Integrated Report
Integrated Report
20192019
Index
Letter from the CEO · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 3
About the Report · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 4
Globant at a Glance · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 6
Innovative Approach · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 10
High Performance · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 15
Global Talent · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 20
Unique Culture · · · · · · · · · · · · · · · · · · · ·· · · · · · · · · · · · · · · · · · · · · · · · · · · · · 25
Additional Information · · · · · · · · · · · · ·· · · · · · · · · · · · · · · · · · · · · · · · · · · · · 38
Sustainability Index · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 42
Report profile · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 50
Letter From The CEO
As we start 2020, I want to take this opportunity to share
2019 was also a terrific year in terms of expansion. We
some thoughts with you. Every year brings us closer to our
keep committed to our goal of bringing opportunities to
purpose: we are here to make the world a better place by
where the talent is.
transforming organizations and people’s lives. We know
that we want to make our mark on the world and we need to
· More than 4,500 new Globers joined the company, growing
continue making every effort to put this vision come true.
our headcount more than 40% year-over-year.
As I look back at 2019, I can see that it was the year to go
· We inaugurated offices in Paris, Bogota, Guadalajara and
beyond superficial transformations and truly reinvent our-
Winston-Salem, among other cities.
selves. Let me do a brief recap of what happened last year
· Two talented companies joined our team as we acquired
and of how we are working to get closer to our purpose:
Avanxo and Belatrix to reinforce our positioning as leaders in
digital and cognitive transformations.
The revenue for 2019 increased to $659.3 million,
· We launched the “Code your Future” program where we ran
a robust 26.2% year-over-year growth.
70 programs that trained over 1,000 people and additionally
offered 500 scholarships focusing mainly on training women.
We expanded our consulting capabilities through
our Business Hacking Studio to help organizations
Last but not least, we introduced Be Kind. Our way to trans-
rethink their businesses.
form organizations and people's lives with kindness. This initia-
tive commits Globant and Globers to be kind to peers, to hu-
Augmented Globant was born as a way to bring AI
manity and to the planet by guaranteeing diversity, gender
to the whole company to increase Globant's
equality, inclusion and becoming a carbon neutral company.
capabilities.
Our purpose calls for a disruptive company and we will
keep on making our best efforts as we work towards our
Thanks to our customer’s trust, we were able to
vision: to Reinvent the Industry and our client's businesses.
provide profound transformation to a wide range
Thanks for your continuous trust. It's time to go for more!
of companies, redefining financial services, rede-
signing travel experiences, creating new standards
in manufacturing, building new forms of entertain-
ment, and transforming companies inside out.
Keep rocking,
Martín Migoya
Co-Founder, Chairman and CEO
@migoya
3
About The Report
This report has been prepared in accordance with the Integrated Re-
porting Framework, the GRI Standards: Core option (Global Reporting
Initiative), and taking as reference the SASB standards for Software and
IT services.
In addition, Globant’s commitment to the Sustainable Development
Goals (SDG) is explained in this report which is based on the six SDG we
identified related to our model: quality education; gender equality; decent
work and economic growth; industry, innovation and infrastructure; envi-
ronmental consciousness; and partnership for the goals.
Finally, and following the general concern about the global climate crisis,
we improved the mechanism for estimating our energy consumption and
greenhouse emissions. As a result, we redesigned our method. We imple-
mented the new approach in 2019, as the baseline to initiate ambitious
projects related to a full transition to renewable energy consumption in a
short period. Also, the improvement in the measuring of these environ-
mental variables enables us to design a pathway for neutralisation of
carbon emissions not only in our corporate boundaries but also the Scope
3 emissions related to our travel activity and individual Globers’ commuting.
Globant’s Sustainability Council
Sustainability Framework
S
L
A
T
I
P
A
C
Y
B
INNOVATIVE APPROACH
HIGH PE RFORMANCE
GLOBAL TALE NT
UNIQUE CULTURE
4
Sustainability Framework
B Y C A P I T A L S
I N P U T 1
I N P U T 2
I N P U T 3
I N P U T 4
INNOVATIVE APPROACH
HIGH PE RFORMANCE
GLOBAL TALE NT
UNIQUE CULTURE
Engineering, Innovation
& Design
Podular Structure
Augmented Globant
INNOVATIVE APPROACH
Business Hacking Studio
Augmented Retention
Augmented Recruting
Augmented Coding
+$659.3M Revenue
2.29 Adjusted EPS
+11,800 Globers
Be kind by Globant
17 Countries
G L O B A N T ’ S B U S I N E S S M O D E L
HIGH PE RFORMANCE
GLOBAL TALE NT
26.2% Revenue Growth YoY
41% Headcount Growth YoY
UNIQUE CULTURE
Renewable energy and
carbon neutral plan
Gender equality and
inclusiveness
AI Manifesto
O U T C O M E 1
O U T C O M E 2
O U T C O M E 3
O U T C O M E 4
5
Canada
United States
Mexico
N O R T H
A T L A N T I C
O C E A N
N O R T H
P A C I F I C
O C E A N
Colombia
Peru
Brazil
Chile
Uruguay
S O U T H
A T L A N T I C
Argentina
O C E A N
S O U T H
P A C I F I C
O C E A N
A R T I C O C E A N
UK
Belarus
Luxembourg
Spain
France
Romania
Globant at
Globant at
a glance
a glance
UAE
India
I N D I A N
O C E A N
P A C I F I C
O C E A N
11,855
37
17
55
Globers
Cities
Countries
Locations
S O U T H E R N O C E A N
6
Governance
B O A R D O F D I R E C TO R S
S E N I O R M A N A G E M E N T
Martín
Migoya
Chairman of the Board,
CEO & Co-Founder
Martín Gonzalo
Umaran
Director, Chief of Staff &
Co-Founder
Guibert Andrés
Englebienne
Director, CTO & Co-Founder
Mario Eduardo
Vázquez
non-executive
independent Director(1)(2)(3)
Francisco
Álvarez-Demalde
non-executive
independent Director
Martín
Migoya
Chairman of the Board,
CEO & Co-Founder
Martín Gonzalo
Umaran
Director, Chief of Staff &
Co-Founder
Guibert Andrés
Englebienne
Patricia
Pomies
Director, CTO & Co-Founder
Chief Delivery Officer
Juan
Urthiague
Chief Financial
Officer
Marcos
Galperín
non-executive
independent Director(1)(2)
Richard
Haythornthwaite
non-executive
independent Director
Philip A.
Odeen
Linda
Rottenberg
non-executive
independent Director(1)(2)(3)
non-executive
independent Director(1)
Wanda
Weigert
Chief Brand Officer
Mercedes
Mac Pherson
Chief Diversity &
Talent Officer
Sol Mariel
Noello
General Counsel
Gustavo
Barreiro
Chief Information
Officer
Yanina Maria
Conti
Chief Accounting
Officer
Younger than 45
Younger than 45
Between 45 & 55
Between 45 & 55
Older than 55
Older than 55
Younger than 40
Between 40 & 50
Older than 50
11%
11%
56%
56%
33%
33%
30%
40%
30%
(1)Audit Committee, (2) Compensation Commitee
(3) Corporate Governance anda Nominating Commitee
89% 11%
50% 50%
7
Board Practices
Corporate Governance Practices
The company is managed by our board of directors which is vested with the
Our corporate governance practices are governed by Luxembourg law (particu-
broadest powers to take any actions necessary or useful to fulfill our corporate pur-
larly the law of August 10th, 1915, on commercial companies as amended) and our
pose with the exception of actions reserved by law or our articles of association to
articles of association. As a Luxembourg company listed on the NYSE, we are not
the general meeting of shareholders. Our articles of association provide that our
required to comply with all of the corporate governance listing standards of the
board of directors must consist of at least seven members and no more than fifteen
NYSE for U.S. listed companies. We, however, believe that our corporate gover-
members. Directors may be re-elected for one or more four-year terms. Directors
nance practices meet or exceed, in all material respects, the corporate governance
appointed to fill vacancies remain in office until the next general meeting of share-
standards that are generally required by the NYSE for U.S. listed companies. In this
holders. Further considerations about practices (vote, majorities, management, con-
respect, we have included a description of our corporate governance practices
flicts of interest, and other provisions) are included in the annual report in form 20F
and we have indicated the significant ways that these differ from the corporate
(board practices section).
