being an attractive employer and retaining talent

Challenge 3

BACK TO CONTENTS


Focus: EY’s engagement survey

The overall results of the People Survey and also subsequent themed focus groups conducted to delve further into the findings, make it a mine of information on the

collective feedback from our different populations on strategic themes. We devote a lot of time and energy to implementing and processing this data so as to systematise

interactions and listen attentively and fully to the opinions of all our people.

Lines of action from the 2016 survey

The engagement surveys lead to action plans, the effectiveness and relevance of which are assessed in subsequent surveys.

• Our commitment to work together for a fairer and more balanced working world is the subject of regular explanations and communications.

• Human Resources offer comprehensive support for our departments to end up with action plans that are in line with their results.

• Diversity and inclusion continue to be major issues for EY and activities/programmes are regularly carried out to enable our people to appreciate the value of their differences and encourage sincerity in relationships.

Engagement index1

Each year, EY conducts an anonymous survey amongst its people and partners to probe its employees' level of engagement, their degree of satisfaction with quality, local management and wellbeing at work and also their understanding of the business strategy. This global survey is offered to all our employees, with two different versions for alternate years: a detailed version called the People Survey (about 60 questions in odd-numbered years) and a summary version, called People Pulse (about 20 questions in even-numbered years).

The participation rate was 75% in 2016, which is the highest recorded rate for a People Survey in France. The results can therefore be regarded as significant and representative of our people's concerns and expectations.

The high level of participation in this survey reinforces its status as an essential component in our system for listening and deploying tools to steer our Human Resources policy as close as possible to our people's expectations. The engagement index is 66%, up by 3 points compared with 2015.

2016 Strong points

2016 Progress points

The engagement index1 is

66% in France, up by 3 points compared with 2015

77% of our people are proud to work at EY

7ptsdifference in engagement rating for Men versus Women, as in 2015

28% of employees feel two-way communication is not sincere and open within the hierarchy

+13pts for the question "I understand how my work contributes to the 2020 Vision 2 "

42% of employees are motivated by the "Building a Better Working World" mission statement

Sylvie Magnen, Talent Leader EY France

“

”

66%up by 3 points

compared with 2015

1 Engagement index: at EY we measure it by assessing 4 elements: pride, recommendation, satisfaction and attachment to the company.2 2020 Vision represents EY's Global aim and includes a quantitative objective (Global revenue of 50 billion in 2020) as well as qualitative objectives (for example: being the brand that sets the benchmark in our business fields, or being the most attractive company in our business fields).


Attractiveness of the employer brandIn fiscal year 2016, the proportion of new recruits who were young graduates stood at 49%. EY recruits not just young graduates but also those with experience, either directly or through acquisitions. The decline in the proportion of recruits accounted for by young graduates in FY16 compared with previous years is due to acquisitions made during that period. It is essential that EY remains attractive in order to continue to develop through recruiting the talents that are necessary for our various service lines. Our recruitment objectives are therefore to:

• Continue recruiting students from the top business and engineering schools and targeted law and finance universities.

• Diversify our recruitment to suit developments in our service lines and organisations. Our recruitment profile therefore now includes people with a 2-year higher education BTS vocational diploma or accountancy qualification from an IUT technical college ("Gemini Profile") working on client assignments to support auditors. We also recruit assistants on a qualifying study programme (known as AFD in France), who receive training within EY for the exams for the Diploma in Accounting and Management (DCG) and then the Advanced Diploma in Accounting and Management (DSCG).

• Open up the potential resource pool to "new profile types", suited to the changes in the market and the needs of the advisory and assurance service lines. We have also particularly targeted the cybersecurity, data analytics and digital business sectors via direct recruitment and the acquisition of a data analytics consultancy, Bluestone Consulting (75 employees). Our aim is to develop this business within EY and position ourselves as a major player in this market of the future.

Increasing our attractiveness includes notably strategic partnerships with our target graduate schools and student associations such as, for example, the CNJE (National Confederation of Junior Enterprises), the EDHEC business school's Course Croisière sports competition and the Top Eight rugby tournament for France's leading business schools. It also includes the involvement of many of our people in training students, either in their areas of specialisation, or in cross-functional skills. Our managers and partners make a strong contribution in this way to the quality of our relations with the schools through their heavy involvement with young graduates.

These actions down on the ground are aimed at enabling students to find out about EY, the jobs in its lines of business, the opportunities it presents and the professionalism of its people as well as giving a closer view of the EY experience.

Our candidates appreciate the chance of interaction with operational personnel.

