Environmental, Social and Governance Appendix  Independent review  Independent review of selected Subject Matter contained in Macquarie Group Limited’s 2014  Annual Report  1. Purpose  2. Scope and the selected Subject Matter  3. Basis of preparation 3.1 Organisational boundary  3.1.1 Corporate offices  3.2 Calculating and measuring greenhouse emissions  and energy use  3.2.1 Energy use and GHG emissions 3.2.1.1 Direct emissions associated with natural gas and  diesel (Scope 1 emissions)  3.1.2 Business air travel  The purpose of this document is define the selected Subject  Matter (the selected Subject Matter) contained within  Macquarie Group Limited’s (MGL) 2014 Annual Report that  have been included in the scope of PwC’s limited assurance  engagement. The selected Subject Matter that MGL requested be  included within the scope of PwC’s limited assurance  engagement comprised the following selected corporate  sustainability information for the 12 months ending 31 March  2014 (the reporting period):  Macquarie’s corporate offices are defined as:  Australian data for Scope 1 emissions associated with fuel  combustion, natural gas and refrigerants within the  organisational boundary was obtained from supplier invoices  and found to comprise less than one per cent of total  Australian emissions. On this basis, Scope 1 emissions for  Macquarie’s corporate offices internationally have been  excluded in calculating total greenhouse gas emissions for  the purposes of this report.  Business air travel is defined as travel ticketed through  Macquarie’s Travel Management Companies for the primary  purpose of business. Where business trips booked through  Macquarie’s Travel Management Companies include staff- funded spousal travel or personal leisure arrangements  made as an aside to a business trip, this has been included  in ‘business air travel’. The following exclusions have been applied in determining  the reporting boundary:  – offices or buildings that are owned or managed by an  MGL entity but are not tenanted by Macquarie staff  – serviced offices used by Macquarie staff where MGL  has no oversight of the energy usage of the office.  Energy costs for serviced offices are typically included  as part of a service fee  – joint venture offices (where the joint venture is the only  Macquarie related occupant of the office). Joint venture  offices are defined as offices where Macquarie staff may  be located as part of a joint venture business activity  but where Macquarie has limited ability to influence the  operation of these offices and does not have oversight  of the data required to calculate GHG emissions. a) total electricity consumed from MGL’s corporate offices  and data centres around the world b) total electricity indirect emissions (Scope 2) from MGL’s  corporate offices and data centres around the world c) scope 3 emissions associated with short, medium and  long-haul flights procured by MGL d) management’s assertion that carbon offsets have been  purchased and retired for the 2014 reporting period  representing a quantity of greenhouse emissions offset  greater than the sum of b) and c).  – offices leased by MGL operating entities globally which  are also occupied by MGL staff and have a Net Usable  Area (NUA) – the area that can be fitted out by the  tenant greater than 100m$^{2}$  – data centres around the world considered to be under  the ongoing ‘operational control’ of MGL. In this  instance ‘operational control’ is defined with reference  to the Australian National Greenhouse andEnergy  Reporting Act (2007)  – new offices from business acquisitions from the month  of acquisition.  221 