Together We Create Change for Good - 2012 Corporate Social Responsibility Report

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Together We Create Change for Good

2012 Corporate Social Responsibility Report
CONTENTS

           2    VISION

           5    CORPORATE OVERVIEW

           10   ENVIRONMENTAL RESPONSIBILITY

           17   SUSTAINABLE TECHNOLOGY

           19   WORKPLACE RESPONSIBILITY

           21   SOCIAL RESPONSIBILITY

           24   SUMMARY
SMALL WORLD,
VISION

                                                  BIG PICTURE
                                                  The more we embrace and act on our commitment to sustainability, the more we realize a simple
                                                  truth: success demands global cooperation. We are a global community—interconnected,
                                                  interrelated. Success in sustainability depends on US: you, me, our clients, our suppliers, and
                                                  everyone else touched by the expanding web of relationships that helps us develop and deliver
                                                  brand development and deployment services around the world.

                                                  And so in our Sustainability Report for 2012, we tell a story of growing success, achieved not
                                                  single-handedly—but as community in the regions in which we operate, where our clients go to
                                                  market, and where the impact of how we do business is felt. Our impact is driven by US across
                                                  many arenas—operations, products, workflow, and innovations, to name just a few.

                                                  These touchpoints represent some of our Seven Pledges for Corporate Responsibility. To showcase
                                                  both efforts and results achieved, this report walks you through progress made on these fronts and
                                                  others. We are proud of how we further reduced polymer waste, emissions, energy usage, and more.
                                                  We are especially proud of our employees whose insights and innovation continue to improve the
                                                  results we achieve. And we challenge all to demonstrate personal accountability to act sustainably.
                                                  A commitment that begins with the simplest of individual decisions made daily at work and at
                                                  home: to recycle, to limit printed copies, and to manage cooling and heating, among other actions.

                                                  Not every sustainability success, however, can be quantified. That’s because operating in a
                                                  sustainable way also involves qualitative factors: collaboration, communication, employee skill sets,
                                                  and other drivers. We made inroads here, too. Collectively, our efforts position SGK, and its branded
                                                  business—Schawk, Brandimage, and Anthem—to properly care for the environment, our economy,
                                                  and our global community—today, tomorrow, and beyond. Future success depends on our many
         “We are especially proud of our
                                                  partners and us. Let US push on together.
         employees whose insights and
         innovation continue to improve           Sincerely,
         the results we achieve.”
                                                  David Schawk
                                 — David Schawk   Chief Executive Officer
                                                                                                                                                          2
COMMITMENTS                                                                                            WE PLEDGE TO:

A FOUNDATION                                                                                           1.   Ensure operations all over the world continue to use clean production

FOR SUCCESS
                                                                                                            technologies and follow best practices for environmental protection.

                                                                                                       2.   Provide goods and services that enable brand owners and retailers to
                                                                                                            meet and exceed regulatory and proprietary environmental initiatives.
OUR 7 PLEDGES FOR
CORPORATE SUSTAINABILITY                                                                               3.   Build and nurture collaborative relationships with our clients, suppliers,
                                                                                                            product and service collaborators and industry associations to enable
The SGK commitment to sustainability includes seven pledges. These pledges are our promise—the              a swift and intelligent exchange of environmental solutions.
guiding principles behind our pursuit of sustainable business practices. We hold every initiative to
these promises. They serve both as our broad-based measure of success and as our template for
future programs.                                                                                       4.   Help clients streamline their brand development workflow through better
                                                                                                            use of best practice workflows, technology, enhanced materials selection
                                                                                                            and source reduction.

                                                                                                       5.   Leverage our knowledge and experience to create new services
                                                                                                            and solutions that drive environmentally friendly brand development
                                                                                                            thinking forward.

                                                                                                       6.   Nurture a climate of innovation that makes possible great leaps forward.

                                                                                                       7.   Create a healthy environment both in the communities where we live and
                                                                                                            work and in the world community.