Compensation
governance standards required for listed U.S. companies by the NYSE in our
annual report on form 20F, in the Corporate Governance Practices section. During
2019 we have had no confirmed incidents of corruption.
Compensation policy for Directors and Senior Management is composed of a
fixed salary and share based compensation pursuant to the Equity Incentive Plan
Committees
which includes RSU and other equity awards. The methods and composition of the
Our board of directors has established an audit committee, a compensation
incentive plan are described in detail in the annual report in form 20F. Neither we
committee and a corporate governance and nominating committee. Our board of
nor our subsidiaries maintain any directors’ service contracts providing for benefits
directors may from time to time establish other committees.
upon termination of service. We do not pay or set aside any amounts for pension,
retirement or other similar benefits for our officers or directors.
Commitees
Advisory
Board
BOARD
Sustainability
Council
TOP
MANAGEMENT
More info on
www.globant.com/about/management-team
(1) Audit committee: Oversees our corporate accounting and financial reporting process (2)
Compensation committee: Reviews, recommends and approves policy relating to compensa-
tion and benefits of our officers and directors, administers our common shares option and
benefit plans and reviews general policy relating to compensation and benefits. (3) Corporate
Governance and Nominating Committee: Identifies individuals qualified to become directors;
recommends to our board of directors director nominees for each election of directors;
develops and recommends to our board of directors criteria for selecting qualified director
candidates; considers committee member qualifications, appointment and removal; recom-
mends corporate governance guidelines applicable to us; and provides oversight in the
evaluation of our board of directors and each committee.
8
Risks and
Opportunities
Our Annual Report, filed with the SEC under Form 20f,
covers the risks and opportunities in detail under the headline
‘Risk Factors’. A summary of risks is presented in the document
available here.
Detailed management approach on risks, challenges and op-
portunities is developed in this report on a topic-by-topic area.
Ethics and Compliance
Under NYSE standards, listed companies must adopt and
In the same section, we also publish our whistleblowing
disclose a code of business conduct and ethics for directors,
contacts where the breaches of the code of ethics can be
officers and employees, and promptly disclose any waivers
communicated without any risk of retaliation. Also, we pub-
of the code for directors or executive officers. Effective as of
lish in that section, our Modern Slavery Statement issued
July 23, 2014, we adopted a code of business conduct and
persuant to the UK Modern Slavery Act from the primary
ethics applicable to our principal executive, financial and
subsidiaries of Globant for the United Kingdom, to account
accounting officers, and all persons performing similar func-
for our efforts to mitigate all types of modern slavery in our
tions. A copy of that code is available on our website.
business or supply chain.
Future Outlook & Business Perspectives
We are living in a fantastic moment for technology. Never
before in history did we have two massive and disruptive technolo-
gy revolutions are happening at the same time.The digital and cog-
nitive revolutions are affecting how companies connect with con-
sumers and employees as well as providing opportunities to make
huge gains in efficiency.
Today's users, whereas consumers or employees, move fast
and are keen to interact with their digital ecosystem anywhere and
anytime, in a painless, fast, relevant, smart and restriction-free way.
They demand personalized, seamless and frictionless experiences
that will simplify their lives. We are also facing an abundance of
demand for more intelligent and human-like behavior and tech-
nology on the market. These revolutions are leveraging new tech-
nologies that did not exist or were not sufficiently mature until a
few years ago, such as AI, UX, IoT, Cloud Computing and Big Data.
While the traditional IT space is growing between 3% and 4% a
Transforming Organizations
While companies look to boost their consumer
experience, they are also trying to transform them-
selves internally. For many, it becomes difficult to
build a digitally-native culture from scratch or change
the status quo of current IT departments. It is hard
to be successful using old-fashioned practices. As
Forrester points out, transformation starts with de-
veloping the right set of strategy choices and the
ability to help shape digital thinking and a digital cul-
ture that supports continuous innovation. It is
cemented through effective change management(1).
Our experience as a pure play in the digital and
cognitive arena makes us an ideal partner to help
year, the digital space is growing at 20%(1) a year. In comparison, the
organizations with more rigid structures.
cognitive space thrives at an amazing rate of more than 60%. And
we are a pure-play in these two spaces.
(1) January 16, 2019 - Morgan Stanley Research. IT Services | North America: "2019 Outlook: Secular and Cyclical Trends Continue".
(2) Source: https://www.forrester.com/report/Now+Tech+Digital+Business+Transformation+Accelerators+Q4+2018/-/E-RES143417
9
Innovative Approach
Empowering organizations for a digital and cognitive revolution
We are a digitally native company where innovation, design and engi-
neering meet scale. Globant is a disruptor in the professional services
arena that leverages the latest technologies and methodologies in the
digital and cognitive space to help organizations transform in every aspect.
Through Artificial Intelligence, we have reinvented digital transforma-
tion by focusing on delivering a new approach to generating real busi-
ness impacts. We base our growth and differentiation around new para-
digms: at Globant, a podular and autonomous company structure
pushes innovation. Moreover, technology-savvy teams, entrepreneur-
ship and agility drive efficiency to our customers through a digital and
cognitive evolution.
Main
differentiators
1 E N G I N E E R I N G , I N N O V AT I O N
& D E S I G N M E E T S C A L E
2
3
P O D U L A R S T R U C T U R E
A U G M E N T E D G L O B A N T
11
1 E N G I N E E R I N G ,
I N N O V AT I O N
& D E S I G N
M E E T S C A L E
We create software products that emotionally connect
our customers with millions of consumers and employees,
and we work with them to improve their efficiency.
To deliver solutions for a digital and cognitive transforma-
tion, you need a completely different approach than tradi-
tional IT projects. It all starts by cultural behavioral and orga-
nizational change and then developing solutions like suc-
cessful software companies in Silicon Valley do. For this, you
need the right blend of engineering, design and innovation,
and we are the first players to deliver it at scale.
We do that through our Studios, deep pockets of exper-
tise on the latest technologies and trends. Our Studio model
fosters creativity and innovation while allowing us to build,
enhance and consolidate expertise around a variety of
emerging technologies. This approach focuses first on tech-
nology; and second on industry depth. Studios deliver
knowledge cross-pollinating insights from different indus-
tries to create disruptive ideas.
O R G A N I Z AT I O N A L F I T N E S S
P U S H I T L I V E
Business
Hacking
Stay
Relevant
Future of
Organizations
Agile
Delivery
Cloud Ops
Digital
Content
Quality
Engineering
Media OTT
Cybersecurity
B U I L D & E V O LV E
A I P R O C E S S A U TO M AT I O N
Scalable
Platforms
Continuous
Evolution
IOT
UI
Engineering
Data &
Analytics
Intelligent
Enterprise
Gaming
Mobile
Artificial
Intelligence
Process
Automation
Blockchain
Conversational
Interface
S T R AT E G Y
Product
Acceleration
Design
12
2 P O D U L A R
S T R U C T U R E
We have mastered a unique way of organizing our teams
known as the Agile Pod model. Driven by a culture of self-reg-
ulated teamwork, each team—or Pod—works directly with
our customers with a full maturity path that evolves as they
increase speed, quality and autonomy. Each Pod defines
their name, pledges to a customer-centric constitution, and
sets clear goals that will drive their maturity evolution tied to
our customer success.
Opposed to the traditional IT services structures, Glo-
bant’s podular model eliminates the need for command and
control methods and provides teams with full independence
in customer interaction. It is an advanced and more autono-
mous structure that ultimately brings:
Customer centricity
Closeness to the frontline
Fast decision-making abilities
Improved accountability
Elimination of bureaucracy and unnecesarry processes
And the most important part: savings are delivered to
clients due to sustained productivity boosts as Pods begin to
operate at a higher maturity level.
13
3 A U G M E N T E D
G L O B A N T
As the digital and cognitive revolutions
change the landscape of our world, it is crucial to
rethink how organizations must adapt and
evolve. We have launched the “Augmented Glo-
bant” initiative to embrace the power of artificial
intelligence to augment Globant's capabilities
and reinvent the technology industry.
