FEATURED DOCUMENTS REPORT Empowering Sustainable Futures: 2023 ESG Report ⤓ REPORT Succeeding Together: 2022 ESG Report ⤓ REPORT Accelerating Impact: 2021 ESG Report ⤓ REPORT Changing What's Possible: 2020 ESG Report ⤓ REPORT Our Code of Conduct ⤓ DOCUMENTS BY CATEGORY Environmental › Environmental Diversity & Inclusion Human Rights Statement Governance Pay Equity Supply Chain Tax Transparency The Greater Good ENVIRONMENTAL REPORT 2023 GHG Inventory Verification Sta

FUTURES

2023 ESG Report

Contents

Overview

3

Environmental 8

Social

19

Governance

34 Appendix 48

Message from our ESG

committee chair . . . . . . . . . . 3

Message from our President

and CEO . . . . . . . . . . . . . . . . . 4

About us . . . . . . . . . . . . . . . . . 5

Our approach to ESG . . . . . 7

Our emissions . . . . . . . . . . . . 9

Operational

sustainability . . . . . . . . . . . . . 12

Creating a sustainable

supply chain . . . . . . . . . . . . . . 14

Committed partners

on sustainability . . . . . . . . . . 15

Our people . . . . . . . . . . . . . . 20

Our Internal Labor

Market . . . . . . . . . . . . . . . . . . . 21

Inspiring leadership . . . . . . . 22

Building a vibrant and

inclusive culture . . . . . . . . . . 23

Opportunities to learn

and grow . . . . . . . . . . . . . . . . . 27

Creating a great

colleague experience . . . . . 28

Actionable solutions

for clients . . . . . . . . . . . . . . . . 31

Corporate Governance . . . . 35

ESG governance . . . . . . . . . . 36

Enterprise risk

management . . . . . . . . . . . . . 37

Engaging responsibly . . . . . . 38

Ethics and compliance . . . . 39

Cybersecurity and

data privacy . . . . . . . . . . . . . . 40

Government relations . . . . . 43

Sharing our unique

expertise . . . . . . . . . . . . . . . . 45

Product and service

innovation . . . . . . . . . . . . . . . . 47

Appendix 1 . Performance

data tables . . . . . . . . . . . . . . . 49

Appendix 2 . 2023

ESG index . . . . . . . . . . . . . . . . 52

Appendix 3 . 2023

TCFD index . . . . . . . . . . . . . . 57

Appendix 4 . UNEP FI principles for sustainable

insurance . . . . . . . . . . . . . . . . 58

Empowering Sustainable Futures-2023 ESG Report 2

Message from our esg committee chair

We have moved beyond commitments to taking action.

Lloyd Yates

Chair, Board ESG Committee, Marsh McLennan

Throughout 2023, the global risk landscape continued to evolve rapidly. The year saw breakthroughs in artificial intelligence, along with rising geopolitical tensions, growing cyber threats from malicious actors and numerous extreme weather events.

At the same time, the approach to environmental, social and governance (ESG) topics became increasingly complex against this backdrop. As stakeholders have deepened their understanding of ESG issues, expectations for public companies have shifted. Companies are expected to proactively navigate ESG risks by taking concrete steps to build resilience at all organizational levels. We have moved beyond commitments to taking action.

Our board collaborates with management on shaping ESG strategy, providing insights and perspectives on emerging risks and evolving stakeholder views on an ongoing basis throughout the year. In 2023, we endorsed management's submission to the Science Based Targets initiative and management's decision to conduct an ESG double materiality assessment to identify priority ESG topics in our rapidly changing environment.

This year's report builds on previous disclosures to show how Marsh McLennan is taking action, whether by adding capabilities for clients, making progress toward commitments, expanding disclosures or, in some cases, staying the course. There is much to be proud of in Marsh

Lloyd Yates

Chair, Board ESG Committee, Marsh McLennan

Sincerely,

Message from our president and ceo

No company, industry or government can create change on its own.

John Doyle President and Chief Executive Officer

Every day at Marsh McLennan, our more than 85,000 colleagues around the world help clients and communities see possibility and seize opportunity. With our specialized capabilities and expertise, we're uniquely positioned to deliver actionable solutions that address their challenges-including those that sit within the broad parameters of environmental, social and governance (ESG).

We help our clients clarify the complex so they can make critical decisions with confidence on issues related to everything from building climate resilience to expanding workplace diversity. The scope of this work- and the successful outcomes we help enable for our clients-often extends to communities and societies around the world.

And we hold ourselves to a high standard by modeling the behaviors we want to see in the world.

In 2023, for example, we submitted climate goals to the Science Based Targets initiative for validation as part of our commitment to achieve net-zero emissions across our global business operations by 2050. We have a strong enterprise risk management strategy in place, and our more than 85,000 colleagues around the world share one code of conduct. And knowing that different perspectives and backgrounds make our company stronger, more innovative and more reflective of the clients we serve, we continue to analyze and share more granular diversity representation data.

No company, industry or government can create change on its own. Addressing complex challenges such as climate change will requirenew partnerships, deeper trust and collaborative approaches.