                                                                                                                                                                                         3
INSPIRED VISION,
                                                                                                                                                    A CONTINUUM OF
                                                                                                                                                    SUSTAI NABILITY

                                              REAL PROGRESS
                                                                                                                                                    2006
                                                                                                                                                    – Led the first internal
                                                                                                                                                      Sustainability Report

                                                                                                                                                    2007
                                                                                                                                                    – Started tracking scope
                                              Sustainability is a dynamic thing. You can’t be satisfied with past successes. Instead, it’s all        1 and 2 carbon dioxide
                                              about movement, progress and expansion of your view of the world and how you care for people            equivalent emissions
                                              and the planet. At the same time, pulling together this annual Sustainability Report offers a
                                                                                                                                                    2009
                                              great opportunity to pause and reflect on what we achieved in 2012.                                   – Led the first supplier
                                                                                                                                                      report with the carbon
                                              Across SGK, we continued to take action to protect the planet’s resources and support the               disclosure project
                                              communities where our employees live and work. I’m pleased to report we achieved the
                                              resource goals we set for 2012, reducing both energy usage and paper consumption. For                 2010
                                                                                                                                                    – Released the first public
                                              example, employees in Sydney, Australia re-engineered work processes and embraced an almost             Sustainability Report
                                              completely paperless workflow. That, of course, is good for our forests.
                                                                                                                                                    2011
                                              In our communities, employees spearheaded charitable efforts that included many food                  – Set first public
                                                                                                                                                      sustainability goals
                                              drives and fundraisers. In the U.S., an integrated, national Sharing Campaign benefitted local
                                                                                                                                                    – Reduced electricity 1.5%
                                              organizations focused on health and wellness, education and other worthy causes.                      – Reduced office paper 7%

                                              This past year, our sustainability impact reached outside of SGK in a new way. Employees from         2012
                                              our Anthem business made that possible through conducting a first-ever sustainable packaging          – Reduced kwh/$1M
                                                                                                                                                      in sales by 2%
                                              innovation workshop for clients. Going forward, we will continue to deliver thought leadership
                                                                                                                                                    – Reduced office paper/$1M
                                              through forums like these.                                                                              in sales by 16%
                                                                                                                                                    – First National
                                              I am hopeful that you find these stories and others in this year’s Sustainability Report inspiring.     United Way Campaign
                                              Our continued success, and the sustainability success of our clients and our supplier partners,
                                                                                                                                                    2013
                                              is having a positive impact. That offers great hope and promise for the future and represents         – Will reduce kwh/$1M
                                              progress we can all be proud of.                                                                        in sales by 2%
“Our continued success is having                                                                                                                    – Will reduce office paper/$1M
 a positive impact and represents             Sincerely,                                                                                              in sales by 4%

 progress we can all be proud of.”                                                                                                                  2015
                                                                                                                                                    – Will begin to assist clients
                                              Tim Rose                                                                                                with sustainability
                                 — Tim Rose   Vice President, Strategic Innovation Initiatives                                                      – Will reduce non-essential
                                                                                                                                                      business processes

                                                                                                                                                                                     4
CORPORATE OVERVIEW
                     CORPORATE PROFILE

                     A HISTORY
                     DEDICATED TO
                     OUR FUTURE
                     SGK’s history stretches back more than 60 years and into a very wide range of graphics services
                     and premedia services. Early on, we recognized that Schawk was the start of something great,
                     with the potential to be a force for good.

                     Through smart growth and good service, we have acquired and developed skills and capabilities
                     that enable us to help guide the life of a brand from its strategic conception to its packaging,
                     advertising and promotion worldwide, throughout its lifecycle.

                     However, all through our history, we have strived to do more to transcend simple business
                     accomplishments. For us, success is measured in more than dollars and cents, it’s measured in
                     what we have been able to achieve for our employees, our communities, our world.