To create and maintain an outstanding team it's neces-
We are embracing artificial intelligence to better detect
sary to craft a unique culture that can help recruit and retain
and predict talent, performance and cultural fit. Using com-
the best global talent. StarMeUp OS is a system that helps us
puter vision, speech recognition and natural language under-
understand and visualize the human psyche within the orga-
standing techniques, we are developing a tool that analyzes
nization. We can discover cultural leaders, influencers, trend
the videos of HR interviews, and returns an insight report.
generators and even disengaged teams. This information is
This report shows information about the candidate, and how
useful for multiple goals: from retention to talent detection,
he/she responds to Globant's Talent Manifesto, our defini-
from fostering a company’s growth to promoting integration
tion of Core Competencies (FCI3), and our Corporate Values.
between two separate countries. It helps managers make
the proper decisions that will foster culture and values, align-
ing large companies to pursue a unified vision. With this
intelligence, we are able to better identify rising stars, nur-
ture talent, and anticipate team members that are at risk.
Our belief about coding is that it is both a science and an
art. Through Augmented Coding, we have created AI-pow-
ered tools to enhance the coding experience and augment
our developers' capacity. Our augmented coding products
allow our collaborators to find code within our project
repository, accelerating ramp-up times and improving quali-
ty on delivery. Augmented Coding enables our developers to
quickly build and deploy production-ready applications and
accurately traverse complex coding environments.
14
High Performance
The inner force that makes ourselves unique
P E R F O R M A N C E
F I N A N C I A L H I G H L I G H T S
Salaries
$452.9M
69%
2018
$356.8M
68%
Reinvested amount
$54M
8%
2018
$51.6M
10%
$659.3M
Economic value generated
2019
$522.3M
2018
Taxes
$31.2M
5%
2018
$22.2M
4%
Depreciations & interests
$27.8M
2018
$26.1M
4%
5%
Other costs of operations
$93.4M
Chile
17%
2018
$65.6M
13%
R E V E N U E ( $ M )
$659
A D J U S T E D N E T
I N C O M E M A R G I N ( % )
A D J U S T E D D I L U T E D
E P S
$2.29
$522
$413
$323
$254
13.1%
12.8%
12.0%
12.2%
11.1%
$1.74
$1.28
$1.09
$0.93
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
C L I E N T S BY R E V E N U E
C O N T R I B U T I O N 2 0 1 9
C L I E N T S BY V E R T I C A L 2 0 1 9
Travel & Hospitality
14.1%
39.5%
26.1%
Media &
Entertainment
23.7%
Banks, Financial Servicies
& Insurance
21.8%
Technology
& Telecommunications
13.4%
11.2%
Top 1
Top 5
Top 10
Other verticals
2.9%
Professional services
11.1%
Consumer, Retail
& Manufacturing
13%
50
25
0
Assets
$ 687.8M
Liabilities
$ 249.1M
Net Worth
$ 438.7M
$ 437.1M
2018
$ 99.2M
2018
$ 337.9M
2018
R E V E N U E BY G E O G R A P H Y 2 0 1 9
C L I E N T S BY C U R R E N C Y 2 0 1 9
Europe
North America
Latam & others
7.1%
75.3%
17.6%
USD
EUR
4.3%
Other
10.2%
85.5%
16
C O N S O L I D AT E D S TAT E M E N T S O F P R O F I T O R
LO S S A N D O T H E R C O M P R E H E N S I V E I N C O M E
Year ended December 31 in thousands except percentages and per share data
O T H E R D ATA
Adjusted gross profit
Revenues(1)
Cost of revenues(2)
Gross profit
2018
2019
Adjusted gross profit margin percentage
522,310
(318,554)
100.0%
-61.0%
659,325
(405,164)
100.0%
-61.5%
Adjusted selling, general and
administrative expenses
203,756
39.0%
254,161
38.5%
2018
212,026
40.6%
2019
266,487
40.4%
(104,485)
(131,090)
Selling, general and administrative expenses(3)
(133,187)
-25.5%
(172,478)
-26.2%
Net impairment losses on financial assets(4)
Other operating (expenses) income, net(5)
Profit from operations
Gain on transactions with bonds(6)
Finance income
Finance expense
Finance (expense) income, net(7)
Share of results of investments in associates(8)
Other income & expense in net(9)
(3,469)
(306)
66,794
-
11,418
(16,968)
(5,550)
-
6,220
-0.7%
-0.1%
12.8%
0.0%
2.2%
-3.2%
-1.1%
0.0%
1.2%
Profit before income tax
67,464
12.9%
Income tax(10)
Net income for the year
(15,868)
51,596
-3.0%
9.9%
(228)
(720)
0.0%
-0.1%
80,735
12,2%
1,569
13,643
(26,801)
(13,158)
(224)
(114)
69,032
(15,017)
54,015
0.2%
2.1%
-4.1%
-2.0%
0.0%
0.0%
-2.3%
8.2%
(1) Includes transactions with related parties of $1,419 and $5,937 for the years ended December 31, 2019 and 2018, respectively.
(2) Includes depreciation and amortization expense of $7,350 and $4,022 for the years ended December 31, 2019 and 2018, 2017, respectively. Also includes share based com-
pensation for $4,976 and $4,248 for the years ended December 31, 2019 and 2018, respectively.
(3) Includes depreciation and amortization expense of $16,905 and$16,521 for the years ended December 31, 2019 and 2018, respectively. Also includes share based compen-
sation of $14,912 and $8,665 for the years ended December 31, 2019 and 2018, respectively.
(4) Includes impairments of tax credits of $48 for the year ended December 31, 2018, and recoveries related to reversals of allowances for impairments of tax credits of $47 for
the year ended December 31, 2019. Also includes a loss of $275 and $3,421 on impairment of trade receivables for the years ended December 31, 2019 and 2018, respectively.
(5) Includes an impairment of intangibles assets of $720 and $306 for the years ended December 31, 2019 and 2018, respectively.
(6) Includes a gain of $1,569 from transactions with Argentine sovereign bonds denominated in U.S. dollars acquired in the U.S. market with cash received from repayments of
intercompany loans and capitalizations received by our Argentine subsidiaries for the year ended December 31, 2019.
(7) Includes foreign exchange losses, net, of $8,841 and $7,437 for the years ended December 31, 2019 and 2018, respectively.
(8) Includes a loss of $224 related to our share of the loss from our investment in Acamica, described in note 11.2 to our audited consolidated financial statements.
(9) Includes gains and losses explained in note 28.9.1, 28.9.2, 25.2 and 11.2 to our audited consolidated financial statements.
(10) Includes deferred tax gains of $4,310 and $7,456 for the years ended December 31, 2019 and 2018, respectively.
Adjusted selling, general and administrative
expenses margin percentage
Adjusted profit from operations
Adjusted profit from operations margin
percentage
Adjusted net income for the year
Adjusted net income margin percentage
for the year
C A L C U L AT I O N O F A D J U S T E D
D I L U T E D E P S
Adjusted net income
Diluted shares
Adjusted diluted EPS
20.0%
84,334
16.1%
63,737
12.2%
2018
$ 63,737
36,685
$ 1.74
19.9%
111,991
17.0%
86,094
13.1%
2019
$ 86,094
37,674
$ 2.29
Please note that we follow IFRS accounting rules in our financial statements. You will find a reconciliation of IFRS and Non-IF-
RS (or adjusted) measures in the section “Reconciliation of Non-IFRS Financial Data” included in our 20F.
