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2015 Corporate Responsibility Highlights

2015 Corporate Responsibility Highlightss2.q4cdn.com/400719266/files/doc_downloads/061516...Grand Prix at the Cannes Lions International Festival of Creativity. Not only is Omnicom

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Page 1: 2015 Corporate Responsibility Highlightss2.q4cdn.com/400719266/files/doc_downloads/061516...Grand Prix at the Cannes Lions International Festival of Creativity. Not only is Omnicom

2015 Corporate Responsibility Highlights

Page 2: 2015 Corporate Responsibility Highlightss2.q4cdn.com/400719266/files/doc_downloads/061516...Grand Prix at the Cannes Lions International Festival of Creativity. Not only is Omnicom

Letter from our CEO

About Omnicom

2015 Highlights

Community

People

Environment

Governance

Commitments

About this Report

Table of Contents

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• BBDO India’s Touch the Pickle campaign, created for Procter & Gamble’s Whisper sanitary protection brand, encourages women to defy taboos about menstruation in India. The campaign won a Grand Prix at the Cannes Lions International Festival of Creativity.

Not only is Omnicom seeking ways to address social issues, we are also working to reduce our impact on the environment through agency-driven campaigns to reduce or offset emissions, limit paper use and manage business travel. We continue to provide the latest virtual meeting tech-nology giving our agencies tools to replace high carbon-impact business travel, wherever it makes business sense.

In 2015, Omnicom’s Board focused on addressing shareholder concerns related to board leadership and composition, as well as director tenure. We adopted a mandatory retirement age policy for directors, and enhanced the duties of our lead independent director who is elected annually.

This report celebrates the many ways we are working to achieve social and environmental progress. And, we’re doing it by using our strengths as an organization – our love of ingenuity and creativity, our commit-ment to collaboration, our respect for differences and our unique struc-ture of autonomous agencies.

Sincerely,

John D. Wren President & Chief Executive Officer

Dear Stakeholders,

For 30 years, Omnicom has grown by allowing the distinct cultures of our agencies to flourish independently. We thrive because of the many different perspectives, expertise and achievements our agencies bring to the table. But despite our differences, a culture of collaboration and creativity is the common core of Omnicom and our agencies. It is this cultural foundation of individuality and collaboration that underpins everything we do for our clients, our people, our shareholders, and the communities around us.

In the same way, we value diversity among our people. We strive to create an inclusive culture where everyone can have his or her voice heard. We support diversity through programs like ADCOLOR and Omniwomen that nurture and develop talented minority and women employees. Our Omnicom Professional Employee Networks (OPEN) help our people connect with one another and build a culture that respects differences. A new enterprise-wide Diversity Council helps us share our inclusion and diversity objectives across the Omnicom network. We are building a creative, collaborative, and compassionate environment where employees are empowered to bring their best ideas forward.

Like many companies around the world, we are working toward broader impact by aligning our progress with the UN Sustainable Development Goals, including poverty, education, environmental conservation and building a fairer, more sustainable society. In May 2016, we committed to supporting the 10 principles of the Global Compact with respect to human rights, labor, environment and anti-corruption.

We do this, in part, through campaigns we have had the privilege to work on with our clients that leverage our creativity for social good. Here are some examples from 2015:

• For the #IAmAWitness bullying prevention campaign, Goodby, Silverstein & Partners (SF) developed custom-designed emojis for an app that enables kids to speak up about bullying.

• Critical Mass, in collaboration with the UN Mine Action Service (UNMAS), raised awareness about the dangers of unexploded mines with Sweeper, an app that simulates walking through a minefield.

