Purpose Growing with - SUSTAINABILITY REPORT 2020 - Kelly Services
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TABLE OF CONTENTS TABLE OF CONTENTS INTRODUCTION 3 ENVIRONMENTAL 18 Engagement 47 Environment 20 Social investment programs 47 Message from our President and CEO 4 Carbon emissions and climate mitigation 20 Business continuity and risk management 51 About Kelly Services 5 Kelly Relief Fund 52 Energy efficiency 21 Our values 6 Water consumption 22 Our five specialties 7 Waste management 22 Kelly by the numbers 8 Occupational health & safety 23 GOVERNANCE 53 Mergers, acquisitions, investments, and divestitures 9 Employees 23 Ethics and business conduct 55 Global coverage and value chain 9 Customers 23 Governance structure 55 Recognition 10 Our safety leadership journey in the industry 24 Code of Business Conduct and Ethics 57 Our response to COVID-19 25 Privacy and data protection 58 CORPORATE SUSTAINABILITY Communication and reporting 59 AT KELLY SERVICES 11 Internal communications 59 Message from our Corporate Sustainability Lead 12 SOCIAL 27 External communications-sustainability standards 59 Employees and people 29 Transparency and integrity line 59 Corporate Sustainability Strategy 14 Kelly supports the UN Sustainable 15 Our people 29 Development Goals (SDGs) Equity@Work 33 Stakeholder engagement and materiality 16 Inclusion and diversity 36 ABOUT THIS REPORT 60 Human rights 42 Supply chain and customer relations 43 Our supply chain 43 ESG DATA TABLE 62 Supplier engagement and performance management 44 Supplier risk management 44 Supplier Code of Conduct 46 NOTE: This report covers the 2020 fiscal year from January 1, 2020 to December 31, 2020. We may include data and information noted from the 2019 fiscal year. 2 / SUSTAINABILITY REPORT 2020
INTRODUCTION Message from our President and CEO About Kelly Services Our values Our five specialties Kelly by the numbers Mergers, acquisitions, investments, and divestitures Global coverage and value chain Recognition 3 / SUSTAINABILITY REPORT 2020
INTRODUCTION / MESSAGE FROM OUR PRESIDENT & CEO MESSAGE FROM OUR PRESIDENT AND CEO 2020 was one of the most challenging years in memory for many of us. The COVID-19 and we’re seeing results. Our scores on several external assessments and audits measuring crisis and continued racial inequities in our society weighed heavily on people sustainability are sequentially improving each year, and we continue to reach for further everywhere, both personally and professionally. progress in the future. A 2021 marks Kelly’s 75th year in business, t Kelly, the experiences of 2020 guided by a clear set of crisis principles meaningful dent in the many long-standing and it’s a year we’re focused on pursuing renewed our already strong passion that we developed at the onset of the injustices that hold back far too many people our strategy as a specialty talent company for our purpose of connecting pandemic. The number one guiding from upward mobility — disproportionately while advancing diversity, equity and people to work in ways that enrich their lives principle is protecting the health and safety people of color. inclusion both within Kelly and in and reminded us of just how important it of our people, including our employees Governance (Ethics and Business society at large. Thank you for joining is for us to fulfill our purpose in a way that on assignment and our full-time staff. Conduct; Communication and us as we grow with purpose. creates positive, lasting change for people We quickly transitioned to a remote work Reporting): Operating with integrity and and our planet. environment for employees able to conduct doing the right thing has been the Kelly their assignments remotely. And for those of Our ongoing sustainability approach at Kelly us on the front lines, we adhere to science- way since our founding. Our board of Peter W. Quigley continues to be closely tied to our purpose directors, responsible for leading effective Peter W. Quigley based mitigation strategies carefully — a strategic program clearly focused on governance at Kelly, is inclusive: 44% of the President and Chief Executive Officer recommended by our cross-functional positive environmental and social impact board is comprised of women or ethnically Emergency Management Team. within an effectively governed framework diverse members. And in 2020, each of our based on integrity and ethics. Social (Employees and People; Supply board committees — Audit; Compensation Chain and Customer Relations; & Talent Management; and Corporate As a leader and person, I’ve found it helpful Engagement): As a talent company, we Governance and Nominating — became to reflect on some of the silver linings from believe we can and should do more to fully independent. the past year, and our continued progress on champion for those who aren’t given a fair our Environmental, Social and Governance This report provides additional details opportunity to secure meaningful work. (ESG) goals within our sustainability strategy about what Kelly has accomplished on In 2020, we launched our Equity@Work is one of them. I’ll take a moment to share a our sustainability journey thus far. Part of initiative that sets a course to upend systemic single highlight from each ESG area: the path toward continual improvement is barriers to employment and make the labor aligning our initiatives to the principles of the Environmental (Occupational Health market more equitable and accessible. UN Global Compact. We’re pleased to sign & Safety and Environment): Kelly’s We’re energized by the incredible interest and support this collaborative global effort actions during COVID-19 have been in this platform and will apply sustained, now adopted across nearly 200 countries, ongoing effort over the long-term to make a 4 / SUSTAINABILITY REPORT 2020
INTRODUCTION / ABOUT KELLY SERVICES WE CONNECT PEOPLE TO WORK IN WAYS THAT ENRICH THEIR LIVES. As founder of the staffing industry, Kelly has been connecting great companies and great people for more than seven decades. S mall and large businesses alike trust our expertise in providing solutions that span the spectrum of specialty staffing, outsourcing, and consulting. We’re always thinking about what is next in the evolving world of work, and we help people adopt new ways of thinking while embracing the value of all styles of work. We have progressed from a traditional office staffing company into a workforce solutions leader, delivering expertise in a portfolio of specialty services. As talent management has become more complex, we have developed innovative solutions to help many of the world’s largest companies plan for and manage their workforce through outsourcing, consulting, recruitment, talent advisory, career transition, and supplier management services. We offer innovative outsourcing and consulting services, as well as staffing on a temporary, temporary- to-hire, and direct-hire basis. We also provide a suite of talent fulfillment and outcome-based solutions, delivering integrated talent solutions on a global basis. In doing so, we enable companies to access skilled talent that can move their businesses forward. 5 / SUSTAINABILITY REPORT 2020
