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AdvancingSustainableGrowth2017/2018Corporate Responsibility Annual Report
AboutThis ReportMay 2018 marked a special milestone for our company,as we celebrated five years as Voya Financial, Inc.(NYSE: VOYA), having separated from ING andundergone an initial public offering (IPO) on the NewYork Stock Exchange in 2013. Our report title “AdvancingSustainable Growth” reflects the progress we made aswe worked over those years to meet financial targets,grow our brand, evolve our operating model, build uponour culture and implement our corporate responsibility(CR) strategy.Table of contentsThis report covers the CR strategy and activities of VoyaFinancial and not those of our affiliated representativesor other distribution partners. Comparative andquantitative data within the report covers the 2017calendar year, unless otherwise stated, and other contentcovers 2017 as well as the first half of 2018. Corporateinformation, unless otherwise indicated, is current as ofthe publication date.This report has been prepared in accordance with theGlobal Reporting Initiative (GRI) Standards: Core Optionand contains a GRI Index, which directs the reader to GRIrequired content within this report and on our website.We welcome feedback via email at voyacr@voya.com.Becoming America’sRetirement Company 1Leadership Viewpoint 2Evolving in a ChangingOperating Environment 4Becoming CorporateResponsibility Leaders 5Empowering Our People 6Dilemma: Diversity inFinancial Services 10Serving Our Clients 11Investing in Communities 14Dilemma: PersonalSavings Rate Decrease 17Protecting the Environment 18Assurance Statement 20Progress on CR 2020 Governance Commitments1Align reporting of CR performance with internationally1 accepted standards.Voya began reporting against the GRI Standards in 2017 withour 2016/17 CR Annual Report. As mentioned in the “BecomingCorporate Responsibility Leaders” section, a review of a selectionof other standards and frameworks is planned for 2018-2019to determine those that may be appropriate to incorporate intoour strategy.Become signatories to initiatives in areas such as human2 rights, environment, social and governance (ESG) considerationsin investing and other areas as appropriate to our business.Voya Investment Management became a signatory tothe Principles for Responsible Investment (PRI) in 2017.13 Expand the Voya Financial Board of Directors’ (via theNominating and Governance Committee) awareness andengagement in corporate responsibility.Structured engagement of this committee began with thepublication of the 2015 CR Annual Report. Further engagementis planned for implementation by 2020.4 Externally assure through third-party verificationrelevant areas of corporate responsibility annual reports.The 2016 and 2017 environmental data disclosed as partof our CR annual reporting has been externally verified.An analysis of the need to externally verify other areasof the report began in 2018, the outcomes of which areexpected by 2020.The completion of the fifth commitment in this section (regarding human and workplace rights) was reported in our 2016/2017 CR Annual Reportand therefore will not be included in future CR annual reports.2017/2018 Corporate Responsibility Annual Report
Becoming America’sRetirement Company Voya Financial, Inc. (NYSE: VOYA), helps Americans plan, invest andprotect their savings — to get ready to retire better. With a clearmission to make a secure financial future possible — one person,one family, one institution at a time — Voya’s vision is to beAmerica’s Retirement Company . We are equally committedto conducting business in a way that is ethically, economically,socially and environmentally responsible.12345678910Top 10Top 25copeU.S. managerof institutional taxexempt assets6CompanySRetirement planprovider 1 andmedical stop-losscoverage providerin the U.S.2Pensions & Investments magazineDefined Contribution Record KeepersSpecial Report, April 2018 (based ondata as of 9/30/17).MyHealthGuide newsletter rankings asof December 2017, based on number ofparticipants and sponsors (does not includemost managed healthcare providers).As of March 31, 2018.Includes year-round employee volunteeringfor nonprofits and year-round employeegiving during January 1, 2017 throughDecember 31, 2017.September 1 through September 30, 2017.Pensions & Investments magazine, MoneyManagers Directory, annual survey resultsas of December 2016.As of June 30, 2018.As of December 31, 2017.As of June 1, 2018.Bloomberg, performance since VoyaFinancial, Inc., May 1, 2013 initial publicoffering (IPO) through December 29, 2017. 