                                                                                                                        5
GOVERNANCE

TRANSFORMATIVE VISION                                                                                                                                                    CODE OF
                                                                                                                                                                         ETHICS
Our commitment to sustainability is embraced by every level of management. Our leaders have created a business culture that
                                                                                                                                                                         Our standards clearly set
values shared responsibility. Together, and only together, can we achieve success. This clarity of purpose has led to a workplace
                                                                                                                                                                         forth SGK’s expectations for
that upholds the freedom—and duty—to do what is right for each other, the community and the world.
                                                                                                                                                                         the professional behavior of
                                                                                                                                                                         its employees. The values
                                                                                                                                                                         on which the code is based
                                                                                                                                                                         include truthfulness, honesty,
                                                                                                                                                                         fairness, respect and the clear

EXECUTIVES                                                                                    BOARD OF DIRECTORS
                                                                                                                                                                         and accurate representation of
                                                                                                                                                                         positions in relationships with
Clarence W. Schawk, Chairman of the Board                                                     Clarence W. Schawk, Chairman of the Board                                  clients, suppliers, stakeholders
David A. Schawk, Chief Executive Officer                                                      David A. Schawk, Chief Executive Officer                                   and the community.

Eric Ashworth, President                                                                      A. Alex Sarkisian, Senior Executive Vice President of Client Development   These principles and
A. Alex Sarkisian, Esq, Senior Executive Vice President of Client Development                 Leonard S. Caronia, Director                                               practices, a cornerstone of our
Timothy J. Cunningham, Executive Vice President and Chief Financial Officer                   Stanley N. Logan, Director                                                 foundation, have sustained the
                                                                                                                                                                         company through its growth for
Brad Wills, Executive VP, International, Asia Pacific                                         John T. McEnroe, Director                                                  over 60 years and will continue
Carol G. Campagnolo, Senior Vice President, Human Resources                                   Michael G. O’Rourke, Director                                              to serve as a guide as SGK
Tim Rose, Vice President, Strategic Innovation Initiatives                                    Hollis W. Rademacher, Director                                             moves forward into the future.

                                                                                              Patrick J. O’Brien, Director
                                                                                                                                                                         To view our code
                                                                                              To view our corporate governance guidelines,                               of ethics, please
                                                                                              please visit sgkinc.com                                                    visit sgkinc.com

                                                                                                                                                                                                            6
FINANCIAL OVERVIEW

PERFORMANCE
WITH PURPOSE
We believe our fiscal stability and sustainability achievements are mutually dependent.
One cannot exist without the other. The more success we achieve in sustainability, the
greater our financial achievement. Inversely the greater our fiscal fortunes, the more
ambitious we can be in pursuing our sustainability goals.

ANNUAL NET SALES
    460,626                                                   460,730
                                 455,293

      2010                          201 1                       2012

Net Sales (totals are in $000s)

For detailed financial information, please visit sgkinc.com
                                                                                          7
SERVICES                                                                                      Brand Development Services

OUR DAILY QUEST
                                                                                              Offered Through BrandimageSM
                                                                                              and Anthem WorldwideSM:

FOR QUALITY
                                                                                              –   Research
                                                                                              –   Strategy
                                                                                              –   Creative
                                                                                              –   Innovation
SGK offers a comprehensive range of integrated brand development and deployment               –   Governance
services that leverage the expertise of thousands of professionals from
various disciplines throughout the world.

These services are developed and customized to meet the evolving needs of our unique          Brand Deployment Services
clients, and the processes they require are supported by a range of integrated Best           Offered Through SchawkTM:
Practices. By tailoring our services and processes, we create powerful efficiencies for our
employees and unsurpassed quality for our clients while minimizing the environmental          –   Project Management
impact of our activities.                                                                     –   Workflow Optimization
                                                                                              –   Adaptive Design
                                                                                              –   Production Art
                                                                                              –   Premedia
                                                                                              –   Photography & Retouching
                                                                                              –   Flexo Plates
                                                                                              –   Gravure Cylinders
                                                                                              –   ColorDrive Print Quality Management
                                                                                              –   Large Format Printing
                                                                                              –   3D/Prototyping
                                                                                              –   Copy Management & Automation
                                                                                              –   BLUE™ SaaS Technology
                                                                                                   – Packaging & Collateral Lifecycle Management
                                                                                                   – Digital Marketing Lifecycle Management
                                                                                                   – Proofing & Text Compare
                                                                                                   – Digital Asset Management
                                                                                                   – Analytics & Performance Management