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Global Network of leading marketing and communications companies

ADVERTISINGDIGITAL AND INTERACTIVE MARKETINGSTRATEGIC MEDIA PLANNING AND BUYINGCUSTOMER RELATIONSHIP MANAGEMENTPUBLIC RELATIONSHEALTH CARE COMMUNICATIONS SERVICES

74K+ SPECIALISTS SERVING 5,000+ BRANDS

in millions 2015 2014 2013 2012 2011

Revenue $15,134 $15,317 $14,584 $14,219 $13,872Operating Income $1,920 $1,944 $1,825 $1,804 $1,671

Net Income $1,093 $1,104 $991 $998 $952

1500+ AGENCIES IN 100+ COUNTRIES

USA59%

WORLD41%

2015 REVENUE

FINANCIAL SUMMARY

Portfolio includes: Three global advertising agency networks: BBDO, DDB and TBWA; two of the world’s premier providers of media services: OMD and PHD, part of Omnicom Media Group. We also manage a global diversified group of agencies, under the DAS Group of Companies.

Other 25%Food and Beverage 13%Pharmaceuticals and Health Care 11%Technology 10%Consumer Products 9%Auto 8%Financial Services 7%Travel and Entertainment 6%Retail 6%Telecommunications 5%

2015 CLIENT MIX

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At Omnicom, we’re committed to promoting sustainable practices and making positive contributions to society around the globe. Details from our efforts are available at www.omnicomgroup.com. This document includes key highlights and progress from 2015, in the four areas on which we focus: Community, People, Environment and Governance.

2015 Omnicom CR Highlights

PEOPLELaunched Omnicom Professional

Employee Networks (OPEN)

Expanded Omniwomen chapters around the globe. Omniwomen is a global organization within

Omnicom dedicated to developing the female leaders of tomorrow

Worked with NGO partners in placing diverse candidates throughout our network of

companies and agencies

Graduated more than 3,500 global alumni from Omnicom University training in the last 10 years

ENVIRONMENT Lowered overall carbon footprint for the

fourth consecutive year

Reduced emissions from purchased electricity by 5 percent, and sourced nearly 10 percent

through renewable energy procurement

COMMUNITY Created hundreds of pro bono campaigns

through our agencies around the world

Gave back to local communities through a variety of grassroots and volunteer

programs with our agencies’ employees

GOVERNANCE Undertook board refreshment, including

electing a new lead independent director with expanded duties, and adopting a retirement

age for board members

Conducted dialogue with shareholders representing more than 50 percent of our stock

Added a new female independent director

Adopted proxy access with terms of 3 percent, 3-years, 20 percent of the Board

(with a two-director minimum)

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COMMUNITYFrom the grassroots volunteer efforts our agencies support locally to the global partnerships our networks forge, we support engagement at every level of our organization. Client work for nonprofits and corporations leverages creativity for positive change.

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Volunteering Omnicom people share their time and skills in all kinds of ways – from grassroots projects at individual offices to global initiatives involving hundreds of people. Our employees take pride in giving back on a personal level, whether through an Omnicom Media Group Hungary initiative to spruce up kindergarten walls with client-donated paint or by adopting a local women’s homeless shelter and buying residents clothing and toys, as Dallas-based DAS agency M/A/R/C Research did.

In another project, Omnicom and Omnicom Media Group enlisted client Disney EMEA to help inner-city London students improve their research skills. We asked students to pitch social media ideas relating to the film Inside Out to Disney, making recommendations directly to the company’s CMO. One surprise highlight occurred when Mickey and Minnie Mouse turned up at a briefing session for selfies.

“ONE HUNDRED provides end-to-end solutions to help our nonprofit clients integrate branding, marketing, commu-nications and fundraising to enhance internal cohesion and drive organizational growth.”

Brian Crimmins, Chief Executive Officer at Changing Our World, Inc. and Managing Partner of ONE HUNDRED

The Butterfly Home in Nepal has rescued and cared for over 500 children at risk for homelessness or prison

One Hundred: creating great brands for great nonprofitsAs the nonprofit market becomes more complex, we understand that the modern nonprofit expects the same bold, creative and impactful solutions as our globally renowned corporate clients.

ONE HUNDRED, a new agency within Omnicom Group’s DAS Group, integrates resources from six agencies – Changing Our World, Critical Mass, Interbrand, Ketchum, Porter Novelli and Russ Reid – to provide marketing solutions to nonprofit organizations around the world.

