Agilent Corporate Citizenship Report 2012

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DISCLOSURE ON MANAGEMENT APPROACH EC
Agilent is a technology leader in communications, electronics, life sciences and chemical analysis. With four primary business segments—Life Sciences, Chemical Analysis, Diagnostics and Genomics, and Electronic Measurement— we have 19,200 employees and serve customers in more than 100 countries. Agilent had revenue of $6.9 billion in fiscal year 2012—a 3.5 percent increase over fiscal year 2011. The company’s stock trades on the New York Stock Exchange under the ticker symbol “A.”

The company’s financials are reported publically on its external website at Agilent Investor Information.

Agilent sells its products worldwide and is subject to risks associated with doing business internationally. We expect that revenue from international operations will continue to represent a large percentage of our total business. In addition, many employees, contract manufacturers, suppliers, job functions and manufacturing facilities are increasingly located outside the U.S. Agilent articulates a variety of risk factors in its regular 10-K and 10-Q filings with the U.S. Securities and Exchange Commission. For more information, go to Agilent Investor Relations.

Agilent recognizes ISO 26000 as a reference document that provides guidance on social responsibility. Agilent aligns with ISO 26000 standards as part of our social responsibility practices. As such, Agilent’s economic-related practices and processes align with ISO Core subjects: Organizational Governance 6.2 and Fair Operating Practices 6.6 and Community Involvement and Development 6.8

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DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED, INCLUDING REVENUES, OPERATING COSTS, EMPLOYEE COMPENSATION, DONATIONS AND OTHER COMMUNITY INVESTMENTS, RETAINED EARNINGS, AND PAYMENTS TO CAPITAL PROVIDERS AND GOVERNMENTS
In Agilent's fiscal 2012, annual revenues of $6.9 billion represented an increase of 3.5 percent over fiscal 2011. By maintaining a disciplined operating model, the company controlled expenses and delivered significant increases in our operating profits, gross margins and earnings per share.

By maintaining strong free cash flow, we further strengthened our balance sheet. This strength allowed us to renew our commitment to enhancing shareholder value through share repurchases and a quarterly dividend. The first dividend was announced in January 2012.

For more information, go to the Agilent 2012 Annual Report.

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FINANCIAL IMPLICATIONS AND OTHER RISKS AND OPPORTUNITIES FOR THE ORGANIZATION’S ACTIVITIES DUE TO CLIMATE CHANGE
Agilent had no financial implications or other risks and opportunities due to climate change.

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COVERAGE OF THE ORGANIZATION’S DEFINED BENEFIT PLAN OBLIGATIONS
Refer to Agilent’s 2012 Annual Report: Agilent 2012 Annual Report.

Agilent’s defined benefit plans are fully funded at or above required levels:

We contributed $30 million, $33 million and $30 million to our U.S. defined benefit plans in 2012, 2011 and 2010, respectively. We contributed $54 million, $59 million and $47 million to our non-U.S. defined benefit plans in 2012, 2011 and 2010, respectively. We did not contribute to our U.S. post-retirement benefit plans in 2012 or 2011 and contributed $1 million in 2010. Our non-U.S. defined benefit plans are generally funded ratably throughout the year.

Total contributions in 2012 were $84 million, or 9 percent less than 2011. Total contributions in 2011 were $14 million, or 18 percent more than in 2010. Our annual contributions are highly dependent on the relative performance of our assets versus our projected liabilities, among other factors. We expect to contribute approximately $84 million to our U.S. and non-U.S. defined benefit plans and $2 million to our U.S. post-retirement benefit plans during 2013.

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SIGNIFICANT FINANCIAL ASSISTANCE RECEIVED FROM GOVERNMENT
Agilent received no financial assistance from any government agency in fiscal 2012.

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RANGE OF RATIOS OF STANDARD ENTRY-LEVEL WAGE BY GENDER COMPARED TO LOCAL MINIMUM WAGE AT SIGNIFICANT LOCATIONS OF OPERATION
Agilent provides competitive levels of compensation above minimum wage requirements.

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POLICY, PRACTICES, AND PROPORTION OF SPENDING ON LOCALLY-BASED SUPPLIERS AT SIGNIFICANT LOCATIONS OF OPERATION
Agilent has a proactive Supplier Diversity program which focuses on the procurement of materials, components, equipment, supplies and services from small diverse businesses.

We use a specific methodology when sourcing suppliers: TQRDCE, which focuses on total quality, reliability, delivery, cost and environmental sustainability. In addition, all suppliers used by Agilent must adhere to the Supplier Code of Conduct and Agilent’s Expectation of Suppliers.

We have significantly redesigned supplier environmental compliance communications to enable stronger partnerships and adherence to Agilent’s General Specifications for the Environment (GSE).

This effort has positive implications on materials use, regulatory compliance, supplier satisfaction, customer satisfaction and employee satisfaction.

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PROCEDURES FOR LOCAL HIRING AND PROPORTION OF SENIOR MANAGEMENT HIRED FROM THE LOCAL COMMUNITY AT SIGNIFICANT LOCATIONS OF OPERATION
Hiring top talent around the globe helps ensure that Agilent maintains its leadership position. To attract and retain talent, Agilent provides everything from forward-thinking workplace design to community involvement to total compensation packages that rank with the leaders in the high-technology and life science industries. We understand the value—to our business, our employees and our communities—of an inclusive environment that respects and celebrates unique perspectives and life experiences. Our policies and strategies create a pipeline of diverse skills and viewpoints, ensuring that our rich cultural diversity is leveraged for our competitive advantage. Agilent actively recruits top talent from underrepresented groups around the world, and works to build an inclusive environment that develops and retains employees.

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DEVELOPMENT AND IMPACT OF INFRASTRUCTURE INVESTMENTS AND SERVICES PROVIDED PRIMARILY FOR PUBLIC BENEFIT THROUGH COMMERCIAL, IN-KIND, OR PRO BONO ENGAGEMENT
In fiscal 2012, through our businesses, employee programs and foundation, our philanthropic efforts totaled over $10 million.

Agilent and the Agilent Technologies Foundation’s philanthropic investments in university research totaled $4,218,614.

Agilent donated approximately $3,991,000 in equipment to universities.

Agilent and the Agilent Technologies Foundation invested $1,056,316 in science education, reaching approximately 600,000 students and 6,000 teachers worldwide.

Approximately 25 percent of Agilent employees around the world volunteered approximately 50,000 hours in our communities.

For more information about Agilent Technologies Foundation's giving, see the 2012 Audited Financial Statements

Because of our longstanding commitment to our communities, we have a wide range of programs that provide feedback on community needs, and we did not do a community assessment.

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UNDERSTANDING AND DESCRIBING SIGNIFICANT INDIRECT ECONOMIC IMPACTS, INCLUDING THE EXTENT OF IMPACTS
Agilent Technologies is committed to conducting business in an ethical, socially responsible and environmentally sustainable manner. Our citizenship objective is to be an economic, intellectual and social asset to each nation and community in which we operate. As part of our Corporate Social Responsibility mandate, we are focused primarily on science education in communities where Agilent has a presence.

At a global level, we partner with United Way, which identifies local CSR projects, conducts due diligence, and supports the implementation of the initiative on an ongoing basis. Apart from this, there are several independent programs across countries that are supported by the Agilent Technologies Foundation.

For more information, go to Community Relations.