                                                                                                                                                   8
LOCATIONS

OUR PLACE IN THE WORLD
We have the wonderful advantage of being an international corporation. Not only does this provide us with a solid foundation for growth,
it equips us with a unique world view that makes clear the importance of sustainability and enables us to take advantage of knowledge,
expertise, experience and culture of our employees from virtually every corner of the globe.                                                        WORLD HEADQUARTERS
                                                                                                                                                    Des Plaines, Illinois

                                                                                                                                                    NORTH AMERICA
                                                                                                                                                    Atlanta, Battle Creek, Chicago,
                                                                                                                                                    Cincinnati, Des Plaines,
                                                                                                                                                    Kalamazoo, Los Angeles,
                                                                                                                                                    Minneapolis, Mississauga,
                                                                                                                                                    Mount Olive, New Berlin,
                                                                                                                                                    New York, Northbrook, Redmond,
                                                                                                                                                    San Francisco, Stamford,
                                                                                                                                                    Sterling Heights, Toronto

                                                                                                                                                    EUROPE
                                                                                                                                                    Antwerp, Brussels, Hilversum,
                                                                                                                                                    Leeds, London, Newcastle,
                                                                                                                                                    Manchester, Paris, York

                                                                                                                                                    ASIA PACIFIC
                                                                                                                                                    Chennai, Hong Kong, Melbourne,
                                                                                                                                                    Penang, Shanghai, Shenzhen,
                                                                                                                                                    Singapore, Seoul, Sydney, Tokyo

                                                                                                                                                    LATIN AMERICA
                                                                                                                                                    Querétaro, São Paulo

                                                                                                                    Data in this report is based on the locations listed on this page.
                                                                                                                                                                                         9
IMAGINE A
OVERVIEW
 ENVIRONMENTAL RESPONSIBILITY

                                                                                   HEALTHIER WORLD
                                                                                   SGK’s commitment to the environment is driven not only by our belief that working cleaner and
                                                                                   smarter is good business, but also by the personal connections our employees have to their own
                                                                                   communities. Both the complex nature of our business and the global presence of our operations
                                                                                   present many opportunities to make a difference on the planet. We’re in a great position to
                                                                                   create meaningful and positive changes.

                                                                                   From simple lighting adjustments at a single location to company-wide initiatives to lower
                                                                                   emissions, we continue to make progress in reducing our carbon footprint. Our pursuit of
                                                                                   environmental sustainability has garnered positive responses from our customers, and we
                                                                                   likewise urge our suppliers to employ comparable environmentally sound practices. As part of our
                                                                                   efforts, we set yearly company goals in each of our impact areas, and carefully monitor resource
                                                                                   use and waste generation to keep us on track. Under the guiding principles of our 7 Pledges of
                                                                                   Sustainability, we’ll continue to integrate sustainable practices across our business, using our
                                                                                   resources responsibly and maintaining the health of our communities.

                                “Our pursuit of environmental
                                 sustainability has garnered positive
                                 responses from our clients.”

                                                                 — Tom Klamm,
                                                  Director of Technical Services

                                                                                                                                                                                  10
100%
SUSTAINABILITY SUMMARY

POLYMER                                                                                                                   recycled scrap
                                                                                                                         polymer in 2012
Since 2010, SGK has partnered with DuPont to recycle platemaking scrap. In the first year alone,                            in facilities
SGK recycled 24,500 pounds.                                                                                              where partnered
                                                                                                                           with DuPont
In 2012, we reached a new level of success and recycled 48,707 pounds of polymer (24.4 tons) with
virtually no platemaking scrap material sent to a landfill. While maintaining our plate volume,
we have managed to reduce our environmental footprint thanks to DuPont’s partnership and our commitment.

