Macquarie Group Limited and its subsidiaries  2014 Annual Financial Report  macquarie.com.au  Environmental, Social and Governance Report  continued  Safeguarding privacy  Responsible marketing  Political donations Direct operations  Advancing environmental management  Climate change  Macquarie respects and protects the privacy of the personal  information of individuals with whom it deals. Macquarie uses  security procedures and technology to protect the  information held. Access to and use of personal information  within Macquarie seeks to prevent misuse or unlawful  disclosure of the information. Macquarie’s Privacy Policy is  available on the Macquarie website.  Macquarie ensures that any requests for financial assistance  are assessed with the aim of ensuring that multi-party  systems deliver both good government and good opposition.  In Australia, Macquarie achieves this objective by providing  financial assistance to the major political parties at the state  and federal level. Macquarie publicly declares all its political  expenditure in Australia to the Australian Electoral  Commission (AEC). In the year to 30 June 2013, Macquarie  provided a total of $A335,263 to political parties in Australia  (Liberal Party $A187,850, Australian Labor Party $A130,913,  National Party $A16,500). No donations were made by the  Group outside Australia in FY2014. Macquarie is committed to ensuring that its products are  marketed appropriately and that clients are treated fairly.  There are Group-wide policies that require that disclosure  and marketing materials meet legal and regulatory  expectations, are appropriate for the target audience and  accurately and fairly describe the product in question.  Macquarie has also implemented policies and procedures to  ensure that consumer complaints are handled in an  appropriate and time-efficient manner and that agreements  do not contain provisions which may be considered abusive  or unfair.  Macquarie approaches environmental management by  focusing on three areas: identifying and managing climate- related risks and opportunities, managing resources used in  our direct operations, and managing environmental issues in  investments (detailed in the ESG Risk Management section  of this report). Macquarie recognises that climate change presents  significant challenges to society and generates both risks  and opportunities for its business and stakeholders.  Consistent with Macquarie's strong risk management focus,  climate change and future carbon constraints are considered  within the existing risk framework. Macquarie’s approach is  based on:  Under this framework:  – identifying, assessing and managing the risks arising  from climate change and future carbon constraints  – identifying and leveraging opportunities for investment  and trading for Macquarie and its clients  – assessing and managing its own carbon footprint.  – businesses are responsible for considering greenhouse  and energy management during due diligence for new  businesses and products and addressing local  legislative requirements consistent with Macquarie's  (2)  Refers to Macquarie’s carbon neutral commitment across its  global corporate office energy use and corporate air travel  Maintaining carbon neutrality  – Since 2010, Macquarie  has maintained its Carbon Commitment (2 $^{)}$ by reducing and  offsetting emissions from its office energy use and business  air travel. The Carbon Commitment builds on Macquarie’s  response to risks and opportunities arising from climate  change, its investments and activities in renewable energy,  clean technology and environmental markets, and status as  a signatory to the CDP.  Macquarie’s Scope 3 emissions decreased by 23 per cent  compared to FY2013, largely due to updates in international  emission factors. Actual air miles travelled increased by 9 per  cent in this period. Macquarie continues to encourage the  use of video conferencing and has seen an increase in usage  of over 35 per cent in Macquarie’s five largest locations since  2013. Macquarie’s Scope 2 emissions decreased by 11 per cent  from FY2013. This reduction is the result of consolidation of  Macquarie’s offices, updates to emission factors and a  continued focus on energy use in Macquarie premises  globally. This included, a specific program of data centre  rationalisation and emphasis on occupying sustainable  buildings.  Reducing emissions from energy use  – In the year to 31  March 2014, Macquarie’s total Scope 2 and Scope 3  emissions reduced by 18 per cent from FY2013. FY2014 is  the third consecutive year of absolute emission reductions.  Scope 1 emissions are not reported as they are not material,  comprising less than 1 per cent of total emissions in Australia.  Macquarie’s direct environmental impacts predominantly  relate to the operation of Macquarie’s offices and data  centres and the resources consumed by these activities.  Macquarie strives to integrate resource efficiency and  sustainability into the day-to-day operations of Macquarie’s  offices and corporate operations through the implementation  of Macquarie’s Environmental Management Plan (EMP).  Macquarie does not consider its businesses to have any  material exposure to climate change regulatory risk.  Macquarie continues to monitor developments in climate  change regulation around the world. As a signatory to the  Carbon Disclosure Project (CDP), Macquarie reports detailed  information about its approach to the risks and opportunities  arising from climate change. Macquarie’s annual responses  are available on the CDP website.  Greenhouse and Energy Reporting Policy – Macquarie provides clients and staff with research and  information about the economic, policy and business  impacts of climate change  – Macquarie also uses its expertise in global carbon  markets to assist clients to prepare for compliance with  emissions trading and provides emissions risk  management products.  16 