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2022 ESG Report

Succeeding Together

Change is up to all of us

In 2022, our four global businesses contributed to a range of ESG issues.
As the world faces a host of urgent challenges, including geopolitical instability, economic uncertainty, social inequities and the ongoing war in Ukraine, we continue to see significant opportunity to support colleagues, clients and communities with regard to environmental, social and governance initiatives.

Message From Our ESG Committee Chair

Dear colleagues, clients and shareholders,

The environmental, social andgovernance (ESG) landscape hasrapidly evolved since our first ESGreport in 2020. From shareholderactivism to emerging regulations,the expectations on companiesand their Boards to respond tostakeholders on ESG matters isbecoming increasingly complex.

լи McLennan considers theviewpoints of all our stakeholders,including our shareholders, colleagues,clients and the communities where welive and work. Throughout the year, ourBoard collaborates with managementto continually evaluate and shape ourESG strategy to be responsive to thesevarious needs. Importantly, the Boardworks with management, not just todevelop a clear vision of what լиMcLennan’s ESG strategy is, but tounderstand how this strategy is actuallyimpacting our stakeholders.

In that spirit, I am proud to introduceլи McLennan’s third annualESG Report, which builds off thegroundwork laid in the past twoyears to increase transparency ofthe tangible outcomes of our ESGinitiatives. In this year’s report, wehave expanded our disclosures tobetter connect the dots betweenstrategy and results — fromadditional metrics to show progresson our diversity, inclusion andbelonging initiatives, to reaching ourinitial goal of more than 30% femalerepresentation on our Board.

We believe this allows our variousstakeholders to better track thecompany’s performance againstour commitments.

լи McLennan has made greatstrides on ESG and is delightedto present that progress in thisyear’s report.

Sincerely,

Lloyd Yates
Chair, Board ESG Committee,լи McLennan

Message From Our President & CEO

Dear colleagues, clients and shareholders,

լи McLennan has the privilege of helping our clients find opportunity and navigate pressing issues in the areas of risk, strategy and people. A number of these issues fall within the broad spectrum of ESG — from guiding sustainable investments, to supporting diversity and inclusion, to improving healthcare systems, confronting cyber threats, and helping close the world’s protection gaps.

We have a long track record of ESG engagement and achievements. As the world faces a host of urgent issues, including geopolitical instability, economic uncertainty, social inequities and the ongoing war in Ukraine, ESG is an area in which we continue to see an opportunity to support our colleagues, clients and communities.

Some of our work takes place aspart of broader, global initiatives such as the UN’s Race to Resilience program, where we’re championing disaster-risk-reduction initiatives that make communities stronger. But much of it takes place with clients across our four global businesses, as we help enable them to meet their ESG goals. Increasingly, our clients’ changing needs require the collectivecapabilities of լи McLennan.

One of the areas we’re focusedon is helping businesses developlow-carbon business models and manage risks associated with the transition to a low-carbon economy.

Given the necessity of a secure energy supply for all, we believe we can best serve communities by working with operators of clean energy assets to accelerate progress to a lower carbon world and with traditional energy clients to enable them to make the transition as quickly and responsiblyas possible.

Meanwhile, we’re leading by example, starting with the commitment we announced in March 2022 to set and execute low-carbon transition strategies that chart a path to net-zero across our operations by 2050 — and reduce our emissions by 50% by 2030.

I am proud of the ESG progress we’ve made that you’ll see reflected in this report, and grateful for our more than 85,000 colleagues, who help our clients and communities meet their biggest challenges, build resilience and find new possibilities every day.

All the best,

John Doyle
President and Chief Executive Officer

Succeeding Together


2022 ESG Report

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Kate Brennan, General Counsel & Executive Sponsor, Management ESG Committee:
"We believe the ESG strategies that we adopt – and are proud to share in this report – create sustainable long-term value for our stakeholders."
Environment
By making our operations more sustainable, assisting our clients on their sustainability journeys and providing our thought leadership, լи McLennan is helping enable the transition to a low-carbon economy. Our deep expertise, innovative thinking and the collective strength of all our colleagues will be our greatest resources as we address the challenges and opportunities ahead.
Paul Harvey, Head of Global Sourcing & Procurement:
"We’re integrating sustainability considerations into our purchasing decisions. For example, in 2022, 99% of our purchased laptops were EPEAT Gold certified."
Highlights

Colleagues in the UK volunteered at the Keddlestone Community Centre which includes multiple community gardens, two orchards and hundreds of individual and communal beds. The group completed a variety of tasks including planting seedlings, weeding flower beds and repairing wooden planters.