17
M A R K E T C A P V S S TO C K P R I C E
$ end of the year
$15.62
$37.51
$33.35
$46.46
$56.32
Dec 2014
Dec 2015
Dec 2016
Dec 2017
Dec 2018
Dec 2019
C A S H F LO W S
For the year ended December 31,
Net cash provided by operating activities
2018
67,197
2019
79,709
Net cash used in investing activities
(46,117)
(151,558)
Net cash provided by financing activities
Effect of exchange rate changes on cash
and cash equivalents
Cash and cash equivalents at beginning
of the year
4,094
(93)
56,712
252
52,525
77,606
Cash and cash equivalents at end of the year
77,606
62,721
C O N S O L I D AT E D S TAT E M E N T S O F
F I N A N C I A L P O S I T I O N D ATA
As of December 31
Cash and cash equivalents
Investments (current & non-current)
Trade receivables
Other receivables (current & non-current)
Other assets (current & non-current)
Other financial assets (current & non-current)
Deferred tax assets
Investment in associates
Property and equipment
Intangible assets
Right-of-use asset
Goodwill
Total assets
Trade payables (current & non-current)
Payroll and social security taxes payable
Borrowing (current & non-current)
Other financial liabilities (current & non-current)
Net (decrease) increase in Cash and cash
equivalent at end of year
25,081
(14,885)
Lease Liabilities (current & non-current)
C A P I TA L R E S O U R C E S
For the year ended December 31,
Capital Expenditures
Tax liabilities
Deferred tax liabilities
Other liabilities and provisions
Total liabilities
2018
28,506
2019
27,776
Total equity and non-controlling interest
Total equity, non-controlling interest & liabilities
2018
77,606
9,162
110,898
49,538
-
895
16,916
4,000
51,460
11,778
-
104,846
437,099
17,578
58,535
-
12,765
-
7,399
-
2,906
99,183
337.916
437.099
2019
62,721
20,198
156,676
28,118
21,235
6,210
26,868
3,776
87,533
27,110
58,781
188,538
687,764
36,987
72,252
51,386
10,554
61,363
12,510
1,028
2,970
249,050
438,714
687,764
18
Operational
performance
+66
O V E R A L L R E S U LT
C U S TO M E R S U R V E Y Q 4 - 2 0 1 9
N E T P R O M OT E R S C O R E ( N P S )
Data privacy & Security*
Regarding data privacy and freedom of expression, we up-
behavior regulations. We also maintain at zero the number of
dated our website privacy policy, and our cookies policy. Re-
law enforcement requests for user information and the
garding the last one, it was a restructuring of our entire modali-
number of users whose information was requested. To this
ty of acceptance of Cookies to improve our "Privacy by Default"
point in time our core products or services are not subject to
concerning the use of Cookies on our sites. We worked in the
government-required monitoring, blocking, content filtering, or
transparency of the purpose, and the treatment that will be
censoring in any county.
given to the data we receive from candidates, the press, poten-
Globant had five security incidents during the year, but none
tial businesses or any stakeholder in general. Both policies take
of them was neither critical nor involved personally identifiable
into account the applicable laws and regulations in the coun-
information (PII). No users were affected by these events.
tries where we operate as well as good practices.
Sustainability Accounting Standards Board (SASB)
Good
Excellent
World Class
In addition, we have designated our StarMeUp OS’
activity metrics:
-100
0
+50
+70
+100
C E R T I F I C AT I O N S *CDSA (Content Delivery and Security Association) / *CMMI (Capability Maturity Model Integration)
ISOISO9001:2015
ISOISO27001:2003
*CDSA
*CDSA
*CMMI
*CMMI
Argentina, Uruguay
South Park, Pune and Minsk
North Park, Capitalinas (CBA),
Montevideo
Sistemas Globales and IAHF
Terms of Use, Privacy Policy and Cookie Policy for the
platform. Also, we make constant efforts to improve the
Privacy by Design and Privacy by Default principles ap-
plied to StarMeUp OS. All of our employees working
in this product receive special training periodically and sign
an Employee Confidentiality Statement.
Through the course of 2019, we increased our database up
to 340,669 people around the world. StarMeUp OS counts
with 343,133 subscriptions.
During this past year, we did not have any financial losses
whether as a result of legal proceedings associated with user
privacy nor legal proceedings associated with anticompetitive
None of our processes generate licensed products
or subscriptions to consumers or to business
intermediaries (TC-SI-000.A)
Our data processing capacity was 420 Rack Units
5% outsourced (TC-SI-000.B)
The amount of data storage was 0.55 petabytes.
0,01% outsourced (TC-SI-000.C)
* Other corporate risks’ analysis can be found in the Form 20-F (Item 3. Key
Information - Risk Factors), available at http://investors.globant.com/sec-filings
19
Global Talent
Where innovation, design and engineering meet scale
During 2019 we had a tremendous growth in terms of talent. We
increased our team by 41%, mainly leveraged by three reasons: or-
ganic growth in every Talent Development Center, a significant de-
crease in turnover, and the acquisition of two companies: Avanxo
and Belatrix. Based in LATAM both companies are strategic assets
in terms of talent and reinforce Globant’s regional leadership.
With an average age of 33.1 years, our people are highly qualified
in the latest technologies and trends. During 2019 we accompanied
their professional growth by increasing the number of training
hours per capita from 27 hours to 36 hours.
21
Continuous
Learning Program
We dedicate significant resources to the development and
One of our main focuses is to provide transparency and
professional growth of our employees through learning expe-
enable our employees to enhance their professional develop-
riences, career plans, mentoring, talent assessment, succes-
ment within our organization. As part of our efforts to accom-
sion planning and performance management.
plish these objectives, we host a continuous program, called
Since 2015, Globant Academy has become our continuous
“Keep your Career Moving".
learning program in which all of our training efforts are con-
For our leaders, we count with a Leadership Community,
solidated and formalized within five distinct schools (Tech-
in which leaders can find relevant information for their roles
nology, Leadership, Corporate, Agile and Languages).
and obtain training through various offerings, including spe-
Depending on the requirements of the particular program,
cific onboardings, knowledge sharing sessions and various
we employ various learning methodologies such as e-learn-
resource materials. Also we launched the “LeAP” (Leadership
ing, virtual learning, face-to-face and blended learning.
Accelerator Program), which aims to help foster our Leaders’
We also use specific programs to recruit, train and develop
development and strengthen their management skills by
our employees. Bootcamps is a program to select, train and
giving them all the essential tools to leap ahead in their ca-
hire talented employees. Code your Future is a Junior
reers. 75% of our leaders were part of LeAP during 2019.
Talent program to educate young people about technolo-
gies, processes and methodologies while they intern with
us. This program also serves as a recruitment source for
junior-level employees.
8,309
303,017
36.5
Trained Globers
Training hours
Annual
learning hours
22
Indicators
G LO B E R S T H R O U G H T H E Y E A R S
11,855
2019
8,384
6,753
2018
2017
G LO B E R S BY C O U N T RY
Female
Male
28.1%
Younger than
25 Years old
23.5%
Between 25
& 29 Years old
18.2%
Between 30
& 34 Years old
21.8%
Between 35 &
39 Years old
26.2%
Older than
40 Years old
33.1
Years
Old
Global average
Global average
Employee
engagement
Performance
Assessment
Seniority
changes
0.5%
Internship
99.5%
Work contract
99%
2019
98%
2018
3,322
2019
2,159
2018
Argentina
Colombia
Mexico
India
USA
Peru
Uruguay
Chile
Brazil
Belarus
Romania
Spain
UK
Others
24.9%
75.1%
19.5%
80.5%
16.3%
83.7%
31.3%
68.7%
22.3%
77.7%
17.4%
82.6%
18.0%
82.0%
14.8%
85.2%
19.4%
80.6%
16.0%
84.0%
29.6%
70.4%
34.3%
65.7%
28.6%
71.4%
10%
90%
30.0%
2019
34.1%
2018
26.7%
2019
25.0%
2018
10.9%
2019
10.3%
2018
10.0%
2019
11.6%
2018
5.1%
2019
7.0%
2018
4.7%
2019
1.2%
2018
4.2%
2019
4.9%
2018
3.8%
2019
2.6%
2018
1.6%
2019
0.3%
2018
0.9%
2019
0.8%
2018
0.8%
2019
1.0%
2018
0.8%
2019
0.9%
2018
0.5%
2019
0.4%
2018
0.1%
2019
- %
2018
23
Wo m en b y
Wo m en b y
senio rit y
senio rit y
9.4%
Employees are
foreign nationals
3.6%
Employees are
located offshore
89%
Local Managers
vs Expatriates*
* People permanently residing in the city when taking their position at Globant
Wo m en
Wo m en
a t G lo ba nt
a t G lo ba nt
Manager
Leader
Senior
Semi-Senior
Junior
Trainee
28.1%
23.5%
18.2%
21.8%
26.2%
35.0%
T U R N O V E R
18.0
2017
%
18.2
%
2018
14.6
2019
%
W O R K I N G M O O D
75
%
2017
80%
2018
80%
2019
A S S E S S E M E N T ( O V E R 5 P O I N T S )
2019
2018
2017
4.01
4.05
3.93
22%
W O M E N B Y P O S I T I O N
Staff Areas
Production
2017
247
2018
319
2019
467
1,198
1,542
2,093
F E M A L E W A G E V S M A L E W A G E *
-4.5%
-3.6%
-3.6%
2017
2018
2019
* The calculation is a weighted average of female/male ratio according to the
number of people in each category. Some categories might show higher
dispersion due to the small number of cases.
Also, seniority might impact on the maximum wages in each category.