INTRODUCTION / OUR VALUES OUR VALUES OUR VISION To be the most creative, insightful, and agile talent OUR NOBLE PURPOSE company, committed to uniting vital talent with great We connect people to work in ways that enrich their lives. organizations where, together, we thrive. Our values are built upon a tradition of integrity, quality, and service excellence, which EMPLOY A RELENTLESSLY GROW THROUGH ACT LIKE TALENT-FIRST DELIVER FOR DISCIPLINE OWNERS are keys to longstanding MENTALITY CUSTOMERS AND FOCUS Inspire efficiency and relationships we create with Consistently consider What’s Build trusted relationships Manage the company as a effectiveness in all that we do. Fiercely protect Next for our talent (both those with our customers by portfolio of businesses, each customers, employees, we place and those who are demonstrating depth of defined by clear strategies the capital that will be direct employees of Kelly). necessary to continue suppliers, and the communities Be their advocate always, expertise and solving for their most complex and measurable targets that drive prioritization of investing in Kelly’s future. in which we live and work. and in ALL ways. talent needs. resources throughout Kelly. W e are personally responsible for our actions, WE ACT WITH WE ARE OBSESSED WE KNOW outcomes, and reputation. URGENCY AND AGILITY WITH GROWTH WHO WE ARE W e build strong relationships and create Kelly Speed is key, and so we favor practicality We are relentlessly driven toward profitable We are committed to integrity and ethics, advocates for life. over perfection. We flex and adapt growth; it is each of our responsibility to doing what’s right for our talent, living our quickly to changes, both externally grow the business, our skills and the noble purpose and courageously holding W e own and resolve customer and candidate issues and internally. careers of ourselves and others. each other accountable. with urgency. W e treat every customer, employee, and supplier with respect and integrity. WE COLOR OUTSIDE WE WIN THROUGH WE EXECUTE WITH THE LINES OUR PEOPLE CONVICTION W e continuously seek opportunities to innovate and improve the Kelly experience. We are fearlessly forward-looking, unafraid We strive to build diverse, We are decisive and take intelligent to upset industry norms, and willing to high-performing teams who are risks, rooted in process and bring forward bold, innovative and creative wired to perform at their best. data-driven decision-making. ideas at all levels of the organization. 6 / SUSTAINABILITY REPORT 2020
INTRODUCTION / OUR FIVE SPECIALTIES Bringing our specialty vision to life. OUR FIVE KELLY SCIENCE, Building on more than seven decades of industry leadership, it’s even more SPECIALTIES PROFESSIONAL ENGINEERING, OPERATING & INDUSTRIAL TECHNOLOGY & important right now to sharpen MODEL TELECOM Kelly’s focus on specialty talent and customer needs. The modern workforce is more empowered and mobile than ever, requiring EDUCATION KELLY OCG INTERNATIONAL an equally responsive and agile talent partner. O ur business strategy is focused on five business PROFESSIONAL SCIENCE, EDUCATION KELLY OCG INTERNATIONAL units organized around specialties that will & INDUSTRIAL ENGINEERING, Talent Specialties Managed Service Talent Specialties unleash our potential to grow and address the Talent Specialties TECHNOLOGY & Substitute Educators Provider (MSP) Local Niche Talent Teacher Placements Contingent Labor Life Science Practice urgent needs of ever-changing market challenges. This Contact Center TELECOM Paraprofessionals Direct Sourcing Creative Talent Specialties Special Education Human Cloud framework allows our leadership to accelerate value while Finance & Accounting Early Childhood Identity Management Industrial Engineering achieving our mission of becoming a specialty talent Technology After-School Programs Independent Contractors Marketing Telecom & Digital Connectivity Adjunct Professors Payroll Outsourcing STAFFING company that delivers results for clients, talent, and Office SOW/RFxManagement OPTIONS Science & Clinical shareholders. KellyConnect® Talent Specialties Temporary Talent Government Solutions Contact Center Outsourcing Non-Instructional Recruitment Process Temporary to Hire Customer Support Managed Business Services Custodial Outsourcing (RPO) Kelly has adopted a technology-enabled delivery model, Direct Hire Technical Support Centralized Admin Solutions Food & Nutrition End-to-End Programs Healthcare Project Hiring Payroll Service where we are positioned to expand our outreach and Remote Agent Computer Aided Design & L ocal/Centralized Customized Programs Drafting Information Technology Modular Programs meet specialty talent wherever they are, connecting Engineering Support Solutions Office Administration Delivery Managed Business Services Talent Advisory Services On-Site Management them more seamlessly to our customers. Functional Service Provider Scope Talent Strategy Centralized Admin Solutions Lab Management Solutions Engineering Support Solutions Pre-K –12 Governance Field Services Field Services Early Childhood Workforce Research Manufacturing & Logistics Manufacturing & Logistics Higher Education Career Transition Solutions Solutions Executive Coaching Project Services Technical Writing Integrated Talent Solutions Total Talent Solutions Guided Work™ 7 / SUSTAINABILITY REPORT 2020
INTRODUCTION / KELLY BY THE NUMBERS KELLY BY THE NUMBERS Worldwide coverage in Leading staffing provider Delivering staffing, outsourcing, 51 countries in targeted U.S. specialties. and advisory services across Americas, (with the ability to support KellyOCG MSP EMEA and APAC. programs in 8 additional countries) 2020 revenue of Principal provider of K-12 Supported by 4,600+ supplier $4.5 billion educational staffing. partners globally. Gross profit: $827.60 Top 5 scientific, engineering and 90% of Fortune 100™ companies (In millions of USD) office workforce solutions provider use our services. in the U.S. Kelly has approximately 7,100 Leading managed services provider Helping people adopt new corporate employees worldwide. with $8.9 billion spend under ways of thinking. management. 8 / SUSTAINABILITY REPORT 2020
INTRODUCTION / MERGERS, ACQUISITIONS, INVESTMENTS, AND DIVESTITURES MERGERS, ACQUISITIONS, GLOBAL COVERAGE AND VALUE CHAIN INVESTMENTS, AND Our value chain consists of two categories: talent supply chain services and third-party vendors and suppliers. Our talent supply chain offers workforce solutions for suppliers, mainly through Managed Service Providers (MSP), DIVESTITURES while also supporting Staffing Solutions, Recruitment Process Outsourcing (RPO/Perm) solutions, and Business and Professional Services (BPS). Up to one percent of our supply chain enables a wide variety of solutions — the majority once again are MSP. Acquisitions I n January 2020, Kelly acquired Insight Workforce Solutions LLC KELLY GLOBAL FOOTPRINT (“Insight”), an educational staffing company, to help expand our Americas EMEA APAC* leadership position in the U.S. educational talent solutions industry. Argentina ● ● Angola ● Libya ● Australia ● ● In November 2020, Kelly announced the acquisition of Greenwood/ Brazil ● ● ● Armenia ▲ Lithuania ● British Indian Ocean Territory ▲ Asher & Associates, a premier specialty education executive search firm Canada ● ● ● ● Austria ● Luxembourg ● ● ● China ● ● ● ● based in Miramar Beach, Florida. This acquisition will expand Kelly’s Colombia ● Belgium ● ● ● Netherlands ● ● ● Hong Kong ● ● leadership position beyond K-12 and higher education. Costa Rica ● Croatia ▲ Norway ● ● ● India ● ● ● Mexico Czech Public Oman Japan Investments ● ● ● ● ● ▲ ● Puerto Rico ● ● ● Denmark ● ● ● Poland ● ● ● ● Indonesia ● ● ▲ ● We continue to make investments in technology, particularly those Trinidad & Tobago ● Estonia ● Portugal ● ● ● ● Malaysia ● ● ● ● which support greater efficiency in finding talent to answer customer United States France Russia New Zealand needs. In 2020, we implemented a front office platform in the U.S. and ● ● ● ● ● ● ● ● ● ● ● ● Canada and will be gradually deploying its outreach to other regions. Georgia ● Saudi Arabia ▲ Niue ▲ This platform will streamline the processes and workflows associated Germany ● ● ● ● Spain ● Philippines ● ● with recruiting, onboarding, and reassigning workers. KEY Hungary ● ● ● South Africa ● Singapore ● ● ● ● ● Temporary Staffing Iceland Sweden South Korea In 2019, in order to improve geographic coverage and operations ● Business & Professional Services ● ● ● ● ● ● ● ● Managed Service Provider efficiency, we reorganized the commercial staffing operations that were Iraq ● Switzerland ● ● ● Taiwan ● ● ● ● Recruitment Process Outsourcing delivered by our U.S. branch network. The new structure will allow us to Ireland ● ● ● ● Turkey ▲ Thailand ● ● ● ● ● MSP Current Locations refine our focus on specialties within the commercial staffing portfolio, ▲ MSP Former Locations Israel ● United Arab Emirates ● Vietnam ● ● ● including light industrial, electronic assembly, office professionals, and Italy ● ● ● ● United Kingdom ● ● ● ● *Delivered through PERSOLKELLY Joint Venture partnership with contact center staffing. PERSOL Group 9 / SUSTAINABILITY REPORT 2020
INTRODUCTION / RECOGNITION RECOGNITION Forbes’ list of America’s Best Recruiting International Association of Outsourcing Firms for 2020. Kelly earned the third spot on Professionals (IAOP) 2020. KellyOCG Forbes’ 2020 list of America’s Best Professional was named to the International Association Recruiting Firms. of Outsourcing Professionals 2020 Global Outsourcing 100 List. FlexJobs 2021 “Top 100 Companies for Remote Work” List. Kelly named No. 5 on the Best Use of Online Recruitment by a Top 100 Companies for Remote Jobs list by Recruitment Agency 2020, OnRec. Kelly FlexJobs for 2021. Services recognized by OnRec in London for its recent achievement in supplying staff to a Kelly® named to Staffing Industry Analysts customer using Pixid recruitment technology. (SIA) Largest Global and US Staffing Firms and Largest US Direct-Hire Firms 2020 lists. Great Place to Work® Certification. KellyOCG in India was recognized as one of the Best EcoVadis Silver Supplier Status 2020. Kelly® Workplaces in the country, as certified by the earns Silver Supplier status for business Great Place to Work® Institute through a rigorous sustainability from EcoVadis. work culture assessment process. Leader for Services Procurement by Everest HR Vendor of the Year by Human Resources Group 2020. Everest Group, a top research Online 2020. For the fifth year in a row, KellyOCG analyst in the market, has named KellyOCG a in Singapore received the Gold award for Best Leader for Services Procurement. Recruitment Process Outsourcing Partner. 10 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES Message from our Corporate Sustainability Lead Corporate Sustainability Strategy Kelly supports the UN Sustainable Development Goals (SDGs) Stakeholder engagement and materiality 11 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES / MESSAGE FROM OUR CORPORATE SUSTAINABILITY LEAD Without a doubt, T he health crisis wiped out the sustainable development, even and universal status quo and caused despite the global crisis. us huge setbacks on economic, 2020 represented environmental, social, and humanitarian In the current context in which post- issues. In this context, corporate pandemic reconstruction is at the one of the most responsibility, integrity, and sustainability center of the debate, the role of private companies is essential to recover the were challenged like never before, challenging and positioning private companies as a path towards a balanced coexistence between the people, resources, and generator of well-being and demanding services that we consume. uncertain years their solidarity and response capacity in the face of the global pandemic. The good news is that we have solid humanity has Additionally, the social unrest caused by increased inequalities, racism and strategies and guidelines to maintain our commitment to sustainable discrimination have made 2020 a year to ever faced. redesign ourselves more than ever. development and the SDGs. Today, we reaffirm our corporate ethics because we In this new reality, maintaining good are certain that a new world is not only practices related to our sustainability possible but essential for development and corporate social responsibility and continuity. Through the challenges strategy was an immense challenge of the year, we continued to push for the company and also needed through and work responsibly and more than ever. It is precisely for that sustainably. 2020 is a year to be proud Belen Benitez reason, Kelly’s efforts must be valued of Kelly and our efforts. Belen Benitez more than in past years, as they also Corporate Sustainability Lead, We invite you to reaffirm and strengthen guarantee our employees, shareholders, Kelly Services your commitment to sustainable stakeholders and community in general, development, together with us and learn the transparency in our work and through our 2020 Sustainability Report the continuity of our commitment to how we work and thrive. 12 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES CORPORATE SUSTAINABILITY AT KELLY SERVICES Sustainability is a guiding principle for our operation which drives our relationship with our global workforce, suppliers, and customers. GOVERNANCE ENVIRONMENTAL A s a leading global workforce outreach and impact, incorporating an In early 2019, we adhered to the principles Communication Occupational Health and Reporting & Safety and solution provider, our sustainability interdisciplinary perspective. We also of the United Nations Global Compact Environment strategy embodies our mission of aim to guide our worldwide subsidiaries to report on our commitment to the connecting people to work opportunities and collaborators in planning, managing, United Nations Sustainable Development that enrich their lives, making a difference and implementing responsible and Goals. Kelly also participates in external in the communities in which we live and sustainable business practices for assessments such as EcoVadis, CDP, CORPORATE work, and strengthening our relationship creating meaningful and impactful Human Right Campaign Foundation’s SUSTAINABILITY with our stakeholders … where together shared value for all stakeholders. Corporate Equality Index (CEI), GOVERNANCE we thrive. Responsible Business Alliance (RBA), Ethics and COMMITMENTS SOCIAL Given the global outreach of our and ISS Corporate Solutions (ICS). These Business BUILT AROUND Employees Kelly’s approach to sustainability falls into business, we take public accountability platforms provide us an opportunity to Conduct SIX PILLARS and People three main categories: Environmental, seriously. Our sustainability strategy analyze our performance and identify Social, and Governance. It is strategically is supervised by the sustainability enhancement opportunities, while built upon six key pillars that are aligned governance committee, which is providing a consistent and transparent to the United Nations Sustainable represented by executive leaders and measurement for the impact of our Development Goals (SDGs). As we overseen by the Board of Directors. sustainability strategy. continue developing and monitoring our SOCIAL Since 2018, Kelly has adopted Supply Chain sustainability strategy, we work closely SOCIAL international sustainability reporting and Customer with cross-functional areas to assess our Relations Engagement standards to communicate performance1. 