For example, through ONE HUNDRED, we partnered with Pushpa Basnet – activist and CNN Hero – who created The Butterfly Home, where she has cared for more than 500 children at risk for homelessness or even prison. Through a new brand identity and responsive website, we provided a platform to serve as a call to action and a digital context for Waiting for Mamu – a documentary film that chronicles Pushpa’s heroic story.

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Interbrand’s Annual Month of ServiceIn July, Interbrand offices all over the world gave back with their skills and knowledge during the annual “Month of Service.” In Singapore, employees volunteered at Willing Heart’s soup kitchens. In Mexico, Interbrand people joined with Fraternidad sin Fronteras to help abandoned children and homeless adults. In China, employees partnered with the Heart Education Community Youth Development Center to inspire and give confidence to young people. In these locations and many other places, Interbrand employees shared their skills and energy with local non-profits, start-ups and NGOs to create positive change.

Ketchum’s “Room to Read” Global Literacy Program Since 2008, Ketchum has worked with Room to Read, a global nonprofit dedicated to transforming the lives of millions of children in low-income countries by focusing on literacy and gender equality in education. The organization recently celebrated the significant achievement of benefitting 10 million children across Africa and Asia.

This year Ketchum employees raised money to complete libraries in Nepal and Tanzania, publish and distribute 5,000 local-language children’s books in Laos, fund scholarships for 82 girls in Zambia and train 200 teachers in South Africa.

To date, the partnership has involved 31 Ketchum offices and affiliates, and engaged more than 500 employees.

A “BIG HUG” FROM PHD WORLDWIDE Now in its fifth year, PHD Worldwide’s “Big Hug” initiative inspires PHD employees globally to take part in volunteering days, events and fund-raisers. This year:

• PHD Worldwide’s central team hosted activ-ities for special needs children in London

• PHD Singapore held a “Superheroes” event for the Children’s Cancer Foundation on Siloso Beach

• PHD Canada painted murals at CHU Sainte-Justine children’s hospital

• PHD Hungary joined with the Hungarian Federation of the Blind and Partially Sighted Guide Dog Training School to raise awareness around the value of guide dogs for the blind

In 2015, to honor PHD’s 25th anniversary, the agency launched the Big Hug 25 Challenge, challenging each region to pledge to take part in a minimum of 25 charitable acts throughout the year.

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#IamaWitness

Water is Life

Save Our Swirled

Unfairy Tales Nature is Speaking

CLIENT WORK FOR SOCIAL AND ENVIRONMENTAL IMPACT:

United States

Scroll over to learn more about a campaign

Red Kettle 826 Valencia

The World of Autism

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CLIENT WORK FOR SOCIAL AND ENVIRONMENTAL IMPACT:

Worldwide

Scroll over to learn more about a campaign

Sweeper

Safe Stories

Brewtroleum

Touch the Pickle

Feedie

Plaster

the Silence

Homeless Extras

The First Marathon of Responsible Driving

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PEOPLEOur talent sets Omnicom apart. We recruit the best people in the industry and shape great places to work to retain and build on that talent. A focus on inclusion and diversity further adds to our success.

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We support the industry’s commitment to diversityAs the advertising industry becomes more global, our people find themselves connecting brands with increasingly diverse audiences. As an industry, we need to be inclusive and diverse in order to create work that resonates with customers of varied backgrounds, racial and ethnic identities and gender orientations. Yet minorities are underrepresented in advertising, marketing and public relations. At Omnicom, we join our industry in committing to hire, support and include more diverse talent. It’s more than just the right thing to do. It’s the smart thing to do.

Diversity is built into Omnicom’s culture Inclusive diversity doesn’t just happen. It has to be supported, advocated for and managed. Over the last several years, we have developed an infrastructure that promotes diversity throughout our family of companies, including:

• A team of 12 full-time diversity professionals, two working out of our global headquarters and 10 spread throughout our networks and agencies, to lead our effort.