24
Unique Culture
The inner force that makes ourselves unique
During 2019 we launched Be Kind. Our way to
transform organizations and people's lives with kind-
ness. Be Kind is not a program. It's a way of life. It’s an
essential part of the culture that we share with our
Globers, our clients and our investors. We want to
bring the person back to the center of everything we
do. We encourage everybody to be kind to their
peers, with the planet and with humanity as a whole.
26
to your peers
The best way of being kind to our peers is to
embrace diversity and learn from it. Technology
challenges us to be more innovative every day,
and the best way to live up to that challenge is to
include every point of view and learn from it. We
are kind to our peers when we learn from
plurality, when we strive to promote diversity,
and when we work harder to be more inclusive.
27
Diversity
& inclusion
“There is no innovation without
“There is no innovation without
diversity and there is no
diversity and there is no
improvement without plurality”
improvement without plurality”
We believe that in order for us to be kind to our peers,
To emphasize the importance of fostering an integrative
connect and promote activities aligned with their interests.
Diversity and Inclusion have to be present as fundamental
work environment, we organized our first Diversity Week.
Our first pilot emerged in Mexico with the creation of the
pillars of our conduct.
This global initiative consists in the launching of a series of 12
first LGBT+ community, which later inspired the formation of
We strive to raise awareness on the importance of work-
webinars condensed in one week. We covered 4 Diversity
its sister community in India. Women’s communities were
place diversity amongst our Globers. During 2019, we
and Inclusion topics in 2 languages across three different
also created in Argentina and the US.
worked hard to promote a comprehensive work environ-
time zones, which allowed more than 1,000 Globers to partic-
Internally, we also developed a Disability POD, with the
ment, in accordance with our 2018 Diversity and Inclu-
ipate all over the world.
aim of promoting inclusive hiring at scale. During this year the
sion Fundamentals. To do so, we created the Diversity
To continue promoting diversity and fostering a plural envi-
POD worked in the incorporation of inclusive practices across
and Inclusion Awareness Session, a mandatory online
ronment, we created the framework for the formation of
multiple areas, adjusting our internal structure to be prepared
training with a high level of acceptance (4.7 over 5 punctua-
internal Communities. These are self-managed initiatives
to better welcome Globers with disabilities to our workforce.
tion), and which more than 90% of our Globers have already
promoted by Globers, which aim to function as a space inside
completed the six months following its release.
Globant where those who share a common identity can
Benefits
Globant Healthy
Premium medical coverage. Dental Plan Vaccination
campaign. In company physician. Nutritionist. Gym
discount. Cycle to Work scheme. Massage and fruit
in the office. Meditation sessions.
Family
Extended maternity / paternity leave. Marriage and
birth gifts. Life Insurance. Family days at all sites.
Child care program partially funded.
Have fun
Surf trip to Mar del Plata, Argentina, and to Goa,
India. Mini ski trip to Las Leñas, Argentina. After
office events and end of the year parties. Music band
contest and Photo Contest. Sports and game con-
tests and tournaments.
Other benefits
Language classes; pension plan; graduation gifts;
discounts to in educational institutions; on-site hair-
dresser and manicure; discount, benefit and recog-
nition program, internet reimbursement for some
positions.
28
Looking for
Hidden Talent
At Globant, we believe talent isn’t always shown
in plain sight but hidden in our communities.
That is why, during 2019, we continued working
to bring opportunities closer to that talent, by
means of initiatives carried out to promote the
insertion and development of different key
groups for our industry.
We launched “Code Your Future” program intended to train people
Chicas Programadoras, Globers volunteered to mentor secondary
in technology, by granting 500 scholarships, of which 80% are aimed
school girls in programming skills, inspiring more than 250 young
at women with an interest in fostering skills in IT. This focus on the de-
women in 10 clubs across 8 Argentinian cities. Meanwhile, in India,
velopment of women in the technology workforce is part of our all-en-
the Empower Her program aims at providing young women in vulner-
compassing program “Women That Build”, our campaign to promote
able socioeconomic contexts with technical and soft skills, capacitat-
the inclusion and professional growth of women in our industry.
ing them for their eventual access to the labor market.
Through this initiative, we seek to mitigate the lack of female represen-
We also worked with HolaCode in Mexico, providing workshops and
tation in the IT ecosystem.
training to migrants and deportees. In Colombia, we promoted the
As part of this program, we held a series of initiatives all over the
mentoring in technology of students in Bogotá and Medellín with the
world in 2019. In Chile and Mexico, we organized inspirational work-
SENA and Alianza Futuro Digital institutions. We’ve also been talking
shops with Laboratoria, which focused on the training of young
with several organizations to connect with US veterans with opportuni-
women in technology. In Argentina, and in partnership with Club de
ties in technology, as part of our “Veterans in IT” program.
29
Globanteers
We believe being kind is a way of life. It is enrooted in the Globers’
DNA. With Globanteers, our corporate volunteer program, we believe
we can foster inclusion through education. We seek to summon
Globers who are willing to donate their time and know-how, providing
vulnerable communities with the opportunity to learn and access the
world of IT. The culture of kindness cultivated by our Globers is some-
thing we are very proud of: during 2019, more than 1,600 volunteers
had collaborated with external initiatives with the community.
Two of these initiatives were possible thanks to the kindness and
collaboration of Globers and clients. The first initiative, All4Venezue-
la, involved raising funds as an aid for the people of Venezuela, in the
context of the country’s profound humanitarian crisis. With the help of
over 780 Globers, we managed to raise $310,000 dollars, which
allowed the purchasing of food to feed over 650 babies for a whole
year. The following was our Christmas campaign, Christmas4All,
throughout which funds were raised to be donated to NGOs working
with children in contexts of poverty all over the world.
India
Peru
17%
16%
15%
10%
9%
8%
6%
4%
3%
13.5%
Vo lu nteers
Vo lu nteers
20 19
20 19
(% of total payroll)
30
to humanity
Our mission is to transform the world, one step at
the time. We help organizations thrive and change
the way they relate to users and employees. We
must unite with them and embrace a common
vision, overcoming ethical challenges and
incorporating inclusive practices: We want to do it
leading the AI revolution in an ethical way, coding
without biases and promoting accessibility in
every piece of software.
31
I R N E
S
S
A
F
S P A
R
E
N
A
N
T
R
T
O C I A
L
S
C
O
N
T
R I B
U
N
O
I
T
E C T
P
F
U
L
S
E
R
D A T
A
G M E N
T
E
D
U
A
I
N
T
E
L L I
G
E
C
N
E
Presenting
our AI
Manifesto
At Globant we define our AI Manifesto, a set of principles
that states what we believe and encourage. Moreover, our
goal is to define what we do and what we don’t do with AI.
Augmented Intelligence, Respectful data, Fairness, Trans-
parent, and Social Contribution are the essence of what we
understand as good practices of Artificial Intelligence. Con-
versely, we have to be publicly against any AI applications
which may contravene any law or regulation, the public
order and good morals.
We want to scale this manifesto worldwide during 2020,
so we will invite all the companies and organizations to sign
it and share it with their value chain.
32
Technology
for the
Community
Globant Labs is a space where Globers
develop their projects, experiment with new
technologies, challenge themselves by taking
on new roles and interact with other
employees. More than 300 Globers in all our
offices participated in about 35 projects
proposed by them with topics linked to social
responsibility, new technologies, among
others. Some of these projects were:
Dale!
It’s a teaching game for kids of all ages, that ex-
plains how to read and write correctly. This game
was born from the need to do a field of study in
many schools of Mendoza-Argentina. From day one,
we work together with DALE! Foundation to trans-
form their experience created in pencil and paper,
and turn it into a video game.
Emocionario
Approaches the problematic of the people with
disabilities who can have difficulties to identify their
emotions and the emotions of others, to attend to
social signals and anticipate the results and conse-
quences of certain actions. “Emocionario” is an appli-
cation that aims to incorporate and recognize emo-
tions both in themselves and in others, as well as in
the context of everyday situations.
Disaster Alert
This initiative is an intent to respond to the ques-
tion “What can we do if a disaster affects any of our
offices? How to give help to the Globers in a risky
situation?”. Using this service on the suite of StarMe-
Up, we will first communicate with them to deter-
mine their situation in a simple way that will allow us
to define what can we do and who needs help.