528BAssets undermanagement andadministration7Helping 5.2Mpeople save forretirement throughemployer plans 8.6BRevenues8Investing 224 B14.3Mon behalf of companiesand individualsCustomers9e6,200Managing831,000 Employees347,000 Hours ofemployeevolunteering4 2.9MEmployeenonprofitdonations475%active lifeinsurance plansEmployeevolunteeringparticipation468%Employee GivingCampaign5 participationOne Voya Cultureancorm 0er f se1PckeaS to I n c rHelping5Memployed individualsin 4,000 activegroup policiesprotect financesServices and Solutions8VOYA154%S&P FinancialCompanies86%S&P 50069%PerformanceAwards and Recognition2017/2018 Corporate Responsibility Annual Report1
LeadershipViewpointDear Stakeholders,On May 2, 2018, Voya Financial celebrated its five-year anniversary as a publicly tradedcompany. In a relatively short period of time, Voya has accomplished a great deal –improving our adjusted operating return on equity by more than 700 basis points, goingfrom “bottom-quartile” to “top-quartile” performance; returning approximately 4 billion inexcess capital to shareholders; and achieving significant growth across our businesses.Since Voya became an independent company, its share price has meaningfullyoutperformed our peers as well as the S&P 500.At the heart of Voya’s performance are our people and culture. Voya is committed to: Being a lifetime partner for its customers and clients;Providing a diverse and energetic environment for its people;Offering an attractive long-term investment for shareholders; andOperating as a responsible corporate citizen committed to supporting communitiesand advancing society.This commitment is reflected in Voya’s governance structure. Our Board of Directors’Nominating and Governance Committee oversees environmental, sustainability andcorporate responsibility matters of significance to the company – enabling Voya to betteridentify risks, and seize opportunities, associated with environmental, social andgovernance (ESG) factors.This year’s corporate responsibility annual report discusses our employee-relatedinitiatives that support a high-performance culture and how we are leveraging innovationsin the financial services industry to better serve clients and address the evolving demandsof our stakeholders. It also touches on our participation in industry-leading initiativesto advance the ESG discipline and support long-termism as well as “patient capital,”investors who anticipate returns over the long-term. Additionally, given the changing sociallandscape in the United States, we have included stories about the challenges faced bya decrease in the personal savings rate and diversity challenges in the financial sector.Increasingly, all stakeholder groups – including employees, customers and investors –are placing a premium on companies with values aligned to theirs and that understand thebusiness benefit of incorporating corporate responsibility and sustainability. This plays toour strengths and the authentic character of the Voya culture and brand, and serves as akey differentiator for our company.Voya has been recognized for operating in a way that is ethically, economically, sociallyand environmentally responsible. For example, we are one of just two financial servicescompanies to concurrently earn a spot as one of the World’s Most Admired Companies,one of the World’s Most Ethical Companies and on the Bloomberg Gender Equality Index.As proud as our people are of what we’ve achieved so far, we’re really excited aboutwhat comes next.Rodney O. Martin, Jr.Chairman and Chief Executive Officer,Voya Financial, Inc.22017/2018 Corporate Responsibility Annual ReportLynne BiggarChair, Nominating and Governance Committee,Voya Financial Board of Directors; Chief Marketingand Communications Officer, Visa Inc.