Highlights

Colleagues in the UK volunteered at the Keddlestone Community Centre which includes multiple community gardens, two orchards and hundreds of individual and communal beds. The group completed a variety of tasks including planting seedlings, weeding flower beds and repairing wooden planters.

Internal

  • Committed to achieving net-zero carbon emissions across our global business operations by 2050, with a 50% emissions reduction by 2030.
  • Maintained certification as a CarbonNeutral® company for all of our global operations.
  • Eliminated single-use plastics in 100% of office pantries.

External

  • Advanced conversations at COP 27 around the orderly investment transition, the insurance sector’s role in climate adaptation and the link between climate and nature.
  • Oliver Wyman launched a 3D carbon accounting service that allows companies to quantify and better understand their emissions.
  • Mercer developed a climate-investing benchmarking tool and framework that provides practical climate investing protocols.
Social
At լи McLennan, our people are the foundation of the company, and they work every day to make a difference in the moments that matter for clients, communities and each other. We strive to help our colleagues achieve their best, feel a sense of belonging, prioritize their health and well-being and give back to their communities. We are also accelerating impact for our clients by setting new standards in innovation.
Edith Clee, Global Head, HR Strategy, Analytics & Rewards:
"We leverage data‑driven approaches to inform, shape and monitor our people strategy. We use these insights to create engaging work experiences."
Highlights

We launched our RISE program in 2022, partnering with Historically Black Colleges and Universities and organizations such as NAAIA to create a pool of diverse talent.Colleagues shared their experiences at the National Black MBA Association conference.

Highlights

We launched our RISE program in 2022, partnering with Historically Black Colleges and Universities and organizations such as NAAIA to create a pool of diverse talent.Colleagues shared their experiences at the National Black MBA Association conference.

Internal

  • Earned an 80% favorability score on our annual all-colleague engagement survey.
  • 95% of our colleagues completed at least one training or learning program across our learning platforms.
  • Over 4,000 colleagues raised $1.4 million to support the people of Ukraine through three humanitarian organizations.

External

  • Mercer published its Stepping Up for Equity study to help employers craft a clear, comprehensive and impactful roadmap for closing the career, health and wealth gaps in the US workforce for Black employees.
  • Lippincott worked pro bono with NYC Pride to evolve its brand and bring to life in a new brand identity.
  • լи McLennan published Life Support: A People Prescription for Resilient Health Systems, which examines the massive workforce challenge faced by acute-, primary- and secondary-care providers.
Governance
At լи McLennan, strong governance practices drive our business and are the foundation of our company. We’re committed to upholding best practices in corporate governance, conducting ourselves ethically and earning and keeping the confidence of our shareholders. Our ESG initiatives are built upon our dedication to strong governance.
Connor Kuratek, Deputy General Counsel & Corporate Secretary:
"We know maintaining strong governance practices requires proactively anticipating and adapting to the evolving needs of all stakeholders."
Highlights

President & CEO John Doyle met with policymakers to discuss the importance of cyber insurance for cyber security and how it makes institutions and businesses more resilient in the face of cyber risk.

Highlights

President & CEO John Doyle met with policymakers to discuss the importance of cyber insurance for cyber security and how it makes institutions and businesses more resilient in the face of cyber risk.

Internal

  • Reached initial goal of 30% women representation on our Board of Directors.
  • Introduced a new Financial Crime training to safeguard լи McLennan against illegal activity and the risks posed by sanctions, corruption and money laundering.
  • Strengthened our cybersecurity capabilities and developed a multi-year plan to further mature our program.

External

  • լи developed the ESG Risk Rating tool to help clients self‑assess the maturity of ESG within their organizations. 
  • President & CEO John Doyle met with the Office of the National Cyber Director to discuss the insurance industry’s important role in enhancing global cybersecurity. 
  • Our Government Relations team engaged the US Treasury and the US Federal Insurance Office regarding the (re)insurance market in Ukraine and how to support Ukrainian grain exports and global food security.