1 The content of this report is informed by the Global Reporting Initiative Standards (GRI), The Sustainability Accounting Standards Board’s (SASB), and the U.N Global Compact. 13 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES / CORPORATE SUSTAINABILITY STRATEGY CORPORATE SUSTAINABILITY STRATEGY OUR MISSION Connect people to meaningful employment opportunities and make a difference in the communities in which we live and work OUR ENVIRONMENTAL SOCIAL GOVERNANCE APPROACH OUR Occupational Health & Safety Employees and People Supply Chain and Engagement Ethics and Communication PILLARS and Environment Customer Relations Business Conduct and Reporting Talent Attraction Supplier Risk OH&S; Employees and Customers Social Investments Governance Internal Communications and Retention Management Inclusion OUR GHG emissions and energy efficiency and Equity Supplier Diversity Engage Program Code of Business External communications @Work Conduct and Ethics and sustainability standards INITIATIVES Diversity Supplier Code Privacy and Data Transparency Resource Conservation Human Rights Business Continuity of Conduct Protection and Integrity Line OUR Global Policies, Standards and Scope Stakeholder Engagement Communication, Evaluation and Reporting FUNDAMENTALS OUR SDGs 14 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES / KELLY SUPPORTS THE UN SUSTAINABLE DEVELOPMENT GOALS KELLY SUPPORTS THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS The United Nations Sustainable Development Goals Our commitment to contributing to the UN Sustainable (SDGs) represent the world’s pressing challenges for Development Goals is more relevant than ever. Since the planet and its people by 2030. It represents a 2019, Kelly Services has adhered to the Ten Principles of collaborative global effort, setting 17 global goals and the Global Compact, and has regularly communicated its 189 targets to reduce inequality, end poverty, combat progress toward these principles. We are committed to climate change, and contribute to a sustainable, making these principles part of our strategy and business peaceful, and thriving future. Despite its adoption by 193 culture. We have also aligned our Corporate Sustainability countries as well as significant progress that has been Strategy to 6 SDGs and have conducted a self-assessment made on reducing poverty in some countries around the analysis in order to identify opportunities to contribute world in recent decades, both climate change and the toward the achievement of these goals. In 2021, we will coronavirus pandemic have threatened this progress release our revised Human Rights policy, and freedom of and have increased the worldwide gaps that the SDGs association commitment, and will adopt measurement are intended to address. indicators to assess our contribution toward these goals. Our commitment to contributing to the United Nations Sustainable Development Goals is more relevant than ever. Since 2019, Kelly Services has adhered to the Ten Principles of the Global Compact, and has regularly communicated its progress toward these principles. 15 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES / STAKEHOLDER ENGAGEMENT AND MATERIALITY STAKEHOLDER ENGAGEMENT MEMBERSHIPS AND EXTERNAL AND MATERIALITY ENGAGEMENT We continually engage with our stakeholders in order to better understand their concerns, Community and non- enabling us to deliver a more effective and valuable Corporate Sustainability Strategy. In addition governmental organizations 1. SOCIAL IMPACT PARTNERS to engaging with our stakeholders through a variety of initiatives and activities directed toward Kelly has a tradition of giving back and 2. E XTERNAL INSTITUTIONS AND MEMBERSHIPS our customers, suppliers, and communities where our offices are located, we conduct a formal engaging employees in causes that have materiality assessment every two years in order to identify and prioritize our response to the issues American Staffing Association Nasdaq Annual Report a social impact which empowers them of greatest relevance to both our internal and external stakeholders. We expect to conduct our (ASA) OSHA temporary worker to be leaders for change within their second materiality assessment in the second semester of 2021. communities. We have developed local Business Leaders for Michigan initiative partnerships to provide volunteering CDP Responsible Business Alliance Key Stakeholders the highest level of business ethics and opportunities for our employees as well CEO Action for Diversity (RBA) operational standards across the worldwide Kelly leadership and employees as contributing financially to social causes and Inclusion Society of Human Resource Kelly network. Our suppliers are a critical part aligned to the core values of our business. Corporate Equality Index — Management Foundation We maintain continuous engagement with of our organization who enable the placement our employees through two main channels: Human Rights Campaign The World Employment of third-party labor for our customers in a Shareholders Kelly Intranet and Automated Virtual variety of specialty services. We strive to (HRC) Foundation Confederation-WEC We engage with our investment Assistant system. Our company Intranet guarantee compliance with our Code of Detroit Regional Talent The Conference Board community through direct meetings, facilitates the sharing of and access to Conduct by our suppliers and the promotion Compact UK Modern Slavery annual reports, financial statements, and information, connecting different work teams of these standards within their supply chains. EcoVadis Transparency Act Statement investor conferences. with employee affinity groups, upcoming Government and regulators General Data Protection UN Global Compact events, as well as topics that are trending in Industry associations Regulation the company, and the industry. Our portals U.S. Americans with We advocate for public policy issues We engage with industry associations, include Kelly News; Industry News, and a IPSE — U.S. Disabilities Act U.S. Foreign that are significant to our business actively participating in staffing-industry message from leadership that communicates Lumina Foundation Corrupt Practices Act and our ability to serve our customers events and meetings in order to exchange information from top