Voya Financial Board ofDirectors Nominating andGovernance CommitteeThrough volunteerism, donations and scholarships,Voya’s focus on education and financial literacy ischanging the lives of people across the country.Lynne Biggar (Chair)Chief Marketing and CommunicationsOfficer, Visa Inc.BARRY GRISWELLJ. Barry GriswellFormer Chairman and Chief ExecutiveOfficer, Principal Financial GroupVoya’s commitment to corporateresponsibility begins with our boardmembers and management team.We believe that it makes Voya better whenwe leverage our core competencies infinance to solve societal issues and operateas a responsible, sustainable companywith a view on the long term.Joseph V. TripodiFormer Chief Marketing Officer,The Subway CorporationDeborah C. WrightFormer Chairman and Chief ExecutiveOfficer, Carver Bancorp, Inc.David ZwienerOperating Executive, The Carlyle GroupVoya Financial CorporateResponsibility and Diversity& Inclusion Executive CouncilRodney O. Martin, Jr.Chairman and Chief Executive OfficerNancy A. FerraraExecutive Vice President, Operationsand Continuous ImprovementChristine L. HurtsellersChief Executive Officer, InvestmentManagementCarolyn M. JohnsonChief Executive Officer,Annuities and Individual LifeCharles P. NelsonChief Executive Officer, Retirementand Employee BenefitsMargaret M. ParentChief Administrative OfficerChetlur S. RagavanChief Risk OfficerKevin D. SilvaChief Human Resources OfficerMichael S. SmithChief Financial OfficerPatricia J. WalshChief Legal OfficerDAVE ZWIENERIt’s no secret that diverse andadaptive cultures lead to betterbusiness performance. Voya fostersan inclusive culture that encouragesdiverse perspectives – to drivebusiness growth and employeeengagement.DEBBIE WRIGHTOur focus on people with specialneeds and their caregivers throughVoya Cares is aligned with ourvalues and our commitment toserve all Americans.We’re equipping people with theresources and products to betteradvance their financial well-being, whichcontributes to improved quality of life.CHARLIE NELSONCAROLYN JOHNSONVoya’s people demonstrate ourcommitment to the communitiesin which we live and work everyday through our volunteerism andcharitable contributions.KEVIN SILVAIncreasingly, the topic ofESG factors comes up in ourconversations with investors –it’s a topic that we’re proudto discuss.MIKE SMITHWe see the strategic benefitsof corporate responsibility everyday – from our focus on ContinuousImprovement to the innovation thatwe achieve with the input of diverseperspectives.NAN FERRARABeing recognized as one of theWorld’s Most Ethical Companiesreflects our commitment to earningthe trust of all of our stakeholders.TRISH WALSHWe are excited about the futureand the role that Voya can play inadvancing society as a responsiblecorporate citizen.MAGGIE PARENTWe value ESG factors as inputsto our investment processes andare developing new ESG solutionsto meet client demand for aligningtheir investment portfolios withtheir values.CHRISTINE HURTSELLERSWe recognize that the long-termviability of our society, the well-beingof our employees and the successof Voya depend on minimizing ourimpact on the environment.Voya’s commitment to disabilityinclusion reflects the strongcharacter of its brand.CHET RAGAVANJOE TRIPODI2017/2018 Corporate Responsibility Annual Report3
Evolving in a ChangingOperating EnvironmentThe financial services industry, historically very traditional in its approach, is experiencinga renaissance of sorts. We are seeing innovations that support productivity and efficiency,customer growth, customer experience and access to finance for underserved populations.The convergence of financial services trends with the increased demand on companies tooperate with a social and/or environmental purpose presents unique opportunities for Voya,and we are leveraging them in order to create corporate advantage and stakeholder value.With an increased focus by investors on integrating environmental,social and governance (ESG) factors into the investment process,companies are disclosing more details about their corporateresponsibility/ESG practices and resulting performance. There isalso more emphasis on corporations’ long-term plans and howESG factors positively affect the bottom line. Chief executiveofficers (CEOs) from large investment houses have written letters 1to the boards and CEOs of their invested companies urging theintegration of social and environmental purpose into theirbusiness strategy and operations. Additionally, we have seenunprecedented adopted shareholder resolutions2 that requireenergy companies to disclose how they are adapting to theeffects of climate change on their business.Behavioral FinanceFintech AutomationLong-TermismESG Patient CapitalIn September 2017, anticipating the industry movement, Voya’sChairman and CEO Rod Martin presented at the CECP StrategicInvestor Initiative (CECP SII) CEO Investor Forum – a series ofevents where CEOs present long-term plans to investors todemonstrate greater sustained earnings power stemming fromlonger-term thinking. He spoke of our transformation since ourIPO in 2013 and how we have developed our culture and ourhuman capital practices to support the growth plans of thecompany. Additionally, Christine