33
to the planet
We live in a context of climate emergency. Due to
this, there is no doubt that all efforts that
corporations, individuals, government and NGOs can
do would not suffice if we do not implement
measures to decarbonize the global economy. In line
with this fact, Globant has reviewed during Q4 2019
its carbon footprint and energy model to estimate
the efforts needed to, first, move to renewable
sources of energy as soon as possible, and second,
to achieve carbon neutrality in the short term.
34
As part of the Be Kind initiative, the
actions taken and planned include,
but are not limited to:
Recalculating
the Baseline
Recalculate the baseline
Extend the scope 3 model to data infrastructure
and commuting of employees
Move to 100% renewable energy
Reduce carbon-intensive activities
Offset the remaining emissions to achieve neutrality
We also continued to work in other initiatives such as recycling, disposal
of single-use plastics and migration towards the use of natural paper.
Finally we continued with our server virtualization policy, the use of
low consumption data centers, and invested in building improvements in
order to make them more sustainable. Our goal is to achieve sustainable
growth, and we encourage our ecosystem to join us in this mission.
We conducted an exhaustive inventory of devices pro-
We also monitored 61,319 sqm of facilities’ electricity
ducing direct emissions (kitchens, heating, boilers) and fugi-
consumption across these countries, which represent a
tive emissions (due to air conditioning) in Argentina, Belarus,
74.61% of our workforce and overall emissions, totalling
Chile, Colombia, USA, India, Mexico, Peru and Uruguay.
9,097 MWh in 2019.
CH4
NF3
CO2
N2O
HFC2
SF6
PFCS
Scope 1
Direct GHG (greenhouse gas)
emissions from sources that are
property or controlled by Globant.
Scope 2
Indirect emissions from elec-
tricity consumption, heating
or steam bought to suppliers.
Scope 3
Indirect emissions not in property
or non controlled by the organiza-
tion but related to Globant’s activity.
35
As a result, corporate emissions totalled 11,336.76 Tn
CO2e (CO2 equivalent Tonnes)*. The composition according
to each scope is as follows:
The estimate represents an increase from 2018 figures, although periods are not comparable
since in the previous reports our model considered only electricity consumption from network
(scope 2) and air travel (scope 3). In our past report, the scope 2 emissions totalled 3,561 tons of
equivalent CO2.
Scope 3
5,992.41 Tn CO2e
53%
37%
Domestic
63%
International
Scope 1
1,354.36 Tn CO2e
12%
13,51%
Diesel Consumption
86,18%
Gas Consumption
0,31%
Refrigerant Gas
Scope 2
3,989,99 Tn CO2e
35%
* Total energy consumed: 27,313.86 GJ (TC-SI-130a.1)
As a consequence of a detailed review of our baseline and model for
estimations, we introduced Scope 1 and provide separated information on
short and long-haul air travel (domestic and international). Going to detail on
comparable information, our Scope 2 emissions due to electricity consumption
has evolved over the years, accompanying our business growth.
EMISSIONS SCOPE 2
GHG Corporate Emissions
Inter annual variation of emissions
3.561,37 t CO2 e
3.989,99 t CO2 e
3.347,17 t CO2 e
3.178,717t CO2 e
2.457,269 t CO2 e
2.529,99 t CO2 e
817,2 t CO2 e
72,7 t CO2 e
382,7 t CO2 e
428,6 t CO2 e
-168,5 t CO2 e
2014
2015
2016
2017
2018
2019
Regarding Scope 3, we continue monitoring air travel as the most relevant
source of GHG emissions. For 2020, we are developing the model to estimate
emissions related to employee commuting and the outsourced infrastructure
(cloud and data centers) to complete the Scope 3 inventory as the baseline for
carbon neutralization strategy.
Regarding our air travel related emissions, in 2019 we experienced a peak in our
series, explained by the increasing demand of travel.
EMISSIONS SCOPE 3
Total GHG emissions of scope 3
Total number of flights
3.157,41 t CO2 e
2.333,58 t CO2 e
2.530,67 t CO2 e
2588
6.978
4.620
5.992,41 t CO2 e
2677
2014
2164
2015
2.153,97 t CO2 e
2477
3.109,28 t CO2 e
2016
2017
2018
2019
36
Decarbonization Strategy
The first step to reduce emissions is the transition to 100% renewables an-
nounced after the closure of the FY2019 (events after balance sheet date). This mea-
sure will reduce about 35% of emissions, and almost 75% of Scope 1 and 2 emissions,
which are the emissions directly attributable to our operations. To do so, the com-
pany will acquire the certificates on a country-by-country basis, which confirms the
energy bought from the national networks comes from renewable stocks. In coun-
tries where the REC, OI, iRECs or similar certificates are not available, the policy will
consist of buying certificates from adjacent countries or connected networks.
The second step has two actions which will be developed during the next few
years. Action one is to reduce the emissions by replacing the heating devices to
low-carbon ones. Action two consists of offsetting the remaining with projects
reducing emissions from the atmosphere, primarily related to our sites of operation.
We will prioritise innovative projects which not only reduce emissions but also
represents our values.
Intensity
Carbon intensity is the measure of emissions related to a specific activity
metric. We have measured intensity against people for the last years. Although
some companies measure against office space in square meters, we prefer to
keep our intensity measure related to the workforce.
In 2019, and despite the changes in the baseline, we have managed to reduce
emissions per employee (Scope 1 and 2) in 2019. In 2018 we reported 0.78 tCO2e
per Glober; while in 2019 our estimate results of 0.61 tCO2e per Glober. Adoption
of the renewable’s plan will also impact positively on the reduction.
However, to improve the accuracy of our emissions’ calculation, our intensity per
Glober will be recalculated in 2020 with new components in the Scope 3 estimates,
including air travel, commuting and outsourced data infrastructure.
37
Additional Information
About this report
In 2019 the Sustainability Council decided to conduct a
process to revise the materiality analysis. The process started
with an industry benchmark to identify the significant oppor-
tunities and concerns related to environmental, social and
governance
(ESG)
issues. Also, the sustainability team
researched the legislation of application in the territories we
operate regarding ESG norms. Once a perimeter of candidate
themes were identified, we engaged a panel of fifteen individu-
als representing a variety of constituencies (e.g. Globers, aca-
demics, investors, corporates, suppliers, and NGOs). They
were asked about the different impacts of our approach to
sustainability aspects in their relationship with Globant. The
plan represents an improvement which considers the latest
developments in materiality analysis, based on the review of
impacts rather than the focus on ‘interests’.
The review exercise was conducted in parallel with the
regular dialogue with stakeholders. Although we consider it
exhaustive regarding coverage of interest groups, this pro-
cess is limited to the views that our team was able to collect.
Under that premise, we continue to open our communication
channels, listening to our stakeholders’ community.
As stated in the last report, we continued using the codi-
fied SASB Standards to enrich our materiality approach.
38
The table below identifies the results and the potential impacts in the relationship with the stakeholders.
Topic
Internal impact
External impact
Potencial impact
Innovation
Diversity & Inclusion
Customer satisfaction
Economic performance
Crucial
Crucial
Crucial
Crucial
Crucial
Crucial
Crucial
Crucial
Ethics and compliance
Crucial
Crucial
Employment and career
Crucial
Tech Integrity, AI ethics, privacy
High
Environmental stewardship
High
Wellbeing and work-life balance
High
Community engagement
High
High
High
High
High
High
Public policy
Medium
Medium
Indirect economic impacts
Medium
Medium
Our goals of lead in the digital and cognitive space, make these
impacts meaningful for our clients and our corporate development.
Due to the size of the workforce we can be a role model in the
industry and in several of the countries we operate.
It impacts our relationship with the clients and the business
sustainability.
Our economic performance is relevant to our investors’ community,
and indirectly crucial for our business sustainability.
As a publicly listed company we have to adhere to the highest
standards to achieve the trust from investors, communities and
our people.
People is one of the pillars of our sustainability strategy. Our
relevance in certain markets is growing, becoming a role model
for employment and career opportunity.
Increasingly important, our work can affect many aspects of our
direct and indirect users (clients of clients), and the society as a
whole.
We are inmerse in a global climate crisis which forces all relevant
companies to take immediate action.
Our people are a key strategic component and a key stakeholder to
care for. The capacity of delivery also depends on the wellbeing of
our workforce.
Communities are the source of talent and business. Corporations
do not operate in vacuum and our stakeholders continuously
demand us higher levels of involvement.