                                                                                                                  48.7

                                                                                                           40.6

            27.2
                                   23.8                                                    24.5
                                                           20.4

           2007                    2008                    2009                            2010            2011   2012

        Pounds to landfill in 000s                                                     Pounds recycled in 000s

“While maintaining our plate volume, we have managed
 to reduce our environmental footprint.”
                                                                                    —Neil Davidson
                                                                                     Vice President, Operations
                                                                                     Toronto
                                                                                                                                            11
SUSTAINABILITY SUMMARY

EMISSIONS
We continually strive to lower our emissions and improve our ability to monitor our progress. In 2011, we shifted our process
                                                                                                                                        5.7%
                                                                                                                                        reduction in
to comply with Greenhouse Gas Protocol 4.3 and recalculated prior years’ data to have an accurate comparison.                             emissions
                                                                                                                                         since 2010
We regularly examine the Carbon Disclosure Project protocol as a source for strengthening our reporting. We look at how our
clients report their emissions and we adopt our clients’ best practices when they can be adapted to our operations.

                                                                     44.73

                                        43.06                                                     43.01
                                                                                                                                42.18

           40.62

            2008                         2009                         2010                          2011                        2012

        Metric tons of CO2e/$1M in sales

“We continually strive to lower our emissions and
 improve our ability to monitor our progress.”
                                                                                       —Steve Meredith,
                                                                                        Group Quality & HSE Manager (Europe)
                                                                                                                                                       12
10%
SUSTAINABILITY SUMMARY

ELECTRICITY                                                                                                                            reduction in
                                                                                                                                         kilowatts
Reducing our demand for electricity is imperative to increasing operational efficiency and shrinking our carbon footprint. We            per hour
continually explore practices and technology to lower our demand. Ongoing improvements in our data collection enables us                since 2008
to form precise plans to reduce energy consumption.

Since establishing our baseline in 2006, we have conserved enough electricity to power a total of 674 average American
homes for a year and have prevented the emission of 21,052 tons of CO2e.

            25.2

                                                                      22.7                         22.8                         22.7
                                          22.1

            2008                         2009                         2010                          2011                        2012

        Kilowatts per hour in millions

Since establishing our baseline in 2006, we have conserved enough
electricity to power a total of 674 average American homes for a year.

                                                                                                                                                      13
SUSTAINABILITY SUMMARY

PAPER
Paper offers many opportunities for sustainability advancements simply because it plays such a large role in our business.
                                                                                                                                     38%
                                                                                                                                       reduction in
And in 2012, we reduced our need for paper by 16% from the previous year. We did this by shifting to paperless workflow in          total paper usage
more business units and double-sided printing of internal documents.                                                                    since 2008

Paperless revenue recognition has also cut costs, labor and waste. No longer do employees need to find, download, print
and walk to the printer multiple times for each job. We save an average of 5 sheets of paper and about 10 minutes per job.
This is equal to 135,000 sheets of paper and 4,500 hours of employee time every year.

             2.3

                                                                      1.8                          1.7
                                          1.6
                                                                                                                              1.4

            2008                        2009                         2010                         2011                       2012

        Total square inches in billions

Instead of pulling hard proofs, we developed a new digital review process at our office in
San Francisco. Clients can now review a PDF when it isn’t necessary to see a tangible proof.

At our Redmond office, we decommissioned our hard copy proofing machines
and waste paper handler. We estimate that we’re saving a tree a week.                                                                                   14
SUSTAINABILITY SUMMARY

HEAT
In 2012, we reduced our therms of energy for heat to 244,051 and have cut our demand for heat by almost 40% since
                                                                                                                            144.4K
                                                                                                                             reduction in
                                                                                                                             total therms
2008. This remarkable accomplishment was made possible by a wide range of conservation measures—everything from               since 2008
better physical plants to simple insulation and better control of HVAC systems.

          388.5

                                     329.4
                                                                                           312.0
                                                                300.3

                                                                                                                    244.1

           2008                       2009                       2010                       2011                    2012

        Therms in 000s

By combining our offices in Minneapolis and St. Paul into a new energy efficient
building, we saved 5,471 therms of energy and cut our natural gas cost by $4,775.

                                                                                                                                            15
SUSTAINABILITY SUMMARY

WASTE
We continued a trend of decreasing overall waste generation in 2012, and we are now recycling 100% of our scrap polymer at our
                                                                                                                                        48%
                                                                                                                                        reduction in
Cincinnati location. We have also cut back on the paper we use and we’ve increased the paper we recycle. The 2012 decrease in           overall waste
recycled percentages was due to a drastic reduction in waste at our large format printing plant.                                         since 2008

By evaluating key areas and addressing them, we are able to improve recycling, reduce waste costs and increase our overall
efficiencies as well as our environmental payback.