Hurtsellers, CEO of VoyaInvestment Management, signed the CECP SII Investor Letter toprovide guidance to presenting companies on topics of interestto long-term “patient capital” investors who anticipate returnsover the long-term.The increasing popularity of the study of behavioral financepiqued our interest and, along with our continued pursuit ofexcellence in client service, led to the launch of the VoyaBehavioral Finance Institute for Innovation. This initiative wasdesigned to gain deeper insights into the decisions of Americans42017/2018 Corporate Responsibility Annual Reportregarding their financial and retirement planning activities.Through a series of pioneering studies at the Institute, wehave been testing and developing large-scale solutions capableof helping people save more and achieve better retirementoutcomes. The Institute’s work is differentiated by its abilityto merge behavioral science with the speed and scale of thedigital world. Partnerships with leading behavioral economistsand academics, along with Voya’s data-centric approach tounderstanding and measuring savings behavior, will continueto position the Institute at the forefront of behavioral financeresearch. Our first white paper, written by Shlomo Benartzi,senior academic advisor for Voya, examines the two primarystyles that people use to make decisions that influence boththe short- and long-term success of a retirement plan. And ourworking paper, “How Do Consumers Respond When DefaultOptions Push the Envelope?”3, has garnered attention.Fintech – or financial technology – has transitioned from systemsthat improved the back office to software and modern technologythat transform the full delivery of financial services to both individualconsumers and institutions. Considering our hyper-connecteddigitalized lifestyles, Voya is working to meet the needs of ourcustomers by automating the way we operate in order to increasequality customer interactions. By implementing the new technology,Robotic Process Automation, we have been able to streamline andrefine several of our manual processes to the benefit of employeeproductivity and improved customer experience. For details, see“The Future of Automation at Voya” story in the “Serving OurClients” section of this report.Additionally, we are taking a leadership role in key industryinitiatives that help guide our industry toward more sustainablegrowth. Please see the “Becoming Corporate ResponsibilityLeaders” section in this report for details. We believe by keepingour eye on the evolution of our industry, and implementing theaforementioned initiatives, we will remain competitive in our corefinancial services businesses.1“A Sense of Purpose” BlackRock CEO Larry Fink, “An open letter to directors of publiccompanies worldwide” Vanguard CEO Bill McNabb and “Incorporating Sustainability IntoLong-Term Strategy” State Street Global Advisors President and Chief Operating OfficerRon O’Hanley.2 “Financial firms lead shareholder rebellion against ExxonMobil climate change policies”,Washington Post, May 31, 2017; “Occidental Holders Override Board in Approving ClimateProposal”, Bloomberg, May 12, 2017; “PPL shareholders pass resolution for climatestrategy assessment”, UtilityDive, May 23, 2017.3 By John Beshears, Shlomo Benartzi, Richard T. Mason and Katherine L. Milkman, Oct 2017(SSRN#3050562).
Becoming CorporateResponsibility LeadersIn 2018, we entered the third year of our revised CR pillars,derived from our 2016 materiality assessment1 to broadenour view of CR to include ESG and nontraditional financialfactors that support our bottom line.investing and lending portfolios. SBTi provides companies witha clearly defined pathway that specifies how much and howquickly they need to reduce their greenhouse gas emissionsin order to align with the Paris Agreement, a commitmentamong governments for the de-carbonization required to keepthe global temperature increase below 2 degrees Celsiuscompared to pre-industrial temperatures.Chairman and CEO Rod Martin speaksat Bloomberg Business of Equalityevent in New York in May 2018.We made strides in advancing the integration of CR strategyinto our business operations and learned a great deal about theinherent challenges of integration and how to overcome them.And, we completed six of our 23 CR Commitments, ahead ofthe 2020 deadline. Given these learnings, our progress duringour five years as Voya Financial2 and our passion for educating,we have taken on roles outside Voya to help advance the CRand ESG discipline and pave the way for others to evolve theirown strategies.Voya’s Office of Corporate Responsibility has representationon the advisory committee of the CECP SII, bringing both CRpractitioner and ESG investor perspectives. As CECP (a CEO-ledcoalition) works to advance business as a force for good insociety, CECP SII is an extension of this vision, creating a forumwhere CEOs present long-term plans to investors to demonstrategreater sustained earnings power stemming from longer-termthinking. We believe that through this initiative, investors willgain a more complete picture of a company’s managementcapabilities, thereby contributing to expanded viewpoints on thevaluation of a company’s stock. We