management to all and workforce. We actively monitor information on best practices, raising employees, along with need-to-know new employment as well as labor laws standards within the industry, identifying messages that provide the latest information and regulations that are proposed or trends and opportunities within the on policies, best practices, and initiatives. adopted at the local level which may industry while advocating for policy issues increase employers’ potential exposure that are significant to our business. Partners and suppliers to employment-related claims within our Our KellyOCG team works closely with worldwide network. our customers and suppliers to ensure 16 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES / STAKEHOLDER ENGAGEMENT AND MATERIALITY Materiality Our materiality assessment analyzed an exhaustive list of sustainability issues MATERIALITY The materiality matrix was revised in order that cover all aspects of our business, Employees and to define the six principles that guide our taking into consideration ESG issues Communication working conditinos related to external standards such as GRI, and Reporting Corporate Sustainability Strategy and the ///////// STAKEHOLDERS' EXPECTATIONS content of its reporting. The six pillars are EcoVadis Assessment, CDP, Sustainable Market Development Goals, UN Guiding Engagement: community presence defined as follows: outreach and social impact Principles of Human Rights, UN Global 1. Employees and people Compact, and the World Employment Customer relations 2. Ethics and business conduct Confederation. In this process, we identify and supply chain Environmental 3. Engagement stakeholders’ expectations and prioritize impact the most relevant topics on which we 4. O ccupational health & safety and established our strategy. environment Human rights 5. Supply chain and customer relations 6. Communication and reporting Ethics and business conduct Grievance mechanism Orgainzational health and safety ///////// BUSINESS IMPORTANCE 17 / SUSTAINABILITY REPORT 2020
ENVIRONMENTAL Environment Carbon emissions and climate mitigation Energy efficiency Water consumption Waste management Occupational health & safety Employees Customers Our safety leadership journey in the industry Our response to COVID-19 Our sustainability strategy supports the following SDGs: 18 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES / ENVIRONMENTAL KEY MILESTONES We have reduced our corporate Scope 3 emissions from Our Kelly Anywhere platform campus building’s carbon employee business travel fell to allowed employees to transition footprint by 26% over the last 682 metric tons of CO2e due to to remote working rapidly and 7 years. global COVID-19 travel restrictions. effectively, ensuring business This represented a 75% reduction continuity as well as the health and from last year. safety of our employees during the response to COVID-19. Between 2013 and 2020, energy consumption in our offices has decreased by 19%. We held our first virtual carbon neutral event, where we avoided an estimated 28 tons of CO2 We deployed our Emergency emissions into the atmosphere and Management Team to rapidly engaged our suppliers and internal respond to the COVID-19 pandemic. Scope 1 direct emissions from network to plant 3,200+ trees in natural gas accounted for 762 metric Sydney, supporting local reforestation tons of CO2e, remaining consistent initiatives from Australia wildfires. with last year’s emissions. Scope 2 indirect emissions 70.13 tons of waste was recycled Our Absolute Zero program from the purchase of electricity in our in our corporate campus. recorded the lowest recordable operations accounted for 4,149 metric incident rate in our history. tons of CO2e, reduced by 17% from emissions last year. 19 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES / ENVIRONMENTAL ENVIRONMENT Kelly is committed to protecting and maintaining our planet for future generations. We have a responsibility to properly We report our environmental impact Scope 1 and 2: Direct and Indirect metrics for employee commuting, and will manage the environmental footprint of metrics following the CDP climate change GHG emissions will co-manage our emission reductions in our operations, drive energy efficiency disclosure, regarding measurements of In 2020, our GHG emissions in Scope 2 and collaboration with the new facility owner. across operational offices, and promote energy usage, GHG emissions of direct and Scope 3 were reduced significantly due to internal practices that foster a culture of indirect operations, Scope 1 and 2, as well Scope 3: GHG emissions COVID-19 disruptions that forced employees from business travel preservation, conservation, and waste as Scope 3 emissions from air and rail travel to work from home and stop business travels. reduction. of employees. Our Scope 3 emissions are calculated Our baseline emissions from Direct- from business travels made by employees Scope 1 GHG from stationary combustion via air and rail in global operations. In Global GHG Emmisions by Scope (MT CO2e) have been estimated at 700 MTCO2e in 2020, Scope 3 emissions accounted for Carbon emissions and 2017. Our goal has been to not exceed this 682 MTCO2e, which represents a reduction climate mitigation 7,000 baseline target. Still, in 2020, our Scope 1 of 75% from 2019. Air travel emissions 6,000 Our climate action is focused on reducing 5,722 emissions accounted for 762 MTCO2e. accounted for 681 MTCO2e and rail the greenhouse gas emissions associated 5,000 4,994 Our Indirect Scope 2 emissions, associated emissions 0.591 MTCO2e. with our operations as well as prioritizing with energy purchases used to power our 4,149 offices, have been estimated at a baseline Kelly has implemented the Rocketrip energy efficiency in our Corporate 4,000 5,400 MTCO2e in 2017 have decreased to Travel Rewards Program as a corporate Headquarters; adopting green building 2,962 3,000 2,749 4,149 MTCO2e during 2020. benefit initiative for U.S. and Puerto Rico procedures in our facilities; and supporting full-time employees, to promote and our customers in understanding and 2,000 In December 2019, we sold our Lindsey reward smart business travel decisions. adopting their own environmental 1,000 899 and Annex buildings at the headquarters Employees can earn Rocketrip points by sustainability goals. Our impact on carbon 771 762 682 campus, entering into a definitive choosing less expensive flights, staying reduction has been impactful. Over 0 2018 2019 2020 agreement to sell and lease back our with a friend, increasing online meetings, the last 7 years, we reduced our direct Scope 1 Scope 2 Scope 3 Corporate Headquarters in Troy for the and others. This program is expected to environmental footprint by 26%. next 15 years. In 2021, we will adjust our continue guiding employees on making greenhouse gas emission targets to our smart choices in travel once they return to new facilities, including GHG emission business as usual. 