          33.7
     (recycled 41%)
                                       28.7
                                  (recycled 56%)
                                                                   23.7
                                                              (recycled 66%)                   20.1
                                                                                          (recycled 53%)
                                                                                                                            17.6
                                                                                                                       (recycled 51%)

          2008                          2009                        2010                         2011                        2012

        Total cubic yards waste in 000s

Our Los Angeles office continues to move short-run litho work to
digital equipment to reduce ink and paper waste and VOCs.

We installed a new, more efficient distillation unit at our office
in Antwerp that cut solvent usage year over year by 36 percent.                                                                                         16
INNOVATION
SUSTAINABLE TECHNOLOGY
OVERVIEW

                         FOR IMPACT
                         SUSTAINABLE PACKAGING
                         We begin the development of effective, sustainable packaging at the very start. Two-thirds of
                         a package’s material requirements are determined early, and this is when we build sustainable
                         materials and processes into identities, packaging and delivery systems:

                         –   Our premedia expertise enables us to achieve optimal color while reducing ink and substrates
                         –   Printer analysis and audits enable us to come up to color quickly
                         –   Print-management services and our printer scorecards reduce rework and maximize accuracy
                         –   Upstream collaboration saves resources and time as well as minimizing rework

                         Because we understand how biodegradable substrates and inks perform on press and in an
                         outdoor environment, we can take the greatest advantage of eco-friendly solutions.

                         COLORDRIVE
                                                 TM

                         ColorDrive™ makes crucial print-quality data visible, accessible, measurable and
                         analyzable—on-demand and in real time. It improves consistency, efficiency and savings by
                         enabling users to make more informed decisions at every stage of the print process, thereby
                         reducing waste and delivering on their sustainability pledge.

                                                                                                                            17
BLUE TECHNOLOGY
                       TM

DAILY SUSTAINABILITY
Sustainability goes beyond the efficient use of materials. It is also achieved through daily processes that
call for less energy, fewer resources and less rework.

Our BLUE cloud-based SaaS technology enables us to realize a broad range of these efficiencies.
Web-based software modules, managed services, implementation services, on-site and implementation
support are used in combination so we can do more with less.

COPY MANAGEMENT
Reduces data entry, automates work and minimizes errors on packaging.

ASSET MANAGEMENT
Reduces the recreation of assets and shipping costs. Workflow Management formalizes the process to
make it easier to measure and identify areas for improvement.

KPI REPORTING
Quickly identifies bottlenecks and inefficiencies in job progress to save time, energy and material.
                                                                                                              Sustainability goes beyond the efficient
ONLINE PROOFING
Eliminates the time and cost needed to produce and distribute proofs.                                         use of materials. It is also achieved
                                                                                                              through daily processes that call for less
                                                                                                              energy, fewer resources and less rework.

                                                                                                                                                           18
A CANVAS
WORKPLACE RESPONSIBILITY
OVERVIEW

                                                                          FOR CHANGE
                                                                          There is simply no escaping that sustainability depends on us. It depends on our
                                                                          employees, clients, suppliers and everyone else touched by our ever-expanding worldwide
                                                                          web of relationships.

                                                                          As a corporation, we can talk about initiatives and lay plans. We can create programs and
                                                                          set goals, but our success is wholly dependent upon us.

                                                                          To enable this progress, we are continually improving our workspace and investing in
                                                                          our capabilities, equipment and technologies that create a more productive and efficient
                                                                          environment for our people and clients.

                                                                          This greater efficiency improves our ability to provide integrated strategic, creative and
                                                                          executional services around the world. It also makes us better equipped to help companies
                                                                          of all sizes create compelling and consistent brand experiences that strengthen consumers’
                                                                          affinity for these brands. From this, ultimately comes more success for our company, clients
                                                                          and employees.