• Direct links between diversity and network CEO pay. A portion of each CEO’s incentive compensation is based on qualitative factors, including diversity.

• An enterprise-wide Diversity Council of 29 members meets quarterly to share best practices on strategy and drive national engagement events.

• Regular events, panels, talks and pride days that highlight the value of diversity through-out our organization.

Global women’s networkOmniwomen, a global organization within Omnicom, is dedicated to advancing women to senior leadership roles throughout Omnicom, as well as promoting networking and career opportunities. In 2015, Omniwomen expanded to the U.K.; efforts are in the works to establish chapters in Germany, France, Toronto, Los Angeles, Chicago, San Francisco, Japan and China.

Omniwomen helps women advance their careers by connecting with others – and it also generates new business ideas as women from different parts of our organization collaborate.

The Second Annual Omniwomen UK Leadership Summit, held on International Women’s Day 2015, was a day-long training program designed to inspire 200 of Omnicom’s rising female stars across its UK companies

Women in leadership: Cilla Snowball

Cilla is a champion of women in creative industries and recently participated in an Ad Age “Women to Watch” Reunion roundtable with other past honorees. In 2009, Queen Elizabeth made her a Commander of the British Empire, honoring her services to advertising.

“We can’t empower women without involving and engaging men. We’ve got to count targets and we’ve got to celebrate success.”

Cilla Snowball, Group Chairman and Group CEO, AMV BBDO

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Developing more women leaders Women make up roughly half of our workforce, but remain under-represented at the highest levels of our company. To address this, many of our networks and agencies have launched their own programs to increase the influence of women including TBWA’s Take the Lead 2020; DDB’s Talent has No Gender; Omnicom Media Group now has 70 percent of directors in its tech/analytics function who are women; women run 40 percent of the top-performing agencies in the DAS network; and lastly the vast majority of Omnicom UK’s management teams comprise 40 percent or more women, ahead of the Institute of Practitioners in Advertising’s (IPA) 2020 goal. These are just a few of the many programs that are helping to increase diversity and form a culture of inclusion within Omnicom.

TBWA’S ”TAKE THE LEAD” 20/20Women make up roughly half of our workforce, but remain underrepresented at the highest levels of our company. TBWA’s Project 20/20, “Take the Lead,” seeks to increase the number of women in leadership roles across its network by 20 percent by 2020. A global task force, led by Erica Hoholick, president of TBWA\Media Arts Lab, is spearheading the project.

Creating a more equal and inclusive workplace is everyone’s issue, and we should treat and promote it as such. …Things like parental leave, work-life balance – these issues affect each and every one of us, and if we aren’t working together to find a solution, we are only perpetuating the problem.

Troy Ruhanen, President & Chief Executive Officer of TBWA\Worldwide

Talent Has No Gender Talent is defined by many things – but not gender, race, age, religion or sexual orientation. That’s the message behind the #TalentHasNoGender campaign sponsored by DDB Worldwide. The campaign celebrated International Women’s Day with a global gender blackout, where everyone in DDB’s 2,000+ employee network was asked to make their LinkedIn profiles gender neutral – changing profile pictures, names and other attributes to eliminate gender references. Then in June for Pride Month, DDB extended the campaign by launching a similar microsite to support #PrideInTalent, which encourages people of every gender identity to bring their true selves—their whole selves—to work.

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From Toronto to Mumbai: Eliminating unconscious bias with the NeuroLeadership Institute Often bias against women, minorities or LGBT individuals isn’t intentional. It stems from unexamined attitudes that people may not even realize they hold. To attack this kind of bias, DDB partnered in 2015 with the NeuroLeadership Institute, a leading global research organization that applies neuroscience to the science of leadership.

Dr. David Rock, Director & CEO of the Institute, created a program for over 200 executive leaders at DDB from around the globe, to explore bias’ biological underpinnings and propose a framework for creating change from the top down.