People recruited on permanent contracts (CDI)1 [G4-LA1]

0

500

1000

1500

2000

FY16FY15FY14

334 537 680442

776 678

1,215

831

1,511

No. of men recruited on permanent contracts

No. of women recruited on permanent contracts

People recruited on permanent contracts

SOURCE OF RECRUITS (IN %)2 FY14 FY15 FY16Target business schools3 52% 49% 44% Target engineering schools3 13% 15% 13%Other types of training 35% 36% 43%TOTAL 100% 100% 100%Young graduates as a proportion of total recruits in the year4 70% 55% 49%Proportion of employees recruited during the year [G4-LA1] 17% 26% 29%Recruitment rate for former EY interns 28% 25% 23%

1 The Universum survey is aimed at naming the most attractive companies, based on a survey of students.2 People who signed their contracts in fiscal year 16 (FY16).3 The set of schools for which EY carries out specific activities for recruitment purposes and to establish good student relations.4 The indicator does not take into account recruitment of young graduates who have previously done an internship with EY France.

EY ensures that women are well represented in the number of recruits and has set itself equal recruitment targets for men and women starting at EY.

#3in the Universum1 world

ranking in the Business

category


Skills developmentAs quality is in EY’s DNA, we have to continually increase our teams' performance. After each training course, our people are asked about their level of satisfaction so as to ensure that training meets our people's needs. In 2017, deployment of a new tool should facilitate systematic monitoring and analysis of our people's satisfaction ratings.

"On-the-job" training Thanks to extensive supervision and management of them over the course of their assignments, during their first two to three years of working on client assignments our people acquire the fundamental techniques needed for their job. After gaining three years of experience they are introduced to supervision and management. They are then gradually trained in commercial development so as to be fully self-sufficient after five to six years of experience. It is also possible for our people to gain rich technical experience of sectors: an international working environment and a variety of assignments and client issues.

Our people working in so-called "internal" functions are also trained through extensive supervision and management and through the opportunities offered to them.

Training offeredEY also offers its employees a whole raft of technical and cross-functional training courses. A training plan is drawn up for each individual based on their job, their role in the organisation and their development.

Technical trainingEach service line has its own technical training programmes. Individual external technical training is offered to our people on specific themes in the event of a particular job-related requirement.

Cross-functional training There is a variety of cross-functional training on linguistic skills, office automation, and behavioural and management skills. Our people receive specific training when there is a change in their level of responsibility (on first arriving, moving to another grade, having to act as a sponsor for young people or carry out recruitment etc.). "Management efficiency" training followed by "management clubs" therefore enables managers to share their experiences and queries and to support their people so they become the managers of tomorrow.

In order to strengthen our teams' collective performance, we use a module called "Highest Performing Team" following the Lencioni Pyramid model2.

Lastly, specific training is given to those of our people who demonstrate "high potential", in order to encourage their promotion and retention within the company.

1 Manager: partner, executive director, senior manager, manager, deputy director, associate director, director, administrative officer.

2 Patrick Lencioni analysed the five main types of dysfunction within a team. He gives the following keys to dealing with these: mutual trust, an open debate of ideas, involvement in the implementation of action plans, interdependence and focusing on a common objective.

3 People working on client assignments.

FY14 FY15 FY16Managers1 34% 33% 32%Non-managers 66% 67% 68%

Scope: permanent workforce + interns, calendar year

SKILLS DEVELOPMENTTRAINING [G4-LA9]Average no. of days per person per year

2014 2015 2016

Client-serving3 11.6 11.9 12.3Support functions 2.3 2.2 2.3Total 9.8 10.2 10.5

0

2

4

6

8

10

12Average number of days' training

per person per year [G4-LA9]

9.8 10.2 10.5

2014 2015 2016


Talent retentionCareer development for people working on client assignments leads them to gain skills and responsibilities rapidly, through the management and promotion system outlined on the skills development page.

Companies where young people are given responsibility so quickly are very rare. Armed with this experience and the impressive entry on their CV provided by this EY endorsement, a large number of our people are then recruited by clients or economic stakeholders. Our high level of natural turnover means it is essential that our employer brand is attractive to the target schools.

EY has established "Counseling Families", communities of 20 to 40 employees of all grades, based on sponsor/sponsoree relationships, that meet regularly for informal discussion and interaction. Thanks to their limited size, these Counseling Families facilitate communication, discussion and career development within entities. There are various programmes to encourage people retention too.

Our objective is to make the years spent at EY an experience that lasts a lifetime – as is the case with the career of Mark Weinberger, who left EY several times before taking up the post of Global CEO of EY.

Talent retention also involves the option given to our people to invest effort in things outside their actual job (cf. Challenge 4). Therefore the payroll giving scheme, Arrondi Solidaire, that was set up in 2016 enables our people to donate centimes from their monthly pay to an association of their choice. EY then doubles the amount of micro-donations made.