20 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES / ENVIRONMENTAL Energy efficiency and adopt energy-efficient green-building solutions. Energy Usage Index (EUI) per Building by Year Kelly measures energy consumption based 200,000 on the electricity and natural gas used for Since 2013, we have reduced energy operations at the corporate campus in Troy, consumption in our headquarters campus Michigan. Although 2020 energy usage by 19 percent. This reduction has been 150,000 decreased due to COVID-19 restrictions partly due to IT services’ transition from on working from our offices and the selling on-premise to cloud technology and the of two of our corporate buildings, our adoption of green building standards 100,000 efforts to operate in more environmentally and technologies that reduce our friendly office spaces have helped us find environmental impact. 50,000 0 Headquarters Annex Kirts Lindsey 2013 2014 2015 2016 2017 2018 2019 2020 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Headquarters Annex Kirts Lindsey 0 We measure our energy efficiency based on the Energy Usage Index (EUI) which measures the energy consumed per building per year, rather than its total dollar cost. This metric takes the different types of energy used by the building per square foot and considers occupant’s habits, building energy efficiency technologies, tightness of the building’s outer surface, and local weather. 50,000 Kelly 100,000 Anywhere: Kelly’s adoption of working every day at the office. Other information technology systems and environmental benefits are related to people policies for employees seeking consistent using less paper and printing services. and flexible remote work arrangements have 150,000 enabled the successful adoption of the Kelly The program has turned out to be extremely Anywhere program. Although we have not beneficial during 2020, as the majority of 200,000 estimated the environmental footprint for our workers — previously enrolled or not working remotely, we estimate that pollution into the Kelly Anywhere program — have from employee commuting, traffic, and been able to perform nearly all essential 250,000 energy usage to power the lighting and functions remotely. As part of our response other equipment in our corporate campus to COVID-19, we have worked with some are significantly reduced with fewer people customers to implement remote work plans — when possible — for temporary employees. 21 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES / ENVIRONMENTAL Water consumption Waste management ● W e have adopted a hardware disposal policy and procedures for the proper ● I n partnership with vendors, Kelly has implemented standardized procedures We only use water in our offices for Kelly provides office-based operations disposal of electronic waste (e-waste) for proper separation and recycling of domestic purposes, landscape irrigation, in which waste is mainly generated throughout our operations. The creation of IT assets and equipment2. We also work and operational processes. Although we from the use of paper and other a recycling center at our corporate campus with our vendor, Staples, to reuse and are not a water-intensive user, we have office-related activities. In 2020, we guarantees the final disposition of electronic guarantee the final disposition of toner adopted green building practices to recycled 70.13 tons of materials from our equipment, including phones, batteries, cartridges from printers and copiers in minimize the amount of water usage in corporate campus and have continued cables, PCs, laptops, and other items. our office buildings. our everyday operations by implementing implementing recycling initiatives to ● W e have implemented responsible water conservation practices. reduce our waste impact: procurement guidelines for the ● I n the HQ offices, we installed smart- acquisition and use of office products sensor and low-flow fixtures in faucets made from 100-percent recycled and toilets. OUR FIRST CARBON NEUTRAL EVENT. content and environmentally friendly ● O utside our campus, we use controlled Due to COVID-19 global restrictions on business materials. irrigation systems that reduce water use travels, we decided to conduct our 25th Supplier ● I n 2020, our corporate campus recycled and have impermeable brick pavers to Awards event virtually, extending the invitation to 125,235 lbs. of waste through the Shred- mitigate stormwater runoff. our global network of suppliers. This virtual event it program. According to the Shred-it ● O ur external gardens feature grass and avoided the addition of an estimated 28 tons of program, this recycling initiative saved plants that consume less water, requiring CO2 emissions to the environment. The event 188 cubic yards of landfill space and less irrigation during the summer, and received generous donations from our Kelly 250,470 Kilowatts of energy and helped allowing more growth in the spring. internal stakeholder and supplier partners for preserve approximately 1,000+ trees, planting over 3,200 trees in Sydney, Australia thus helping to balance gas emissions in ● I n 2020, the Shred-it program in support of local reforestation initiatives in the the atmosphere. contributed to saving approximately wake of the devastating wildfires of 2020, more 438,323 gallons of water. According to than doubling our goal. Shred-it, each ton of recycled paper reduces water demand by 58 percent, We chose One Tree Planted as the organization to support this initiative in the New which also reduces air pollution South Wales area due to the devastation of the wildfires, following our first supplier and the need for lumber and other forum in Sydney in October 2019. We decided to introduce this initiative to our manufacturing resources. suppliers during the award event. The response was incredible, helping us to surpass our initial goal of planting 1,325 trees as a carbon offset to compensate for carbon 2 endors are responsible for deleting information from machines in V Kelly does not currently track water emissions from the event. order to remarket the devices or ensure the final environmentally withdrawals or recycled and reused water in friendly disposal of assets and all their components. its campus facilities. 22 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES / ENVIRONMENTAL OCCUPATIONAL HEALTH AND SAFETY As a global workforce solutions provider, our standards. Our safety handbook and safety DART – Days away restricted and transferred rate Incidence per 200,000 work hours human capital is our most important asset. orientation program are critical elements 2.5 We are committed to the highest standards for all new employees. We also conduct Staffing Industry Average* Kelly Services Employees of safe and healthful working conditions regular training to support employees in 2.0 in order to guarantee our employees zero becoming familiar with customer’s workplace accidents or occupational hazards. Employee environments, safe work practices, emergency 1.5 safety has been an integral part of our culture procedures, protective equipment, while and a key to our continued success with our reporting safety issues and near misses in a 1.0 customers and our global workforce. timely fashion to on-site management. 