Championing diversity and inclusion across AsiaOmnicom agencies worldwide are focused on advancing diversity and inclusion. Notable examples across our Asian networks included:

• FleishmanHillard Asia Pacific sponsored the “Break The Ceiling, Touch The Sky” conferences to promote female leadership in the private sector, held in Singapore in 2015 and New Delhi in 2016.

• BBDO Group China continued to invest in multicultural employees by sending key staff to the “Rising Stars” training in Phuket, Thailand run by external consultants and regional agency leaders.

OMNICOM UNIVERSITYTraining starts at the top with the industry- leading Omnicom University (OU), which was founded in 1995. This training uses the Harvard Business School case study method, employing examples from around Omnicom’s global business network to teach leadership and business skills. Classes are led by pro-fessors from Harvard Business School, China Europe International Business School (CEIBS) in China and IESE Business School in Spain.

“OU gives our leaders a chance to rethink, reboot and refresh – and during these times of rapid change in our industry, it’s important they have those opportunities.”

Janet Riccio, Executive Vice President of Omnicom Group, and Dean of Omnicom University Professor Luis Huete, IESE teaching

Omnicom executives in Milan

Omnicom Group became a corporate partner of the China Europe International Business School (CEIBS) in 2007. Since then, nearly 400 students have completed Omnicom’s CEIBS Advanced Management Program.

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OPEN Networking groups help diverse employees connect with each other to share ideas and experiences. In the fall of 2015, we launched the Omnicom Professional Employee Networks (OPEN), an umbrella group for all of the company’s network business resource groups and activities. One area of focus is OPEN PRIDE, with LGBT Pride events planned for 2016.

ADCOLOR® celebrated campaigns that broke ground for diversity and inclusion in 2015. Omnicom campaigns including BBDO New York’s “The Walk” campaign for Pedigree, BBDO San Francisco’s “Learn Sign Language” campaign for Wells Fargo and GSP’s “Emily’s Oz” cam-paign for Comcast were among those honored this year.

watch video

REACHING DIVERSE GROUPS WITH COMMUNITY AND INDUSTRY PARTNERSHIPSIn addition to our work with ADCOLOR, Omnicom collabo-rates with a variety of industry and community organiza-tions to create opportunities for diverse talent.

4A’s Multicultural Advertising Intern Program: Full-time, paid internships for diverse young professionals provide real-world work experience, training and development and networking opportunities within the industry.

AAF Mosaic Center: A leader in multicultural marketing/advertising and inclusion issues and sponsor of the AAF Most Promising Minority Students internships.

The Brotherhood/Sister Sol: Learning and support programs for Black and Latino youth in impoverished communities.

Ghetto Film School (GFS): An organization that educates, develops and celebrates the next generation of diverse filmmakers.

GLAAD: Collaboration with print, broadcast and online news sources to bring people powerful stories from the LGBT community.

LaGrant Foundation: Scholarships, career and develop-ment workshops, mentoring and internships for minority students in PR and Communications.

Celebrating diversity with ADCOLOROmnicom and its networks are proud supporters of ADCOLOR. This nonprofit organization was founded by our own Senior Vice President and Chief Diversity Officer Tiffany R. Warren in 2007 to champion diversity and inclusion in creative industries.

Over the last 12 years, ADCOLOR has created a network of outstanding diverse professionals and advocates across our industry by honoring their accomplishments and leveraging their stories as a road map for others to follow. By highlighting the achievements of African-Americans, Native Americans, Asian Americans, Hispanics, members of the LGBT community and diversity and inclusion champions, ADCOLOR has inspired a new generation of multicultural professionals.

“ADCOLOR completely changed the trajectory of my career, intro-ducing me to so many people who continue to give me mentoring and advice.”Jessica Chung, Beta Copywriter, TBWA/Media Arts Lab

TWBA/Media Arts Lab employees in Los Angeles, CA participate in a Pride march

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Promoting supplier diversityWe work with a diverse group of suppliers for many reasons. They bring us new creative perspectives and capabilities. They can help us speak more powerfully to our clients’ diverse customers. They are also among the United States’ fastest-growing, most dynamic companies, and many invest in the communities they come from, amplifying the social benefit of the dollars we spend with them. But mostly we work with diverse suppliers that meet our standards because of what they bring to the table. Diverse suppliers help us deliver great work for our clients.