In order to retain client-serving personnel, we make sure we offer them a variety of assignments and a high degree of autonomy in carrying out their assignments. Therefore we try to meet requests concerning mobility as best as possible, whether between different departments, between "client-serving" functions and internal functions, or between domestic and international.

3 examples of programmes to encourage loyalty amongst our people

The Challenge Programme targets the youngest of our graduates especially and aims to increase the variety of practical experience offered them during their first two years of working at EY. Every year, their development placement alternates with 6 months in Assurance and 6 months in another service line, i.e. Advisory, TAS or Tax & Law. At the end, our people choose the service line to which they want to devote themselves.

10 Degrees is a new assessment approach for our people. The programme is focused on their career development and the skills they have acquired. This approach is fuelled by qualitative feedback that takes place on a continual basis throughout the year as assignments are carried out. 10 Degrees moves aways from the idea of quantitative assessments of past performances.

Launched in 2015, the Jumpstart programme encourages young people at EY to create their own enterprise in parallel with their activity, thanks to their working time arrangement and a training programme for answering key questions such as "how do you raise funds?" and "how do you increase the value of your business?". There are 20 of our people currently participating in this programme.

INTERNATIONAL MOBILITY FY14 FY15 FY16Number of people working as expatriates 119 147 163Anyone with a French contract working abroad, declared an expatriate as of 30th June N with the international mobility department, known as "Outbounds" (excluding foreign assignment).

TURNOVER OF OUR PEOPLE [G4-LA1] FY14 FY15 FY16Leaving rate2 in % 20% 21% 22%Leaving rate2 for client-serving personnel 24%Leaving rate2 for people in support functions 11%Leaving rate2 for women 21%Leaving rate2 for men 23%Leaving rate2 for people under 30 26%Leaving rate2 for people aged 30-50 19%Leaving rate2 for people over 50 8%2 Leaving rate: Total number of people leaving from the category concerned/average monthly total number of employees in the category concerned.

If you can keep [your employees], great. If you can’t, then hopefully they’re a great representative of you, an ambassador of you out in their new jobs.

Mark Weinberger, CEO of EY

“”

6 yearsPeople's average length of service

i.e. 32% of former staff1

6,536 Alumni on the network

1 people who have left EY since 2000.


Health, safety and wellbeing at workOccupations at EY are, by their nature, not very likely to cause accidents or injuries. On the other hand, they can generate stress. For our "front office" people, this stress is linked in particular to the seasonal nature of our activities, leading to an increased workload during certain periods that it is not possible for us to even out entirely.

EY acts in close collaboration with the occupational health department regarding general health and safety precautions. The potential risks identified depending on the business activity and the population concerned are assessed as part of the comprehensive workplace risk prevention assessment1.

EY is pursuing its commitment to live and work together better. Our wish for tomorrow is therefore to continue to rethink our ways of working, notably through the annual engagement surveys.

"Flexible working5"In 2014, 57% of our people wanted greater flexibility in order to achieve their personal and professional objectives. There is now a "flexible working" approach that encourages employee autonomy in managing when and where they work. It is not a remote working agreement but a very flexible system allowing occasional working away from the office. It is based on trust, first and foremost, and allows our people flexibility so they can better reconcile work and personal life. A survey conducted at the end of 2016 shows that 62% of EY France’s people use flexible working at least once or twice a month. Flexible working promotes team efficiency and helps reduce the risk of burn out.

Themed workshopsEY gives its people guidance on matters regarding wellbeing at work and sustainable performance. EY therefore offers practical workshops, in a short format, that enable EY people to leave no stone unturned when it comes to keeping up their energy level and aiding their physical, technical and emotional capacities. The themes dealt with are as follows:

• Nutrition: how to combine sensible eating with a sustained work rate? • Sleep: how to ensure time spent asleep leaves you feeling refreshed so as to be effective by

day? What's the best way to manage jet lag? • Smoking: how to give up smoking using a proven system: the Allen Carr method? • Stress management: how to manage the high demands and expectations of your job? What

are the tools to control stress and turn it into energy? • These workshops are open to all EY people and are run by external service providers who

are experts in their field.

Space organisationIn advisory activities, the way in which a business structures, designs and organises space contributes to its performance, whether through workplace ergonomics or employee satisfaction when they benefit from motivating working conditions. Work has begun in our offices for greater collaboration and interactivity. Therefore the layout on some floors has been arranged to make the space totally collaborative.

