Corporate Responsibility and Sustainability

Welcome to our 2011 Corporate Responsibility and Sustainability Report. In this report, we discuss our approach to corporate responsibility and sustainability in our products and services as well as our operations. We publish this report annually. This year, the report takes the form of this website and is supplemented by our Corporate Responsibility and Sustainability Review, which provides a high level overview of CRS at McGraw-Hill. You can download the CRS Review here. All data in the report relates to calendar year 2011 and covers our global operations unless otherwise noted.

Transparency is the cornerstone of our business. We apply this same level of transparency to our CRS performance and reporting. We have prepared our report according to the Global Reporting Initiative (GRI) guidelines and are self-reporting at the GRI Application Level C. Click here to access our GRI Index.

Since our founding nearly 125 years ago, McGraw-Hill has been at the forefront of good corporate citizenship in every community and every time zone where we do business. That commitment is deeply rooted in our history and has long become a part of our company’s DNA.

One sees it today in our dedication to our employees’ well-being and our drive to improve the quality of life where we live and work. It’s in our environmental stewardship where we’re undertaking numerous initiatives large and small. It’s in our responsibility to multiple stakeholders and how we ethically conduct our business on a daily basis.

Our commitment has not wavered—and 2011 was no exception. Last year’s progress reflects the hard work of our dedicated employees at the grassroots level in many areas, including advancing employee engagement through our green teams and strengthening our supply chain practices with a new supplier code of conduct.

We expanded our financial literacy programs to serve more children and military families as well as brought new sustainability products and services to market and constructed a solar field that will reduce our overall carbon emissions by nearly 10%—the environmental equivalent of taking 2,500 cars off the road.

Finally, last year, we also made progress on a different front by announcing the creation of two powerful new companies. McGraw-Hill Financial will be a leader in content and analytics for the global capital and commodities markets. McGraw-Hill Education will be leading the digital transformation in education with customized and adaptive solutions to improve outcomes for students and professionals alike.

Our commitment to corporate responsibility and sustainability continues, with McGraw-Hill Financial and McGraw-Hill Education each beginning new chapters with bright futures ahead. We’re fulfilling a promise made at our founding more than a century ago setting an example in corporate responsibility worthy of emulation—now and in the future.

Sincerely,

Harold McGraw III

Chairman, President and CEO

What makes a company responsible? At McGraw-Hill, we believe it is a commitment to transparency, integrity and sustainability. These core values guide all of our efforts whether it is our unwavering commitment to creating shareholder value, our dedication to protecting the environment, or our pledge to contribute in meaningful ways to society at large.

We prepare individuals, societies and markets for succeeding in the knowledge economy. In support of this mission we are committed to responsible business practices that enhance the economic, social and environmental well-being of the communities where we work and live.

Our ongoing commitment to corporate responsibility and sustainability is seen in many ways around our company. We’re deeply proud of these efforts, which include:

• Developing a wide array of products and services to serve the growing sustainability marketplace
• Green Teams and other employee engagement activities that are helping to reduce our environmental footprint
• Driving sustainability through operations—from our facilities to our supply chain
• Innovative grant making focused on financial capability for all

These efforts speak to much more than our bottom line; they speak to who we are.

McGraw-Hill is committed to soliciting feedback from all of its stakeholders. We periodically engage with stakeholders—including policy makers, nongovernmental organizations (NGOs), academic institutions, employees and others with an interest in our company—to gain insight into key corporate responsibility and sustainability issues and how they pertain to the Corporation. This feedback, together with our work every day, helps us determine the issues most material to our business.

We also engage with global corporate responsibility organizations. Recognizing that our business exists only in the context of a highly functioning and sophisticated economy and society, we engage in partnerships with other companies, NGOs and governments to achieve mutual goals of sustainability and transparency. These partnerships allow us to learn and contribute our knowledge to the larger discussion on corporate responsibility. Some groups that we actively engage with include:

• Business for Social Responsibility (BSR)
• Boston College Center for Corporate Citizenship
• Business Roundtable’s S.E.E. (Social, Environment and the Economy) Change Initiative
• Sustainable Leadership Forum

We hope you find this report informative and engaging. We welcome any suggestions and comments. Please contact us at: crs@mcgraw-hill.com