Finding qualified suppliers with women, minority or LGBT leadership isn’t always easy. These firms tend to be less well-known to us and our clients. In some cases, they may not yet be big or experienced enough to serve large global clients. Others lack certification that qualifies them as diverse companies for reporting purposes.

Our diversity teams work hard to identify top-quality suppliers and connect them to clients. For instance GSD&M in Austin, Texas hosts an annual Diverse & Small Business Enterprise Summit, where suppliers can make presentations to marketing decision-makers. TBWA has developed a clickable map of diverse suppliers so creative teams can instantly identify candidates for jobs in any location across the United States.

Through initiatives like these, Omnicom companies are helping clients meet their own diversity targets ranging from 5 percent to 25 percent of total spend. Our supplier diversity results help clients reach their goals, all the way up to the Billion Dollar Roundtable, a designation for Fortune 500 corporations that have formally committed to procuring at least $1 billion annually in goods and services from diverse businesses.

GSD&M hired Territory Post, a small and certi-fied minority-owned creative, editorial and post production house, to develop a series of train-ing videos for the US Air Force. The creative team at GSD&M was looking for a youthful and energetic approach to appeal to young people, their parents and influencers.

watch video

Mary Nittolo of the Studio NYC is one of the industry’s leading animators and a woman-owned business supplier to Omnicom. Her short animation “Scarlett” helped launch Children’s Cancer Foundation.

TRANSGENDER BENEFITS At the beginning of 2016, Omnicom began covering transgender benefits as part of its health and well-ness program, joining a vanguard of more than 500 progressive companies tracked by the Corporate Equality Index that offer these benefits.

Omnicom celebrated International Women’s Day on March 8, 2016 with this thought-provoking DDB Worldwide video #talenthasnogender.

watch video

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ENVIRONMENTClimate change and resource scarcity are challenges we must address. Our environmental impact comes mainly from office energy use and business travel. We’re optimizing the footprint of our facilities by consolidating space where possible and managing our business travel more efficiently.

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Carbon footprintWe have a responsibility to cut greenhouse gas (GHG) emissions wherever we can to help reduce climate change impacts. In 2015, our overall carbon footprint dropped for the fourth consecutive year, while our energy use was down by more than 10 percent from 2014 levels, reflecting our increased office consolidation around the world. We’re working with energy consultants to conduct energy efficiency audits at our existing locations and with architects to incorporate energy efficient design into our new offices.

In 2015, we also reduced emissions from purchased electricity by 5 percent and sourced nearly 10 percent through renewable energy procurement. Green energy has been a major focus of our carbon reduction program in the U.S., where renegotiated contracts have helped to reduce costs and emissions. We’re evaluating similar opportunities in other markets to reduce our global energy footprint through greater efficiency and purchasing electricity from renewable sources.

We established our baseline in 2008 across all agencies encompassing electric, fuel oil and natural gas consumption, as well as employee business-related automobile and air travel. We use the Greenhouse Gas Protocol guidelines for our calculations.

Energy savings through space reductionOne way Omnicom can enhance energy efficiency is by reducing the number of properties we occupy and being more efficient

in addressing our space needs. In 2015, we reduced space by 5.4 percent, or nearly 1 million square feet worldwide.

In our New York City office, we located multiple agencies into a single building, reducing our footprint by one-third. The open seating plan, emphasizing shared collaborative space and state of the art technology, decreases the need to schedule meetings offsite and book travel. Energy efficient LED lighting is fitted through- out the space and does not require light bulb replacement.

In London, Omnicom combined multiple properties and agencies into a single facility called Bankside 2&3. The 370,000 square foot property reduced our UK footprint significantly. Power use is managed with state-of-the-art heating and cooling, energy efficient lighting and occupancy sensors. Built-in technology, including Wi-Fi, video conferencing and internet-equipped hot desks located throughout the building, support a mobile, flexible workforce.