COLLECTIVE AGREEMENT [G4-LA11] FY14 FY15 FY16Proportion of employees covered by a collective agreement 100% 100% 100%

ABSENTEEISM FY14 FY15 FY16Average number of days' absence per person 4.09 3.91 3.88

RISKS AND ACCIDENTS2 2013 2014 2015Number of work-related accidents resulting in lost time 14 18 15Frequency rate3 2.6 2.89 2.19Severity rate4 0.13 0.11 0.04

1 The comprehensive workplace risk prevention assessment (DUER - Document Unique d’Évaluation des Risques professionnels), which is mandatory for all businesses with more than one employee, allows, firstly, an analysis of the risks associated with the job that is done and, secondly, an understanding of the results of policies implemented to reduce these risks.

2 This data relates solely to the following companies: Ernst & Young & Associés, Ernst & Young Société d’Avocats, EY Services France, Ernst & Young Advisory and Ernst & Young Actuaires-Conseils.

3 (number of lost-time work-related accidents/number of hours worked) x 1,000,000.4 (number of days lost/number of hours worked) x 1,000.5 Flexible working at EY means making use of technological resources to lend flexibility to the constraints regarding time

and place of work. It therefore does not mean doing any more or less work. Flexible working is open to all EY employees.

- 0.21days' absence per person

in FY16 vs FY14


Diversity and InclusionBecause profile diversity is as important for its clients as it is for its teams, EY France makes diversity and inclusion central to its human resources policy and initiatives.

Since signing the Diversity Charter in 2008, EY has therefore been leveraging all means of favouring inclusion so that everyone, regardless of any individualities, enjoys a fulfilling professional career in which they progress.

• The HR teams and operating personnel in charge of recruitment are trained in diversity issues through a specific training course.

• In addition to providing information about the EY network organisation and about the whole raft of business activities practised, the Welcome To EY induction days raise new recruits' awareness of EY's policy and requirements regarding inclusion.

• All new managers are trained regarding decision-making biases for an inclusive approach to management. This training promotes awareness of the existence of stereotypes vis-à-vis certain population groups (women, people with disabilities, elderly employees and younger employees etc.). Simple tools are used to free ourselves of those stereotypes.

EY also takes targeted action regarding several themes judged to be a priority. The issues regarding parenthood and equality are essential for EY in order for us to be able to retain and promote our people regardless of their personal lifestyle choices. The link to the EY France internet page on Diversity and Inclusion is available here.

Gender equalityAt the end of fiscal year 2016, 19% of partners were women. EY has made a commitment to increase the representation of women at every level in the hierarchy to reach a target of 25% of women at partner grade in 2020.

This is a major challenge, as was highlighted in an EY study in 2016 in the USA, according to which only 55% of women from "generation Y" aspire to be in a leadership position, compared with 71% of men from the same generation1.

In addition to heightening awareness, EY France is working to actively promote the recruitment and retention of women and the equality between male and female employees.

EY France has equipped itself with dedicated tools for the comparative monitoring of appraisals, promotions and salaries for male and female employees to ensure there is equal treatment.

ParenthoodIn 2008, EY was one of the first companies to sign the Parenthood Charter. The parenthood measures that EY has put in place include the allocation of places in a day nursery and an emergency or occasional childminder system. All young parents also have the opportunity to talk individually to a paediatrician, an expert in parenthood.

EY France facilitates departures and returns to work for young mothers. Female employees therefore have interviews before and on their return from maternity leave so as to anticipate as best as possible the conditions regarding their return to work. On their return, they benefit from a week of working part-time on full-time pay.

1 http://www.ey.com/Publication/vwLUAssets/ey-next-gen-workforce-secret-weapon-or-biggest-challenge/$FILE/ey-pdf-next- gen-workforce-secret-weapon-or-biggest-challenge.pdf.2 (Total no. of females still employed on 30th June N after returning from maternity leave in FY N-1/Total no. of female employees who rejoined the organisation after maternity leave during fiscal year N-1) x 100.3 (Total no. of employees still employed on 30th June N after returning from parental leave in FY N-1/Total no. of employees who rejoined the organisation after parental leave during fiscal year N-1) x 100.

BREAKDOWN OF EMPLOYEES BY GENDER [G4-LA12] FY14 FY15 FY16Women 2,283 2,402 2,649Men 2,358 2,520 2,866Female partners 54 58 62as % of partners 18% 19% 19%Male partners 238 251 268as % of partners 82% 81% 81%

PARENTHOOD [G4-LA3] FY14 FY15 FY16Retention rate for women in the year following maternity leave2 71% 86% 92%Rate for staying in post after parental leave3 79% 88% 88%

88%Rate for staying in post after parental

leave2

48%

13%4%

35%

Breakdown of employees by gender [G4-LA12]

Women working on client

assignments

Men working on client

assignments

Women in "support functions"

Men in "support functions"

FY16 Data


Diversity and InclusionDisabilitySince setting up the HR Disability division (Mission Handicap) in 2009, EY France has been conducting an active policy promoting the employability of workers with disabilities. EY France's Disability policy hinges around 5 key areas of action: recruitment of people with disabilities, integration and career development of employees with disabilities, training for key project stakeholders (recruiters, buyers, HR etc.), raising our people's awareness and developing subcontracting with parties in the sheltered sector.