It's a privilege to contribute to collective action on global challenges, and the ESG progress outlined in this report is a testament to the extraordinary work our colleagues do every day to enable success for our clients and communities.

We look forward to the important work ahead, engaging with our colleagues, clients, shareholders, communities and governments around the world to meet challenges, build resilience and find opportunity.

All the best,

President and Chief Executive Officer

About us

Marsh McLennan (NYSE: MMC) is the world's leading professional services firm in the areas of risk, strategy and people. We help clients build the confidence to thrive through the power of perspective of our four market-leading businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman.

Our businesses

Risk and insurance services

Marsh provides data-driven risk advisory services and insurance solutions to commercial and consumer clients.

Guy Carpenter develops advanced risk, reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities.

Consulting

Mercer delivers advice and technology-driven solutions that help organizations redefine the world of work, reshape retirement and investment outcomes, and unlock health and well-being for a changing workforce.

Oliver Wyman serves as a critical strategic, economic and brand advisor to private sector and government clients.

Marsh McLennan is a global professional services firm with comprehensive expertise across risk, strategy and people. We partner with clients, colleagues, investors and communities in building the confidence to thrive through the power of perspective.

Our strengths unite us across disciplines and around the world:

Committed partners

We work with curiosity, care and integrity to understand clients' unique needs and enable their ultimate success.

Unique expertise

We bring a distinct combination of capabilities, clarifying the view of present and future risks and opportunities.

Actionable solutions

We provide practical solutions to organizations' most pressing challenges, delivering results that help businesses and communities thrive.

Our approach to ESG

We have formally integrated ESG considerations into our decision-making processes since 2008 and believe that transparent and consistent disclosure enables better-informed business and investment decisions.

ENVIRONMENTAL

By making our operations more sustainable, supporting our clients on their sustainability journeys and sharing our powerful perspectives, we are helping enable the transition to a low-carbon economy. Our committed partnerships, unique expertise and actionable solutions are a distinct advantage as we address the challenges and opportunities ahead.

Highlights

Internal

Submitted our climate targets to the Science Based Targets initiative for validation.

Continued to transition to renewable energy across our operations, leading to a 45% reduction in Scope 1 and 2 emissions since 2019.

Endorsed the Mangrove Breakthrough with Oliver Wyman to promote the protection and conservation of mangrove habitats.

External

Conducted a climate resilience analysis for the Dubai Energy and Water Authority's Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world.

Received Insurance Insider's Brokering Innovation of the Year award for our role in the first community- based catastrophe insurance pilot with the Center for NYC Neighborhoods.

Our emissions

Climate change is a universal issue, and every sector has a role to play. 2023 was a year of extreme weather. According to the US National Oceanic and Atmospheric Administration (NOAA), it was the warmest year on record, and the US experienced 28 weather-related disasters that each caused at least US$1 billion in damages. From rising frequency of extreme weather events to supply chain disruptions, we are already seeing the increasing impacts of climate change on global business and communities.

As a leader in risk, strategy and people, we develop solutions to help companies and communities navigate the transition to a resilient, 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 responsibly as possible. As we work to support our clients on their decarbonization journeys, we are taking steps to reduce our own emissions.

Our commitment to net zero

In March 2022, we announced goals to achieve net-zero carbon emissions across our global business operations by 2050, with a 50% emissions reduction by 2030. We also signed a commitment letter to submit these targets to the Science Based Targets initiative for validation. This past year, we successfully completed this step. As we work toward our goals, we will focus on reducing our emissions through technological advances, including renewables; internal policies that empower colleagues to make more sustainable choices; and partnerships with key stakeholders, such as our suppliers.

Physical climate risk

Our Business Resiliency Management (BRM) team aims to prepare, detect and respond effectively to adverse events and threats that may impact Marsh McLennan's colleagues, operations and assets.

To evaluate risks, each office is assigned a tier from 1 to 4, based on business impact. Tier 1 and 2 locations undergo annual (Tier 1) or biennial (Tier 2) reviews of location-related risks, including risks from extreme weather and climate-related events, such as flooding, tornados, wildfires, hurricanes, and extreme heat or cold.

Identified risks are reviewed and classified as high, medium or low based on impact and likelihood, and mitigation actions are captured for follow-up and implementation.

Each of our locations have incident response protocols to respond to identified risks, and our office leaders attend annual crisis management training sessions.

Emissions and energy usage

We measure our emissions in accordance with the Greenhouse Gas Protocol and have our data verified by LRQA, a third-party verifier. As part of our Science Based Targets submission, we calculated our first full Scope 3 inventory for calendar years 2019 and 2022, our baseline year and the most recent year of full data. Our emissions are primarily driven by our offices, business travel, and the equipment and services we procure to run our organization. As is the case for many companies, Scope 3 represents the majority of our overall footprint.

Our energy consumption includes electricity used in our offices and data centers and fuel used in space heating and our company car fleet. Electricity consumption represents the majority of this usage, and transitioning to renewable electricity is an important part of how we plan to reduce our emissions.

A detailed breakdown of our energy usage and greenhouse emissions can be found in the Performance Data Tables in the Appendix.

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MMC - Marsh & McLennan Companies Inc. published this content on 22 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 April 2024 13:12:06 UTC.