                           “To improve the employee experience and
                            work environment, we are investing in
                            learning and development, equipment,
                            and technology.”
                                                   — Carol Campagnolo,
                                              Executive Leadership Team
                                                                                                                                                                         19
COMMITTED TO DIVERSITY
A culturally and ethnically diverse workforce isn’t just good for business—it’s good for people.
We believe that greater diversity in our workforce yields greater thinking, stronger talent and
better ideas: Ideas that drive the success of our company and the sustainability of Earth’s most
valuable resource, its people.

As a company whose locations and clients span the world, we see value in a workforce that is
a reflection of that world. We seek employees from all walks of life, and our hiring practices
consider a multitude of variables and backgrounds to ensure our goal of building a stronger,
more capable organization. We strive to foster an environment of diversity and respect and we’re
committed to providing employees with the training needed to improve skills and to create the
opportunities to advance.

PERFORMANCE MANAGEMENT
Performance Management enriches lives by supporting SGK’s employee development and
high-performance culture. It helps define clear expectations for job performance and provides
clarity for objectives aligned with company priorities to achieve impactful results.

Performance Management facilitates open, two-way feedback between managers and
employees about performance and development which fosters an environment for continuous
improvement. On an individual level, this focus can lead to personal and professional growth,
future opportunities and increased job satisfaction. On an organizational level, benefits include
reductions in waste and resource use and increases in overall efficiencies.

                                                                                                20
LOCAL COLOR,
SOCIAL RESPONSIBILITY
OVERVIEW

                        BRIGHTENED LIVES
                        Around the world, SGK’s involvement in the local community is immediate, heartfelt and tangible.
                        Helping our neighbors as a neighbor, wherever they may live, is fundamental to our commitment
                        to worldwide sustainability.

                        WORLD WORTH SAVING IV
                        Each year, SGK holds our “World Worth Saving” employee photo contest.
                        This creative arts competition enables us to see, through the eyes of our employees, our world’s
                        natural beauty and man’s relationship with the environment and each other.

                        PHOTO: FIRST PLACE WINNER Ramesh Johnson, Schawk Chennai

                        View the 2012 winners on Flickr.com

                                                                                                                           21
WISHES COME TRUE                                                    SPIRITED SUPPORT
SGK’s annual fundraising event for the Make-A-Wish                  Gina Ruffolo, of Schawk Retail Marketing in Chicago, rallied nearly
foundation raised enough money to make two children’s wishes        100 coworkers to help make Christmas special for underprivileged
come true. David Schawk also supports this organization by          inner-city schoolchildren. The volunteers’ generosity and other
volunteering for their board of directors.                          donations brightened the lives of 136 kids by giving them a party
                                                                    with food, presents and Santa.

CARING TO SHARE
Through its integrated, national sharing campaign, U.S.             ON YOUR MARK, GET SET…
employees and the company contributed $137,136 to United Way.       Our Cincinnati and Kalamazoo offices competed to see who could
Local fundraisers included a charity art auction hosted by Anthem   collect the most food and clothing for a local shelter, and it turned
New York employees.                                                 into our biggest local outreach in 2012!

HARVEST TIME                                                        A GREAT WAY TO
Started by Clarence Schawk, the SGK Corporate garden                SAY “THANKS”
planted outside our Des Plaines corporate office yielded 13         PETALS is Schawk’s employee engagement team in Chennai, India. On
bushels of cucumbers, tomatoes, peppers, and other vegetables.      December 1, to celebrate “Appreciation Day”, they sold flowers and
The fresh food was donated to the Des Plaines Food Pantry.          cards to raise money to help a needy child in their community receive
                                                                    an education.

Around the world, SGK employees actively seek to create
positive changes in their communities, and their cumulative
efforts help improve the quality of life for the global community.
                                                                                                                                               22
                                                                                                                                            PAGE
RUN FOR CHARITY                                                            COLORFUL AND GREEN
PHOTO ABOVE: Twenty-six employees from Des Plaines and Dearborn            SGK employees designed and managed the renovation of their Manchester,
helped local non-profit organizations by running or walking 3.5 miles      England Café using area suppliers to help the local economy and environment.
in the Chase Corporate Challenge.                                          Account Director Jonathan Blakeley says, “The use of bright, fresh colors in the
                                                                           café lifts the spirits of employees.”