In 2012, EY signed its first three-year agreements to increase the employment of people with disabilities and these agreements were renewed in 2015.

Since the mission's official launch, the employment rate for disabled employees has increased by a factor of 3.8. At the same time, EY has increased its purchasing from the sheltered sector, mainly in the form of seconding workers with disabilities to the company (indirect jobs).

EY France is also closely involved in the educational sphere in promoting the inclusion of students with disabilities.

• Since 2013, EY has been a partner of Sciences Po (Paris Institute of Political Studies) and NEOMA business school, working on various actions to support students with disabilities (recruitment coaching, raising students' awareness, mentoring etc.).

• EY also rewards the schools' best community projects through the Special Disability Prize in the EY award scheme for the best community projects - Prix EY du Meilleur Projet Associatif (PEYMPA).

Lastly, EY is an official partner of associations and organisations striving to help people with disabilities enter the world of work (ARPEJEH, Club Etre and Clubhouse).

Social mixDiversity and inclusion are matters also requiring its teams’ engagement, so EY France involves its people, male and female, in work regarding the Internats de la Réussite scheme ("Boarding Schools for Success"). This project, encouraged by the French Ministry of Education, helps to offer favourable conditions for a successful education for deserving lower secondary and upper secondary school students from disadvantaged backgrounds. Since our first involvement 7 years ago, 238 of our people have tutored pupils wanting support.

"Stand As One", a campaign to raise awareness about Diversity

EY has supported Eric Bellion since 2015, as he competed in the round-the-world yacht event, the Vendée Globe 2016, as skipper of "COMMEUNSEULHOMME" ("STAND AS ONE"), racing under the flag of Diversity and Inclusion.

Eric Bellion, EY and 13 other corporate sponsors thus took up the challenge of changing people's ways of thinking and raising their employees' awareness of the diversity of situations and of every individual's potentiality.

Whilst the Vendée Globe is a solo race, Eric was very keen to stress that it was through the involvement of an entire team made up of varied individuals (people with disabilities or from disadvantaged backgrounds, mixed teams of men and women, multicultural, from different nationalities etc.) and sponsors committed to Diversity that he was able to take part in the competition and defend for them the STAND AS ONE values.

"This event is a magnificent opportunity to raise our people's awareness of diversity working towards a greater collective achievement: the desire to dare together so as to surpass ourselves and achieve excellence, whilst being open to human diversity, is the principal source of innovation, personal wellbeing and collective enrichment", explains Jean-Pierre Letartre, Chairman of EY France.

DISABILITY [G4-LA12] 2014 2015 2016Disabled workers' employment rate* 1.31 1.17 1.29*According to the DOETH definition (French mandatory disability report on employment of disabled workers)

RESPONSIBLE PROCUREMENT 2014 2015 2016Volume of purchases made with the sheltered sector (€K)* 280 290 341

See the "Stand As One" presentation on the

project's dedicated website

Over 500managers trained in

decision-making biases

Creating value beyond our core business

The "Building a better working world" mission statement that EY has chosen to associate with its name, guides its everyday relations with its clients and its people.

This mission statement also represents a responsibility towards society as a whole. A company only performs well in the long term if it listens to the needs of its geographic base and if its creation of economic value goes hand in hand with creation of social value.

EY is convinced that value creation for the whole of society can only be sustainable if it resonates with EY's values and is linked to its interests or vision. Indeed, any other form of patronage or sponsorship would be doomed to die at the first difficulties encountered by the company.

At EY, value creation beyond our service lines includes participating in collective thinking, coaching and training for students, skills-based sponsorship and financial patronage.