Similar space-reduction and energy efficient design projects have been completed in San Francisco, Los Angeles and Berlin.

Omnicom also reduces energy use through flexible work arrangements, including telecommuting and flexible scheduling and job sharing. Telecommuting reduces the amount of fuel Omnicom people use to get to work, cutting greenhouse gas emissions, energy consumption and air and water pollution.

In 2015, we saved energy by combining offices and reducing space by nearly 1 MILLION SQUARE FEET WORLDWIDE

Bankside 2&3 in London

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A strategic approach to business travelBusiness travel is the largest contributor to our carbon footprint, but it’s essential to our business. We simply cannot serve our clients without meeting them face to face. We’re strategic about travel, however, prioritizing necessary trips, while reducing less critical ones and scheduling multiple meetings in the same location where possible. We also recognize virtual technology can replace some business travel; most of our agencies and networks have the latest videoconferencing technology.

Procurement and recyclingAs a holding company, Omnicom doesn’t have companywide guidelines for environmentally friendly purchasing and recycling. Our networks and agencies take the lead in establishing their own green initiatives, finding many different ways to do business sustainably.

Led by our Strategic Alliance Services (SAS), we strive to use energy-efficient methods of procurement and seek out energy-efficient office equipment, such as personal computers and servers, printers and paper sourcing, whenever possible. We also encourage the safe recycling and reuse of office equipment, where applicable, and will work with vendors, where appropriate, to establish recycling programs.

REDUCE, REUSE, RECYCLE AT GSD&MRecycling is part of the culture at GSD&M in Austin, Texas.

“For many years we were trying to reduce our paper consumption. Now we hardly use any paper in our building, and we recycle every bit of it. We also have glass and aluminum can recycling in all of our kitchenettes and battery and phone recycling. GSD&M even encourages returning travelers to put their hotel soaps and shampoos into baskets for donation to the homeless.”

David Rockwood, Vice President, Community, GSD&M

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GOVERNANCEStrong governance keeps our organization moving toward its goals, while responding to the needs of shareholders. In 2015, the Board continued a program to increase independent oversight and refresh its own membership with new directors as well as build on the diverse nature of our board.

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“We believe that regular, transparent communication with our shareholders is critical to our long-term success.”

Leonard S. Coleman, Jr., Lead Independent Director

Board oversight and shareholder engagementThe Board oversees all of Omnicom’s business strategies, including its corporate responsibility efforts. Chief Diversity Officer Tiffany R. Warren reports annually to the Board on inclusion and diversity results, while updates on environmental and community initiatives are provided as needed.

Board structureOur Board consists of 12 directors: 10 independent or outside directors, our Chairman Bruce Crawford and our President and Chief Executive Officer John D. Wren. As part of our ongoing efforts to improve governance and oversight, the independant members of the Board also elected a Lead Independent Director, Leonard Coleman, in December and expanded the Lead Independent Director’s responsibilities to enhance independent oversight. Each director stands for election annually. The Board met seven times in 2015 and has Executive, Finance, Audit, Compensation and Governance committees that meet separately. For more information, see our proxy statement.

Refreshing our board to respond to shareholder concernsLast year, Omnicom focused on addressing shareholder concerns relating to board leadership and composition. Through engagement with a majority of our shareholders, we identified concerns about the lengthy average tenure of our directors, a

lack of meaningful board refreshment and the implications these factors could have on independent oversight.

The Board has taken very significant steps to respond to these concerns, including adoption of a board retirement policy that will result in six of our Board members stepping down over the next two years. Under the new policy, directors reaching the age of 75 will not stand for reelection, effective December 31, 2017.

Board diversityDiverse boards are more effective boards. A study by Credit Suisse found companies with at least one woman on the board outperformed companies with none by 26 percent over a six-year period.