The active participation in our society is quite related to
participating in industry dialogue. Our governmental stakeholders
also count on us to walk the talk with them.
Our capacity to influence, leveraged by the investment in new
ventures has every year an increasing importance in society, leading
not only by example but also by investment.
P
U
O
R
G
T
S
E
R
E
T
N
I
R
O
F
E
C
N
A
T
R
O
P
M
I
Innovation
Ethics & compliance
Diversity & Inclusion
Environmental stewardship
Economic performance
Community engagement
Tech integrity, ethics
in AI and Privacy
Customer satisfaction
Wellbeing and work-life balance
Employment and
career
Public policy
Indirect economic impacts
S T R A T E G I C
I M P O R T A N C E
39
Further indicators
This report generically refers to Globant and all its operations in the countries in which it operates
as the group of linked companies, detailed in the 20F. The parent company is Globant S.A.
It has not been determined the need to apply the environmental precautionary principle, under the
analysis of the company’s impacts and the aspects covered by this principle.
Sustainable
development goals
USA employees
by ethnics
Quality education
Internal development
programs (see page 24)
External community
programs (see page 36-37)
Gender equality
Equal employment opportunities
(see page 21, 27, 29-30)
Greater involvement of women
(see page 21, 27, 29-30)
Decent work &
economic growth
Employment quality
(see pages 21-30)
Company Growth at global scale
(see page 6-9, 16-17)
Industry, innovation
and infrastructure
Carbon footprint
measuring and reduction
(see page 39-41)
Climate action
Carbon footprint
measuring and reduction
(see page 39-41)
Partnership for
the goal
Industry sector improvement
(see page 24-25)
Partnerships for community /
citizenship projects
(see page 35-37, 44-47)
Latin
White/Caucasian
Black or
African American
Pacific Islander
52.7%
32.1%
12.5%
2.8%
0.0%
Supply chain
Total suppliers
2,277
2019
1,770
2018
Main suppliers
85
2019
102
2018
Critical suppliers
25
2019
31
2018
IT & related suppliers
71
2019
85
2018
40
Stakeholder
engagement
Our Sustainability Council coordinates participa-
tion, dialogues and other types of engagement
Clients
Civil Society Organizations & Education Centers
Interbank, YPF, Nestle Waters, Nespresso, Ubisoft, 3g Smart
Alianza Futuro Digital, Arbusta, Asociación Civil Dale!, Being Volun-
Group; AEP Energy, Amadeus, American Express, Aon, Bally Technolo-
teer, Biblioteca Popular C. Saavedra, Caraludme, Centro de Hemoter-
gies, BBVA, Cars.com, Boehringer
Ingelheim, CISCO, Cloudera,
apia Provincial, Colegio Fasta, Conciencia, Creer Hacer, Day School,
Coca-Cola, EA, Embraer, DELL EMC, f.biz, Fox, GroupM, HortonWorks,
Devs4Good, Empujar, Escuelas Públicas de Medellín, Friends of
GREE, iSeats, JWT, Latam Airlines, lastminute.com, LinkedIn, Loyal3,
Youth, Fundación Banco Central de Sangre, Fundación Formar, Hola
Mercado Libre, MoneyGram, National Geographic Channel, NYSE
Code, Hospital Garrahan, Hospital General de Medellín, Hospital
Euronext, OSRAM, Pernod Ricard, Petrobras, Prisma, PR Newswire,
Ramón Santamarina, Instituto de Hemoterapia, Instituto Nacional de
Price Waterhouse Cooper, Puma, Rackspace, TVN, Sabre, Santander,
Cancerología, Janakalyan Raktapedhi, Jóvenes PEP | Municipio MDQ,
Southwest, TNS, Travelocity, Trina Turk, Viajanet, Walmart Argentina,
Laboratoria, Mary's Place, MiMochi, Polo Educativo Saavedra, SENA
WOBI, Zynga, among others.
Tolima, Medellín, Bogotá, Sistema de Bibliotecas Públicas de Me-
with our stakeholders. In 2019, the council was
Governmental Offices
dellín, Técnica N3, TINC/Club de Chicas Programadoras, UCEMA,
Fundación CIAN, Instituto Provincial de Educación Técnica N°48
responsible for selecting the stakeholders with
whom to engage, and provided feedback to the
comments received by interested parties. The en-
tities that participated in the dialogue were:
National Governments of Argentina, Uruguay, Colombia, Mexico,
Presidente Roca, Asociación Ética y Economía, Asociación Coopera-
Chile and India. The government of the cities of Buenos Aires, Monte-
dora del Hospital de Niños Dr Ricardo Gutiérrez, Fundación de la
video and Bogota. Provincial governments of Buenos Aires, Chaco,
Hemofilia, Fundación Misión Marianista, Asociación Civil EIRENE
Tucuman, Santa Fe, Cordoba, Mendoza; municipalities of Tandil, Bahia
Argentina, Servicio Integral a la Familia, Fundación Metáfora para el
Blanca, Rosario, Mar del Plata, Medellin, San Francisco among others.
Desarrollo Sustentable y la Cooperación Internacional, Asociación
The Embassies of the United States, Uruguay, Chile, India, Colombia,
Civil DAR es DAR, Escuela Javier Lezcano Colodero, Escuela Experi-
Mexico, Romanina, Belarus, EAU, Spain and the United Kingdom in
mental con énfasis en TIC, Escuela San Vicente de Paúl, Asociación
Argentina. Argentinian embassies in other countries,
Civil Sembrar Valores, Parroquia Santa María Madre del Pueblo,
Chambers
OPCEBA Organización Paulina Carluccio Epidermolisis Bullosa de
Argentina, Federación de Centros Barriales Familia Grande Hogar de
CSIS, CESSI, Argencon, ANDI, CANIETI, CUTI, ATICMA, ADVA, CEPIT,
Cristo, Fundación Puerta 18 para la inserción laboral, Laboratorio de
Polo Tecnologico de Bahia Blanca, Cluster Tecnologico de Cordoba,
Biología Molecular del Instituto de Investigaciones Cardiológicas
AMCHAM, CACE, UIA, IDEA, ACDE, AEA, among others.
(ININCA) - UBA, CONICET, Escuela N° 19 D.E. 17, "Galicia", Asociación
Media
Cooperadora del Hospital Estévez, Centro de Ayuda Integral a la
Niñez y su Familia Semillitas, Institucion Fatima Asoc. Civil, Asocia-
Print, on-line, television and radio media from Argentina, Uruguay,
ción Civil Red de Apoyo y Participación, Universidad del CEMA, Aso-
Perú, Brazil, Colombia, Mexico, U.S.A., U.K., India and Spain.
ciación Civil Educativa Escocesa.
41
Sustainability Index: GRI Content Index
Standard / Framework Code
Disclosure
Disclosure Title
Page number / Answer
General Disclosures
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
102-1
102-2
102-3
102-4
102-5
102-6
102-7
102-8
102-9
102-10
102-11
102-12
102-13
102-14
102-16
Name of the organization
Activities, brands, products, and services
40
12-14
Location of headquarters
Location of operations
Ownership and legal form
Markets served
Our principal corporate office is located at 37A Av. J.F. Kennedy, L-1855, Luxembourg. Globant’s headquarters
are dispersed across multiple locations. In addition, because the headquarters activities are handled digitally
from different places, these cannot be solely associated to a single location or office.