DINNER TIME
Our San Francisco office conducted a food drive over the winter holidays   CASH FOR CHRISTIE’S
that gathered 280 pounds of food for the Marin Food Bank.                  Our Manchester office organized an employee-hosted Christmas lunch, a raffle
                                                                           and an email auction that raised £1220 for Christie’s, a local cancer treatment

LOVE AND HUGS                                                              hospital and surpassed their 2012 fundraising goal.

                                                                           A CLOSE SHAVE
In Shanghai, 15 SGK employees spent time giving children at an
orphanage what they needed most, friends to play games, give hugs
and share laughter.                                                        Adam Ransom, Managing Director of our Australia office, took part in the
                                                                           Leukemia Foundation’s “World’s Greatest Shave” event and raised AUD $4,748 in

BLOWN AWAY                                                                 donations from over 75 colleagues across APAC.

The New York Anthem office joined with United Way and the Red Cross
to help those devastated by Hurricane Sandy.

                                                                                                                                                                 23
                                                                                                                                                              PAGE
WE ALL MAKE
SUMMARY
OVERVIEW

           A DIFFERENCE
           THANK YOU!
           We have only begun our journey to sustainability and there is much more work to be done.
           However, to everyone who has helped us attain our sustainability goals during 2012, we would
           like to share our heartfelt thanks. Working together is what has enabled us to succeed. Your
           support and encouragement has been key to our perseverance.

           To our clients and suppliers, we are most grateful for your willingness to join our pursuit of
           sustainability. In our high-pressure world, it is truly inspiring to work with partners who see that
           sustainability is good for business and agree that on some days there is a higher calling than
           just the bottom line.

           Finally, to our employees who put out the extra effort every day to make sustainability a reality,
           we would like to extend a special thank you. It is one thing to launch initiatives and file reports,
           it is another thing entirely to achieve success. We appreciate your dedication and are grateful for
           your enthusiastic support in helping to make this world just a little better.

                                                                                                             24
OUR ONGOING SUCCESS
If success breeds success, and we believe it does, our sustainability record over the last several years would lead one to believe that
more good things are coming soon.

Year after year, we have lowered our demand for electricity, paper and heat. We’ve lowered our emissions, and we’ve increased our
recycling. Our people are more productive and have greater opportunities than ever before, and we’re particularly proud of how each
year we have been able to do more in our communities around the world.

Despite our accomplishments, we are not satisfied with standing still and it is up to US to make it happen.

We want to work even closer with our suppliers and clients to help them achieve their own sustainability success. Working together in
2014, 2015 and beyond, we can do more to streamline business processes, reduce our demand for natural resources and energy, and
cut our need for paper by moving toward electronic document storage. We are also eager to source more materials locally to reduce
the transportation burden on our environment.

And perhaps most important, we hope that the example we set by continuing to pursue sustainable practices will inspire our
employees, clients and suppliers to personally embrace ecologically sound practices in their lives and careers.

Together, as US, we can achieve great things.

                                                                                                                                          25
In keeping with our commitment to environmental sustainability, this report was designed, built and produced digitally.

SGK (NYSE: SGK), is a leading global brand development, activation and deployment company that drives brand performance while contributing
to environmental sustainability.

WANT TO KNOW MORE?
Talk to us.
Call: Tim Rose at 847.296.5708
Email: trose@schawk.com

SGK is a leading global brand development, activation and deployment company that drives brand performance. By creating brands, selling brands,
producing brand assets and protecting brand equities, we help our clients achieve higher brand performance. SGK’s global footprint spans 26
countries. For more information visit: http://www.sgkinc.com

Follow SGK on www.brandsquare.com and twitter.com/BrandSquare

© 2013 SGK All Rights Reserved. No part of this work may be reproduced in any form without written permission from the copyright holder.
Schawk is a registered trademark of SGK. The Schawk and BLUE logos are trademarks of Schawk, Inc. The Anthem and Brandimage logos are
servicemarks of Schawk, Inc. All other trademarks are the properties of their respective owners.
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