Omnicom is committed to board diversity. We have already added a new female independent director, Deborah Kissire, in 2016; women now hold four of 12 directorships. In addition, we will continue to seek female and minority candidates for spots that open up as long-standing directors retire.

Our Board faces a special challenge in recruiting new members since, in order to be considered independent, they must have minimal business dealings with the hundreds of global companies served by our networks and agencies. Given this challenge, our approach has been to set goals rather than quotas, looking for qualified candidates who will bring a diversity of skills and mix of experiences to the Board.

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Commitment 2016 Plan

COMMUNITY

Continue to support the communities where we work Maintain and build our strong connections with communities through volunteer work, pro bono campaigns and financial support

PEOPLESupport industry-wide diversity through programming and financial support

Continue to support ADCOLOR and other industry-wide diversity efforts

Expand Omniwomen program to additional regions of the worldMaintain a diverse supplier base and encourage diverse supplier certification Promote Omnicom’s Supplier Diversity database across our global network of agencies to drive supplier diversity

Increase the number of diverse employees Widen outreach to non-profit and educational organizations to increase diversity of hiring pool

Provide Omnicom employees with annual diversity trainingIncrease the number of employees who recieve unconscious bias training

Train CEO leadership across all networks in diversity topics

ENVIRONMENT

Increase the proportion of renewable energy use Consider renewable energy sources in all energy procurement decisions

Enhance travel policies to reduce carbon emissions Craft and distribute recommendations to reduce emissions for business travel

Increase the number of offices using recycled content office supplies Encourage and track use of procurement sources providing recycled content office supplies

GOVERNANCE

Maintain a diverse and independent board

Enhanced the duties of the Lead Independent Director position on the Board of Directors in 2015, and formalized the election process to require annual election to this role by the independent members of the Board

Two long-serving directors will step down from the Board at the end of their current terms at the 2016 annual meeting in accordance with the new retirement age policy

Continue to reduce average tenure of the BoardEnsure Board of Directors is informed by senior Omnicom staff of strategy and progress on corporate responsibility issues

Senior staff tasked with responsibility for oversight of corporate responsibility efforts to brief the board of directors annually on our progress

Continue to engage with shareholders on corporate responsibility issues

Continue shareholder engagement process to discuss corporate responsibility matters, including diversity and inclusion and governance

Commitments and 2016 Plans

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This report provides a high-level overview of Omnicom’s corporate responsibility commitments, activities and progress in 2015. The report is organized by our four main focus areas: Community, People, Environment and Governance. We have included highlights from our diverse network of agencies to characterize our impact on social and environmental issues around the world.

Material issues identificationIn developing this report we consulted the GRI G4 Guidelines, the CDP framework, the Sustainability Accounting Standards Board (SASB) Marketing and Advertising sector guidelines, the UN Global Compact and the Sustainable Development Goals to determine relevant material issues.

Stakeholder engagementIn addition to consulting global reporting frameworks, the content of this report was developed through stakeholder interviews with Omnicom executives, subject matter experts, network company representatives and key supplier and client feedback.

The Governance section of this report was influenced by our ongoing shareholder engagement, specifically a series of direct dialogues with our largest shareholders throughout late 2015.

ScopeThe data in this report covers Omnicom’s global operations in FY2015 (from January 1 – December 31, 2015). Unless otherwise noted, data within the report reflects our United States operations.

Looking forwardWe plan to publish an annual comprehensive corporate responsibility report that fulfills the requirements for the Global Reporting Initiative and the UN Global Compact Communication on Progress.

About this ReportALIGNMENT WITH THE UN GLOBAL COMPACTOmnicom committed to align with the ten princi-ples of the UN Global Compact in May 2016 and we will communicate details of our progress in our next report.

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and

Principle 2: make sure that they are not complicit in human rights abuses.

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory labor;

Principle 5: the effective abolition of child labor; and

Principle 6: the elimination of discrimination in respect of employment and occupation.

Principle 7: Businesses should support a precautionary approach to environmental challenges;

Principle 8: undertake initiatives to promote greater environmental responsibility; and

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.