0.5 Employees 0.0 Customers 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Our Absolute Zero program provides a Our health and safety workplace commitment framework for operating under the highest TRIR – Total recordable incidence rate Incidence per 200,000 work hours extends to our customers. Kelly’s Global Safety safety standards and proactive initiatives in order and Health Program ensures our highest 2.5 to identify, mitigate, and prevent occupational safety standards in customer’s workplaces. Staffing Industry Average* Kelly Services Employees illnesses and injuries at workplaces. The Kelly It provides pre-assignment risk assessment, 2.0 Safety Team leads this program through worker training, and analysis of incident reports 1.5 internal processes, training, and companywide in order to assess customers’ commitment guidelines that go beyond ensuring to safety standards. This program provides 1.0 compliance with health and safety legislation practical recommendations for determining while monitoring our promise of maintaining what conditions may exist in the workplace, 0.5 excellence in our safety standards, solidifying which hazards may be encountered, preparing our commitment to zero accidents, zero injuries, employees to complete their work while 0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 and zero harm. Our safety standards are aligned following safety and health protections. All *2020 BLS staffing industry average not available at time of printing. with the ISO 45001 and OSHA standard. customers are assessed prior to servicing The Global Safety and Health Program is aligned with Occupational Health and Safety Assessment (OHSAS Across our operations, managers, employees, and are regularly monitored through our 18001) and is analyzed in accordance with two measurements: Total Recordable Incident Rate (TRIR), and and customers are accountable and performance evaluation metrics and safety Days Away Restricted and Transferred (DART) rate. This program also leads a Health & Safety committee in which our temporary employees actively participate. responsible for understanding, leading, and committees. Temporary workers receive upholding our commitment to our safety general safety guidelines from Kelly and site- specific safety training from our customers. 23 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES / ENVIRONMENTAL Our safety leadership Kelly participated Participation in the Kelly achieved the mark Kelly adopted a journey in the industry in the development and implementation OSHA Temporary Worker Initiative — We of excellence by the Safety Standard of COVID-19 response and risk mitigation plan, Kelly has played a leadership role in driving of Employee Safety launched this initiative Excellence Program, including a pandemic Best Practices, by to help staffing agencies provided by the American planning and business safety across the staffing industry. We the American Staffing and host employers Staffing Association and continuity plan, to actively collaborate with industry peers Association — Employee understand and manage National Security Council ensure the health and and government agencies to design Safety Committee. The OSHA compliance, safety to encourage staffing safety of our employees, and share best practices that provide guidelines have helped to program obligations companies to adopt temporary workforce, and recommendations to help other staffing improve industry’s safety through specific safety best practices support our customers record, analyze impacts on enforcement and and measure continuous on best practices and firms and their customers ensure a productivity, turnover, and compliance tools. improvement. information during the culture of health and safety in their work insurance cost. outbreak. environments. 2018 2020 2011 2013 24 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES / ENVIRONMENTAL Our response to and safety of our employees and workers have been a priority in our plan response. readiness. We also made counseling sessions available to our employees and plans and benefits during the outbreak, waiving the financial costs of COVID-19 COVID-19 We have implemented protocols to avoid created a follow-up plan for those directly treatment and telemedicine services, as Since the Coronavirus outbreak was first the unnecessary risk of transmission while impacted by the pandemic. well as providing free testing and facilitating reported in December 2019, Kelly has been providing information and responsive access to prescription medications, actions, helping employees and employers To ensure the health and safety of all our thus guaranteeing that patients do not carefully monitoring the situation through with best practices for balancing work and members, we also worked with our health experience shortages or difficulties when its risk management and crisis response personal lives, promoting wellness, and care providers to offer special medical receiving these services. team. Our industry and its valuable temporary workers have been actively connecting people with work opportunities serving health care, science, technology, during this unprecedented time. and education organizations on the front lines of fighting the Coronavirus. BUSINESS CONTINUITY PLAN & RESPONSE We have implemented a specific Resources for employees and business continuity plan for preparing employers to stay #InThisTogether Emergency Communications and responding to pandemics. This plan Kelly is committed to supporting the Management Team A comprehensive protocol which health and resilience of our employees, Global, interdepartmental group leverages a variety of methods, includes infectious control measures, is empowered to quickly make including e-mail, audio calls, communication, education, and other communities, and customers during this strategic decisions in response and text messaging, to maintain operational procedures for all our global time. We launched a dedicated page on to critical events that affect our communication with employees, networks, following guidelines and our website to stay connected with our employees and facilities. clients, and vendors/suppliers. recommendations from the World Health workers and collaborators while providing updated information and responsive actions Continuity of Operations Business Continuity Organization (WHO), the U.S Center for The depth and breadth of our Plan Testing Disease Control (CDC), and the European for balancing their work and personal lives during the crisis. The Kelly Cares Hotline field network and our shared Kelly’s Business Continuity and Center for Disease Prevention and Control. services operations allow us to shift IT Disaster Recovery programs (855-Kelly-06) was launched to connect business operations to alternate are tested at least annually. Most The Emergency Management Team has more rapidly with employees and help them sites to support customers from a recently, the Business Continuity been developed as a cross-functional find out what’s next. remote location. Plan was tested in February 2020, group responsible for coordinating and the Disaster Recovery Plan in crisis management for the organization, With a keen focus on personal well-being, Pandemic Planning October 2019. including containment measures, policies, Kelly made training available through the Specific Business Continuity procedures, communications, and Kelly Learning Center (KLC) on topics planning for pandemics includes such as health and safety, wellness, stress, infections control measures, resources for employees and customers communication, education, and during the COVID-19 crisis. The health anxiety management, and remote work travel safety mechanisms. 