OUR PEOPLE'S INVOLVEMENT FY14 FY15 FY16Employees involved in Foundation and sponsorship projects 229 251 287of which: Foundation2 75 137 150

of which: other skills-based sponsorship 154 114 137Hours spent on Foundation and sponsorship projects 8,900 12,292 16,268 of which: Foundation2 5,000 5,992 7,100of which: Internats de la Réussite3 510 of which: other skills-based sponsorship 3,900 6,300 8,6582 calendar year (up to 31st December)3 estimated no. of hours based on 15 hours per employee acting as sponsor, with each sponsor's involvement varying depending on the needs of the student receiving support

EY FOUNDATION FOR MANUAL TRADES (cumulative total since its creation)

2014 2015 2016

Projects selected by the Foundation 76 88 1083

4 20 projects accepted in 2016: 12 for "classic" long term support, and 8 for a " boost", a new format giving short-term support

FINANCIAL PATRONAGE EXCL. EY FOUNDATION (IN €K)

0

500

1000

1500

2000

2500

FY16FY15FY14

1,400

1,4001,500

500

1,900700

2,100900

2,400

Cash donations Skills sponsorship1 Total financial commitment

Challenge 4

24 | SUSTAINABILITY REPORT EY FRANCE’S ECONOMIC, SOCIAL AND ENVIRONMENTAL CONTRIBUTION | ALL RIGHTS RESERVED BACK TO CONTENTS

1 skills-based sponsorship is valued according to the applicable accounting rules

Pro Bono Marathons

EY has been supporting micro-enterprises and associations since 2013 through a partnership with the Pro Bono Lab.

85% of our people who made a contribution to Marathons in 2016 think they are an embodiment of the EY mission statement, "Building a better working world".

96% learnt about the not-for-profit business world and 89% think the assignment contributed to their personal fulfillment.

These projects generate great enthusiasm amongst our people who believe that: "it's fascinating, being able to interact and learn as we've all followed different paths and all have something to add to the equation. ".


Creating value beyond our core businessParticipation in think tanksEY contributes to collective thinking through its presence in over a hundred organisations, think tanks and professional networks in Paris and regionally. Our partners and people get involved in these networks and think tanks so as to contribute their expertise and skills and participate in the debate of ideas.

EY is a stakeholder particularly in associations and think tanks such as IMS-Entreprendre dans la Cité, Institut de l’Entreprise, Entreprise & Progrès and Confrontations Europe, in a process based on openness and shared thinking with civil society: policy makers and trade union and institutional representatives, etc.

Publication of researchIn addition to the research that we carry out as part of our assignments for a number of our clients, we also contribute to collective thinking through the publication of our own exclusive research on topical themes.

The challenges affecting company management boards in terms of their organisation and skills raise questions to which EY France suggests answers, thanks to the launch of a digital platform:

Questions of transformation. Taking strategic issues as its central focus, it aims to give directors food-for-thought when faced with the following threefold question:

• What will my sector and environment be like tomorrow?

• What will the impacts be on my company's various activities?

• Which perspectives should be taken into account in the transformation process for my organisation?

Participation in collective thinking enables EY to get involved in the public debate whilst offering a unique foundation of thought that allows us to give organisations and governments suggestions on issues such as levers for growth and the working world.

Prizes and awards givenEY highlights innovation and excellence within the French economy notably through the Entrepreneur of the Year Award (see link). For the last 25 years, it has been rewarding men and women on exceptional career paths, selected from seven French regions to compete at regional, national and even global level.

Award for best CSR thesis

Since 2009, EY Société d’Avocats has been contributing to the organisation of the prize for the best CSR thesis1. The purpose of this award is to "reward students' research work based on the originality of their approach and innovativeness of the results of their theses".

These issues contribute to the sustainable development of the economy in keeping with our vision of "Building a Better Working World." The award also helps to challenge EY Société d’Avocats in its perception of the key issues facing the profession.

Example of research

• Every year for over ten years now, EY has published the France Attractiveness Survey (Baromètre de l’Attractivité), assessing the reality of the situation regarding foreign investments in French territory and an analysis of how it is perceived by foreign investors and decision makers.

• As a regular observer of foreign investors through its Attractiveness Surveys, EY has published a special Brexit edition, analysing the consequences for foreign investment in Europe from the United Kingdom's forthcoming exit from the Single Market.

This study, entitled Plan B … for Brexit is available here.• In 2016, EY and Les Entreprises Pour la Cité published the

results of a second overview ("Panorama") of foundations and endowment funds set up by businesses in France. This comprehensive overview analyses the dynamics at work and the changes in the sector as regards evaluation, communication and strategic direction, taking a particular interest this time in defining the theme of public interest.

61research studies

published in France in 2016

1 Prize for Research Masters, course 122 in "Advanced Corporate Law" at Paris Dauphine University.

EY’s European attractiveness survey January 2017

Plan B … for BrexitA boardroom view on investment and location strategies in Europe


EY Foundation for manual tradesEY employees have the possibility of getting involved in sponsorship through the use of their skills, thanks to the EY Foundation for innovative manual trades. The Foundation's objectives are to create employment,

encourage people to view manual occupations differently and open up a bridge between these occupations and so-called "intellectual" occupations.

