Environment

At McGraw-Hill, environmental responsibility is an integral part of our overall corporate citizenship. As such, we strive to minimize our environmental footprint by closely monitoring and developing strategies to reduce the impacts of our operations and our office facilities.

We have three policies that set the environmental standards we expect from our employees and business partners:

• Corporate Environmental Policy
• Paper Procurement Policy
• Corporate Real Estate Policy

Our environmental impacts include greenhouse gas emissions (from energy used in buildings and for transport), water use, and waste (mainly from offices). In 2009, we established baseline data from 2008 for these impacts. Our Environmental Action Committee (EAC), part of our Corporate Responsibility and Sustainability Committee (CRSC), is charged with addressing our climate change and emissions reduction efforts, and establishing and monitoring the Corporation’s Sustainability Strategy.

Our environmental management system outlines our approach to environmental responsibility by identifying our impacts, communicating our policies and establishing targets and the strategies needed to achieve them. The key elements of McGraw-Hill’s environmental management system include:

• Environmental Impacts—identifying the environmental effects of the Corporation’s operations.
• Environmental Policies—communicating the Corporation’s commitment to the environment.
• Implementation Structure and Senior Management Responsibilities—the roles and responsibilities of senior management related to environmental policies, plans and the Corporation’s performance.
• Environmental Targets and Sustainability Strategy—establishing short, medium and long-term environmental goals of the Corporation and the strategies and actions needed to achieve these targets.
• Monitoring and Verification—collecting, monitoring and reporting environmental performance data.
• Communication and Feedback—communicating internally and externally our environmental policies and practices.

In early 2009, we developed 2015 environmental performance targets, using a 2008 baseline, to reduce the environmental impact of our operations over time. Due to the separation of McGraw-Hill into two new companies we will not be presenting our environmental performance trends against our previously established 2015 targets. However, we are reporting our 2011 environmental performance below. Following the completion of the separation we will re-evaluate our overall Environmental Sustainability Strategy that we anticipate completing by 2013. We envision our strategy to include but not be limited to:

• An adjustment of our strategic environmental focus areas
• Establishment of a new environmental performance baseline metric
• Assessment of the applicability of our current strategy action plan
• Formulation of new environmental performance goals and targets

The 2011 inventory is the fourth annual quantification of McGraw-Hill’s environmental performance. Together with the reporting of the 2010 inventory, the environmental performance inventories for 2010, 2009 and 2008 (baseline) have been restated as a result of:

• The availability of higher quality and more accurate real estate (facility) data, including facility openings and closures
• Inclusion of updates to the domestic and international emissions factors used to quantify our greenhouse gas emissions
• Adjustments to operational boundaries to account for acquisitions and divestitures

The table below includes the updated performance data for 2008, 2009, and 2010.

McGraw-Hill Environmental Performance 2008-2011

Our continued focus on increasing the effectiveness and efficiency of our facility portfolio has helped decrease our environmental footprint. From 2010 to 2011 our energy usage and greenhouse gas emissions decreased while the intensity of greenhouse gas emissions increased across our facility portfolio.

In addition, we have continued to focus on our initiative to reduce waste to landfill by expanding our recycling efforts, resulting in improvements for these metrics over the last year.