25 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES / ENVIRONMENTAL KELLY COVID-19 RESPONSE Large Events Inquiry Management Large events and conferences have Internal resources have been tasked with been cancelled to minimize the risks managing all questions and providing of transmission. We continue to guidance to our internal employees, emphasize the use of technology to including those working with customer communicate to large audiences. specific requirements in managing our temporary workforce. Headquarters and Facilities Kelly is screening all non-essential Ongoing Monitoring visitors to our headquarters and Kelly’s Emergency Management team is facilities. Staff have been provided continuing to monitor the latest changes with additional sanitizing materials to WHO and CDC guidance. We also and additional cleaning staff have are monitoring best practices across our been added to clean high-touch areas customer base to ensure our employees at our headquarters. are not subject to unnecessary risks of exposure. Social Distancing As suggested by the World Health Organization (WHO) and U.S. Center for Disease Control (CDC), Kelly is urging all personnel to use technology to manage meetings virtually wherever possible. To avoid unnecessary risk of transmission, employees are instructed not to engage in traditional practices such as handshakes. 26 / SUSTAINABILITY REPORT 2020
SOCIAL Employees and people Our people Equity@Work Inclusion and diversity Human rights Supply chain and customer relations Our supply chain Supplier engagement and performance management Supplier risk management Supplier Code of Conduct Engagement Social investment programs Business continuity and risk management Kelly Relief Fund Our sustainability strategy supports the following SDGs:
CORPORATE SUSTAINABILITY AT KELLY SERVICES / SOCIAL KEY MILESTONES Kelly’s CEO, Peter Quigley signed Approximately $59,000 USD We formalized five Affinity Groups the CEO Action for Diversity contributed towards social in 2020. The Affinity Groups promote COVID-19 response: and Inclusion pledge, the largest development initiatives. a culture of inclusion by celebrating ● W e partnered with CEO-driven business commitment to differences, creating an environment health care providers advance diversity and inclusion within where everyone feels encouraged to be to offer special The Kelly Relief Fund provided the workplace, standing with almost their authentic selves, and supporting medical plans and financial support to 41 of our 2,000 other CEOs. the professional development of benefits to our employees affected by natural or employees. employees during the human-made disasters, contributing outbreak; some benefits included: We launched Equity@Work, a more than $26,000 USD through We established an Inclusion waiving COVID-19 treatment costs, bold initiative aimed at breaking down grants and donations. providing testing at no cost, and barriers that prevent people from Council, a cross-functional group facilitating access to medications. having access to meaningful work. to support the development of our KellyConnect engaged ● D eveloped a specific page on inclusion and diversity strategy. 200+ new leaders, all of whom our website, launching the Kelly Our new program Kelly Discover were promoted internally. Cares Hotline to facilitate and stay serves as an engagement Our Diverse Global connected through providing platform solution that strives Supplier Network updated information while to create a more equitable connected approximately communicating actively with all and accessible labor market 450 certified small and diverse employees. for underrepresented talent. suppliers to our Kelly network. In 2020, Kelly’s Leadership in ● T he Kelly Learning Center extended It will reduce the gap by creating opportunities for neurodiverse and Action (LIA) program had 1,005 well-being training on topics such as participants, representing 622 females 4,700+ volunteer hours opportunity talent. stress, anxiety management, remote and 383 males. contributed from employees towards work readiness, and others, to all social impact initiatives. employees. 4,700+ veterans hired on behalf of our clients. 28 / SUSTAINABILITY REPORT 2020
CORPORATE SUSTAINABILITY AT KELLY SERVICES / SOCIAL EMPLOYEES AND PEOPLE Our people Benefits ● E ducational assistance — The Peanut Butter Program provides options to help Personal time and family support: The health and financial well-being of ● P aid time-off — holidays; personal time off, W tackle student debt. bereavement; volunteer day; birthday; and e provide employment our employees and their families is an opportunities for approximately important part of Kelly’s culture. We ● S upplemental plans — Business travel sick days. 7,100 individuals worldwide. Our provide competitive benefits to our full- accident plan; employee discount ● Short-term disability for new parents. responsibility hinges on providing inclusive, time and part-time employees3 in the U.S: program; group home and auto program; ● Flexible work schemes. fair business practices and working transportation spending; vacation purchase; conditions that guarantee labor and safety Medical and health programs: Return Return to Work and to Work Retention and Retention Rates Rates voluntary legal plan, among others. compliance, adherence to international ● M edical insurance — health care, vision, Male Female Male Female laws and standards, and ensuring human and dental; health savings account; rights for all our employees in the global health care spending, and dependent care spending. Short-term disability workforce across our supply chain. for new parents 2% 98% Kelly has implemented formal policies ● L ife and Disability insurance — group In 2020, our employees benefited and procedures in our Code of term life; disability; accidental death 100% from our short-term disability for new 100% 88% 88% parents program in the U.S. m Male m Female Business Conduct and Ethics to ensure and/or dismemberment; outpatient non-discriminatory practices, equal physician’s treatment; disability Returnincome to Work andReturn Retention to to Rates Work and Retention Rates Return work and retention rates employment opportunities, and welfare (basic and supplemental),and Male more. Female Male Female m Male m Female in our workplace as well as across our ● E mployee Assistance Program — offers customers’ network through our Supplier access to counselors, wellness, and Code of Conduct. We are proudly ranked mental health programs and resources; in the top five percent in the supplier discount programs; life advisor coaching Male Female assessment of fair business practices by EcoVadis. services, and others. 100% 100% 88% 100% 88% 100% 82% 82% Financial security: ● R etirement plans — In 2020, we introduced a new fund option that considers ESG criteria in investment Returned to work after taking Retention rate (still employed) 3 Part-time employees working 20 hours or more per week. plans: Parnassus Core Equity. short-term disability for new parents 29 / SUSTAINABILITY REPORT 2020 100% 100% 82% 82%
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