As is emphasised by those of our people involved in this venture, the project leaders get as much out of the sharing of skills as do those involved alongside them, through the richness of the interaction and discussion.

An introductory video is available online.

Creating value beyond our core businessFinancial sponsorship and skills-based sponsorship EY's mission statement, Building a Better Working World, confirms its wish to take an active part in public life and makes the commitment to society one of the pillars of its philosophy. EY is a signatory of the Charte du Mécénat charter on sponsorship and patronage and has received recognition for its actions to promote culture (recipient of an award for being a major patron of the arts - Grand Mécène de la Culture in 2011), lending its support to large French cultural institutions through sponsorship and long-term partnerships in the aim of offering everyone the chance to discover cultural heritage and interact with those who make it so rich.

Our people are convinced that relevant, effective sponsorship and patronage requires a high degree of involvement, so for years now they have been sharing their technical know-how with prestigious cultural institutions.

EY is supporting Paris National Opera for the 15th consecutive year as its main patron. As such, we contribute towards enabling them to achieve their artistic goals and preserve an extraordinary heritage whilst helping them reach as many people as possible.

EY has also been supporting the public institution of the Louvre since 2005 through financial patronage and skills sponsorship, on legal, tax and advisory assignments. Since 2008, EY has also been a patron of the centre for the study and performance of French Baroque music, the Centre de Musique Baroque de Versailles, providing it with financial support and its legal and tax expertise.

This commitment enables our people to get involved and increase their expertise by sharing their technical know-how with prestigious cultural institutions.

Coaching pupils and studentsMany EY employees work as volunteers to give young students coaching, either on a one-off basis or as part of courses run by institutions. This is the way in which EY Société d’Avocats gives students guidance on constructing their business plan and helping them enter the world of work through classes on preparing a CV and a supporting letter.

EY Société d’Avocats also supports law students who have not passed the bar exam by highlighting the variety of legal occupations available besides just being a barrister. The conference on "How to bounce back without the bar school entrance exam" was held for the third year at our Tour First head office in Paris. It restores hope to students attending, notably thanks to practical examples of successful careers without the bar exam.

EY is also a founding Partner of "Moovjee" (Young Student Entrepreneurs Movement) which encourages young entrepreneurs through the "Prix Moovjee – Let's Innovate Together" award.

These coaching activities are very time-consuming for our people who often put in a great deal of effort outside their working hours. Besides the feeling of being useful that our people gain from these activities, they help make EY attractive and enable us to get the profiles of the best students in their areas of specialisation.

Paris National Opera is an extraordinary organisation, bringing together around a hundred different trades. At EY, we also feel very strongly about getting our 4 service lines

and our sector experts to work together with one another for the benefit of our clients' performance. Therefore these values of sharing and interaction around the idea of "pulling

together" are what we also cherish and wish to convey with our people.

Jean-Pierre Letartre, Chairman of EY France

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287employees involved in Foundation and

sponsorship projects

Foundation for Manual Occupations

Although its environmental impact is naturally low, owing to the mainly intellectual emphasis of its services, EY constantly challenges its methods of working so as to reduce its carbon footprint and limit waste.

With regard to the global measurement of its network's carbon footprint around the world, EY France is constantly on the search for instruments and good practices to make the assessment of its environmental impact increasingly reliable.

In France, the establishment of the Paris teams at Tour First, an office block that is leading the way in terms of environmental standards (skyscraper classed as High Environmental Quality), is a major element of this programme that is also geared towards limiting travel and reducing paper consumption. EY France has continued its efforts to reduce energy consumption at its premises.

Our main impact in terms of CO2 emissions is linked to the travelling done by our people. An investigation is being done into this to encourage more frequent use of trains for short trips.

EY has also launched an approach for recycling certain types of waste, mainly linked to the largest share of our people's activities:

• Recycling of PCs;• Recycling of telephone headsets;• Destruction and recycling of "paper" documents.

EY France wants to go further in reducing its impact and is thinking about an appropriate target in this regard in 2017. This work must be accompanied by greater accuracy and reliability of our carbon footprint measurement, through work with our service providers.

EY France no longer uses natural gas or diesel for its office buildings but now records emissions related to its vehicle fleet under Scope 1.

CARBON FOOTPRINT (IN TONNES OF CO2) [G4-EN15-16-17-18]

FY16

Scope 1 (emissions related to direct energy consumption) 971Scope 2 (emissions related to indirect energy consumption) 381Scope 3 (emissions related to business travel by our people) 15,709TOTAL greenhouse gas emissions 17,061TOTAL per employee 3.09

ENERGY CONSUMPTION (MWH) [G4-EN3] FY16Electricity consumption 5,960Natural gas consumption 0

PAPER MANAGEMENT [G4-EN1] FY16Paper consumption* (kg/employee/year) 19Volume of recycled paper (tonnes) 191* calendar year (up to 31st December)


Minimising our environmental impact

Challenge 5

BACK TO CONTENTS


This publication is the 4th Sustainability Report from EY France.