are proud to help shape themovement toward long-termism.Voya is part of a coalition working with the Science BasedTargets initiative (SBTi) to help develop methods, frameworksand implementation guidelines for financial institutions to setscience-based greenhouse gas (GHG) emissions targets forVoya is also part of a coalition of companies working with CDP(formerly, the Carbon Disclosure Project), to help develop thefinancial services sector questionnaire that will be aligned withthe Task Force on Climate-related Financial Disclosures (TCFD)recommendations. With this initiative, CDP, a disclosure systemthat fosters the measurement and management of corporateenvironmental impacts, is seeking to standardize the financedemissions disclosure for the sector by defining key indicators.We see the next step in the evolution of our CR pillars as onewhere we strategically review the plethora of standards andframeworks to determine the ones that are most applicable to ourindustry, geographies and both our business and CR goals andtargets. While we report against the GRI Standards, many others,such as the TCFD, Sustainable Accounting Standards Board,United Nations Global Compact, United Nations SustainableDevelopment Goals, CDP and Dow Jones Sustainability Index,influence our current strategy and its implementation. The resultsof our review will determine whether there is a need to formallyincorporate a selection of them.Please also see our expanded Governance -corporate-responsibility/governance) and Stakeholder Engagement ng-our-clients/stakeholderengagement) web pages for more details on the managementof our CR strategy.6completed CR 2020 Commitments1See our materiality web page for details at /about-corporate-responsibility/materiality.2 Formerly ING U.S., Voya Financial, Inc. separated from ING Groupthrough an initial public offering on May 2, 2013.2017/2018 Corporate Responsibility Annual Report5
Empowering Our PeopleAs a company with a mission to help all Americans retire better,our success lies in earning the trust of our customers each andevery day. That is why Voya empowers our people with targetedtraining, fosters a performance-driven, diverse culture and iscommitted to living our values.Voya Cares Program Continues ItsMomentum to Support the Special Needsand Disabilities CommunityOur Voya Cares program, our commitment to helpingAmericans with special needs and disabilities and their caregiversplan, invest and protect their financial future, is an example ofhow we are a different kind of company. We are impacting thelives of people in this underserved community by helping themthink differently, and holistically, about their financial future.The program has made the following great strides among ouremployees, in the greater business community, and withinlocal communities:Empowering employees: Launched a Disabilities and Special Needs Employee ResourceGroup to lead efforts toward supporting and employing thosewith special needs and disabilities, and their caregivers. Trained employees to help integrate support for the specialneeds and disabilities community into business operations. Added resources to the health and benefit offerings. Launched the Optum Special Needs Navigator resource toprovide access to a licensed behavioral clinician to supportspouses and/or dependents.Leading the industry: Launched a resource center to assist customers with onlineenrollment. Enhanced web-based tools, particularly the myOrangeMoney retirement savings calculator, featuring help for the specialneeds community. Published an accessibility statement and ensured adherenceto web accessibility guidelines. Launched an education program for Voya’s financial advisorsregarding service to the special needs community. Conducted a media outreach campaign to educate financialadvisors and parents of children with special needs, appearingin The Wall Street Journal, The Huffington Post and U.S. Newsand World Report.62017/2018 Corporate Responsibility Annual ReportSupporting local communities: Hosted financial education sessions for young leaders incollaboration with the U.S. Business Leadership Network(USBLN), a nonprofit working to drive disability inclusionin the workforce. Partnered with Special Olympics on the Invest in SomethingSpecial campaign and raised 520,000 for local chapters. Presented at the National Down Syndrome Society (NDSS)annual conference and sponsored NDSS’ 23rd Annual NewYork City Buddy Walk in Times Square and Central Park. Met with House Rules Committee Chairman Pete Sessionsand House Republican Conference Chair Cathy McMorrisRodgers to encourage legislation that supports the specialneeds community. Publicly announced the launch of our Voya Cares programat the ringing of the New York Stock Exchange’s (NYSE)225th anniversary opening-bell celebration, recognizinga select group of USBLN. Became a Going for the Gold partner of USBLN. Participated on a United Nations’ panel to discussemployment opportunities for adults with specialneeds/disabilities on World Down Syndrome Day. Attended the CAREERS & the disABLED Magazine’sCareer Expo for People with Disabilities in New York,bringing companies and government agencies togetherwith prospective employees.
Empowering Our PeopleVoya Investment Management DevelopsWell-rounded EmployeesAt Voya, diversity includes and goes beyond gender, religion,sexual orientation and race. It encompasses the differences withwhich we are born and those we acquire throughout our lives.Diversity of thought is a key component to both empowering ourpeople and better serving our clients. Our Voya InvestmentManagement (IM) business lives this principle every day.Voya IM differentiates itself from other asset managementorganizations through its focus on tuition reimbursement,manager development, robust succession planning andperformance management programs focused on both “what”employees accomplish and “how” they accomplish it. In addition,two new key initiatives emphasize our continual investment inour greatest asset – our people.Launched two years ago, the Enneagram personalityassessment helps IM to better understand team dynamics.Individuals within a team are assessed via an online inventory andgain an understanding of motivations, core values and blind spotsof nine different personality types. With this data, teams betterunderstand the different styles of their teammates and themselves.They learn how to do the following: Effectively leverage different personalities to accomplish goals.In addition, IM believes in empowering employees at all levelsand functions to better succeed in the challenging world ofasset management. To complement the program that sponsorsemployees who want to earn their Chartered Financial Analyst(CFA) certificate, in 2017, IM launched the CFA InvestmentFoundations program, offering financial education to IMprofessionals outside of investment teams.The program features both online and in-person modules targetedto employees in information technology, human resources, legal,marketing and other functional departments. This six-monthintensive education is designed to provide participants with a clearunderstanding of the essentials of the investment managementindustry. The program covers seven topic areas across 20 chaptersand culminates with a comprehensive knowledge exam offeredby the CFA Institute. As of May 2018, Voya IM had 149 CFAcharterholders and 114 employees who have either earned, or are inthe process of earning, their CFA Investment Foundations Certificate. Determine the most effective communication modes to reachpeople in each personality type. Round out project teams with diverse personality types tofoster innovative client solutions.As of May 2018, 61 percent of IM’s employees have completedan Enneagram training session, with plans to continue to roll outthis program across the remaining employee population.61%IM employeescompletedEnneagram training149CFA charterholders114CFA InvestmentFoundationscertificate holders/candidates2017/2018 Corporate Responsibility Annual Report7
Empowering Our PeopleSustaining a High-performing CultureFinancial Wellness Engages Key StakeholdersHuman capital is key to fostering Voya’s high-performanceculture. Our talent review process is focused on putting theright people in the right positions at the right time to build asustainable leadership pipeline. To do this, our successionplanning activities include: Ensuring that we have the best possible talent in key businesssuccess-critical positions. Assessing our leaders based on leadership competencies,focusing on both the “what” and the “how”.1 Creating succession plans for key critical roles.Voya’s Financial Wellness program is an example of how we areinvesting in our people by empowering them to take control oftheir personal finances. Established in 2016, the program isdedicated to helping employees achieve more balanced livingfor today, while preparing financially for tomorrow. The effortpromotes financial wellness capabilities focused around six pillarsof financial life: Protection, Spending and Saving, EmergencySavings, Retirement, Debt Management, and Other Savings Goals. Identifying, developing and retaining a diverse pool of top talent,rising stars and emerging leaders. Increasing talent management capabilities of business leadersand HR staff through the use of common tools and language. Validating talent review processes for consistency andcalibrating top talent across Voya’s businesses and functions.We focus on key outcomes stemming from the following: SWOT (strengths, weaknesses, opportunities, threats) analysisin each major business and function. Succession plans for the top four layers of the organization(and mission-critical positions) including scans of potentialexternal candidates in the event of turnover. Determination of top internal talent with the highest performanceand potential for growth. Vulnerability analysis to assess leaders with the highest flightrisk and impact of departure.Our philosophy is to hire the best person for the role by firstlooking internally, but also to look externally to ensure we havea balance between internal talent with institutional knowledgeand external talent with a different perspective. We have foundthat this balance produces a culture of continuous improvement.Our goal is to make leadership development an integral partof personal career development and employee engagement,ultimately improving our business performance.In 2017, 94 percent of employees completed their mid-yearreview process, and 99 percent of employees completed theyear-end process.In 2017, we continued to evolve Financial Wellness efforts witheducation and resources to help employees relieve the stressof financial planning. This investment aims to boost the overallwell-being of employees, increasing their health, productivityand engagement. Financial Wellness has been incorpora
Becoming America's Retirement Company One Voya Culture Services and Solutions8 Performance Awards and Recognition 6,200 Employees3 Voya Financial, Inc. (NYSE: VOYA), helps Americans plan, invest and