Reporting periodAnalysis relates to fiscal year 2016, i.e. 1st July 2015 to 30th June 2016 (called "FY16", standing for "Fiscal Year" 2016) in the table of indicators given in the document. Certain performance indicators, however, were drawn up based on the 2016 calendar year.

Scope of reportingThis report covers all of EY France's offices and activities. For human resources-related data, Monaco is also included.

The term EY France mainly includes the following entities: Ernst & Young Audit, Ernst & Young & Autres, Ernst & Young Atlantique, Ernst & Young & Associés, Conseil Audit & Synthèse, Ernst & Young Société d’Avocats, Ernst & Young Advisory and RLCF (Ricol Lasteyrie Corporate Finance). In this next section of this report, we will refer to French entities as EY France, "the company" or "we".

Application of the GRI 4 Reference SystemThis report was prepared according to the Global Reporting Initiative (GRI 4) guidelines in compliance with the "essential criteria" option.

Materiality analysis and scope of aspectsBased on the EY Global materiality analysis, adapted for EY France, we identified the "material" aspects according to the Global Reporting Initiative 4 guidelines' designation.

All aspects selected are relevant to EY France. Some are also material for some of our external stakeholders, as shown in the table below:

EY FRANCE SCOPE

EXTERNAL SCOPE

CLIENTS COMMUNITIES PUBLIC AUTHORITIESEconomic performance

Employment

Training and education

Diversity and equal opportunities

Anti-Corruption

Public policies

Client privacy

Labelling of products and services (client satisfaction)

Material Immaterial

Methodology


Reporting organisationReporting of indicators is centralised annually for the purposes of this report. It is based on internal data collection:

• Human resources-related data is obtained from the Human Resources Department;

• Data related to society is obtained from the Department for External Relations and Sponsorship, Management Audit and the EY Foundation for manual trades;

• Data on energy consumption is obtained from Corporate Services;

• Data on business travel comes from our travel agency, Expenses Department and Purchasing Department;

• Data on paper consumption comes from the Purchasing, Photocopying and IT departments.

For reporting greenhouse gas emissions, the conversion factors were standardised at EY Global level based on those proposed annually by the World Resources Institute1.

The various sources of emissions are recorded as follows:

• Scope 1: consumption of natural gas to heat buildings.• Scope 2: consumption of electricity for buildings.• Scope 3: business travel (car hire, travel by train and

plane – excl. taxi).

Calculating the economic footprintIndirect and induced jobs are calculated in the following way:

• Indirect jobs are valued based on operating expenditure and labour intensity ratios. The latter are taken from Eurostat input-output statistical tables for France, describing the interdependency of the various economic sectors (industry and services) in terms of production. These tables provide labour intensity ratios (expressed as FTE per production unit in €mn) for the various branches of the national economy. Moreover, each expenditure entry is allocated to the corresponding economic sector. Indirect jobs are the result of cross-referencing these two sets of information.

• Induced jobs, generated by the expenditure made by our employees and suppliers, are also deduced from multiplier coefficients taken from Eurostat input-output tables, describing the impact in terms of employment of one euro of household expenditure in each sector of the economy.

Methodology

1 http://www.wri.org/

This document exists in an ISO 14289-1 certified version that complies with Web Content Accessibility Guidelines - WCAG 2.0. Its ergonomics mean people with motor impairments can navigate their way through this PDF using keyboard commands. It is accessible to people with visual impairment as it has been tagged in such a way as to be re-transcribed orally by screen readers, in its entirety and via any electronic medium. Lastly, it has been tested exhaustively and validated by a visually impaired expert.

Access it at: ey.com/fr/rse

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About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one of more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit www.ey.com.

© 2017 EY Services France.All rights reserved.Studio EY France - 1701SG019SCORE FRANCE No. 2017-026Photo credit: ED none

Document printed in accordance with EY's commitment to reduce its environmental footprint.

This publication is for general information only and is not intended to replace professional advice on accounting, tax or other matters. You should consult your advisors on any specific matters.

ey.com/fr/rse

CSR ManagerElisabeth [email protected]

Acknowledgments

EY would like to thank all those who contributed towards the production of this report.

Marketing and Communications DirectorEmmanuelle Raveau

Coordination and compilationSophie Meynier, Elisabeth Dewavrin

GraphicsFrancis Régina

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