6
40
6
Scale of the organization
5-6, 12-14
Information on employees and other workers
Supply chain
23-24
5-40
Significant changes to the organization and its supply chain
No changes
Precautionary Principle or approach
External initiatives
Membership of associations
Statement from senior decision-maker
40
-
41
3
Values, principles, standards, and norms of behavior
8, 28, 31-32
42
Standard / Framework Code
Disclosure
Disclosure Title
Page number / Answer
General Disclosures
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
GRI 102
102-18
102-40
102-41
102-42
102-43
102-44
102-45
102-46
102-47
102-48
102-49
102-50
102-51
102-52
102-53
102-54
102-55
102-56
Governance structure
List of stakeholder groups
Collective bargaining agreements
Identifying and selecting stakeholders
Approach to stakeholder engagement
Key topics and concerns raised
Entities included in the consolidated financial statements
Defining report content and topic Boundaries
List of material topics
Restatements of information
Changes in reporting
Reporting period
Date of most recent report
Reporting cycle
Contact point for questions regarding the report
Claims of reporting in accordance with the GRI Standards
GRI content index
External assurance
7
41
8
41
41
39
40
38-39
39
35
38-39
50
50
50
50
4
42-47
50
43
Standard / Framework Code
Disclosure
Disclosure Title
Page number / Answer
Material Aspect: Economic Performance
GRI 103
GRI 103
GRI 103
GRI 201
GRI 201
Material Aspect: Market Presence
GRI 103
GRI 103
GRI 103
GRI 202
103-1
103-2
103-3
201-1
201-4
103-1
103-2
103-3
202-2
Explanation of the material topic and its Boundary
The management approach and its components
Evaluation of the management approach
Direct economic value generated and distributed
Financial assistance received from government
Explanation of the material topic and its Boundary
The management approach and its components
Evaluation of the management approach
16-18
16-18
16-18
16-18
17
12-14
12-14
12-14
Proportion of senior management hired from the local community
24
Material Aspect: Indirect Economic Impacts
GRI 103
GRI 103
GRI 103
GRI 203
103-1
103-2
103-3
203-2
Explanation of the material topic and its Boundary
The management approach and its components
Evaluation of the management approach
Significant indirect economic impacts
4-5
4-5
4-5
29, 33
44
Standard / Framework Code
Disclosure
Disclosure Title
Page number / Answer
Material Aspect: Anti-corruption
GRI 103
GRI 103
GRI 103
GRI 205
GRI 205
103-1
103-2
103-3
205-2
205-3
Explanation of the material topic and its Boundary
The management approach and its components
Evaluation of the management approach
Communication and training about anti-corruption policies and procedures
8
8
8
8
Confirmed incidents of corruption and actions taken
zero incidents
Material Aspect: Anti-competitive Behavior
GRI 103
GRI 103
GRI 103
GRI 206
103-1
103-2
103-3
206-1
Explanation of the material topic and its Boundary
The management approach and its components
Evaluation of the management approach
Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
19
19
19
19
45
Standard / Framework Code
Disclosure
Disclosure Title
Page number / Answer
Material Aspect: Emissions
GRI 103
GRI 103
GRI 103
GRI 305
GRI 305
GRI 305
GRI 305
GRI 305
Material Aspect: Employment
GRI 103
GRI 103
GRI 103
GRI 401
GRI 401
GRI 401
Material Aspect: Training and Education
GRI 103
GRI 103
GRI 103
GRI 305
GRI 305
GRI 305
103-1
103-2
103-3
305-1
305-2
305-3
305-4
305-5
103-1
103-2
103-3
401-1
401-2
401-3
103-1
103-2
103-3
305-1
305-2
305-3
Explanation of the material topic and its Boundary
The management approach and its components
Evaluation of the management approach
Energy indirect (Scope 1) GHG emissions
Energy indirect (Scope 2) GHG emissions
Other indirect (Scope 3) GHG emissions
GHG emissions intensity
Reduction of GHG emissions
Explanation of the material topic and its Boundary
The management approach and its components
Evaluation of the management approach
New employee hires and employee turnover
Benefits provided to full-time employees that are not provided
to temporary or part-time employees
Parental leave
Explanation of the material topic and its Boundary
The management approach and its components
Evaluation of the management approach
Average hours of training per year per employee
Programs for upgrading employee skills and transition assistance programs
Percentage of employees receiving regular performance and career development reviews
34
34-37
34-36
36
36
36
37
37
21-24, 28
21-24, 28
21-24, 28
23
28
28
21-22
21-22
21-22
22
22
22
46
Standard / Framework Code
Disclosure
Disclosure Title
Page number / Answer
Material Aspect: Diversity and Equal Opportunity
GRI 103
GRI 103
GRI 103
GRI 405
GRI 405
Material Aspect: Local Communities
GRI 103
GRI 103
GRI 103
GRI 413
Material Aspect: Public Policy
GRI 103
GRI 103
GRI 103
GRI 417
Material Aspect: Marketing and Labeling
GRI 103
GRI 103
GRI 103
GRI 417
Material Aspect: Customer Privacy
GRI 103
GRI 103
GRI 103
GRI 418
103-1
103-2
103-3
405-1
405-2
103-1
103-2
103-3
413-1
103-1
103-2
103-3
415-1
103-1
103-2
103-3
417-1
103-1
103-2
103-3
418-1
Explanation of the material topic and its Boundary
The management approach and its components
Evaluation of the management approach
Diversity of governance bodies and employees
Ratio of basic salary and remuneration of women to menv
Explanation of the material topic and its Boundary
The management approach and its components
Evaluation of the management approach
Operations with local community engagement, impact assessments,
and development programs
Explanation of the material topic and its Boundary
The management approach and its components
Evaluation of the management approach
28
28
28
24
24
31, 33
31
31
29-30, 33
-
-
-
Political contributions
No political contributions were made
Explanation of the material topic and its Boundary
The management approach and its components
Evaluation of the management approach
Requirements for product and service information and labeling
Explanation of the material topic and its Boundary
The management approach and its components
Evaluation of the management approach
Substantiated complaints concerning breaches of customer privacy
and losses of customer data
19
19
19
19
19
19
19
19
47
SASB Content
Topics
Accounting Metric
Category
Unit of Measure
Code
Page number
Sustainability Disclosure Topics & Accounting Metrics
Environmental Footprint of Hardware Infrastructure
(1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable
Quantitative
Gigajoules (GJ), Percentage (%)
TC-SI-130a.1
36
Environmental Footprint of Hardware Infrastructure
(1) Total water withdrawn, (2) total water consumed, percentage of each in regions with High or Extremely
High Baseline Water Stress
Quantitative
Thousand cubic meters (m³),
Percentage (%)
TC-SI-130a.2
Not material
Environmental Footprint of Hardware Infrastructure
Discussion of the integration of environmental considerations into strategic planning for data center needs
Discussion and Analysis
Data Privacy & Freedom of Expression
Description of policies and practices relating to behavioral advertising and user privacy
Discussion and Analysis
n/a
n/a
Data Privacy & Freedom of Expression
Number of users whose information is used for secondary purposes
Quantitative
Number
TC-SI-130a.3
34-37
TC-SI-220a.1
TC-SI-220a.2
Data Privacy & Freedom of Expression
Total amount of monetary losses as a result of legal proceedings associate with user privacy
Quantitative
Reporting Currency
TC-SI-220a.3
Data Privacy & Freedom of Expression
Data Privacy & Freedom of Expression
Data Security
Data Security
(1) Number of law enforcement requests for user information, (2) number of users whose information was
requested, (3) percentage resulting in disclosure
Quantitative
Number, percentage (%)
TC-SI-220a.4
List of countries where core products or services are subject to government-required monitoring, blocking,
content filtering, or censoring
Discussion and Analysis
n/a
TC-SI-220a.5
(1) Number of data breaches, (2) percentage involving personally identifiable information (PII), (3) numberof users affected
Quantitative
Number, percentage (%)
TC-SI-230a.1
Description of approach to identifying and addressing data security risks, including use of third-party
cybersecurity standards
Discussion and Analysis
n/a
Recruiting & Managing a Global, Diverse & Skilled Workforce
Percentage of employees that are (1) foreign nationals and (2) located offshore
Quantitative
Percentage (%)
Recruiting & Managing a Global, Diverse & Skilled Workforce
Employee engagement as a percentage
Quantitative
Percentage (%)
Recruiting & Managing a Global, Diverse & Skilled Workforce
Percentage of gender and racial/ethnic group representation for (1) management, (2) technical staff, and
(3) all other employees
Quantitative
Percentage (%)
TC-SI-330a.3
Intellectual Property Protection & Competitive Behavior
Total amount of monetary losses as a result of legal proceedings associated with anticompetitive behavior regulations
Quantitative
Reporting Currency
Managing Systemic Risks from Technology Disruptions
Number of (1) performance issues and (2) service disruptions; (3) total customer downtime
Quantitative
Number, Days
Managing Systemic Risks from Technology Disruptions
Description of business continuity risks related to disruptions of operations
Discussion and Analysis
n/a
TC-SI-520a.1
TC-SI-550a.1
TC-SI-550a.2
Activity Metrics
TC-SI-230a.2
TC-SI-330a.1
TC-SI-330a.2
19
19
19
19
19
19
19
23-24
23-24
40
19
19
19
Activity Metric
Category
Unit of Measure
Code
Page
(1) Number of licenses or subscriptions, (2) percentage cloud based
(1) Data processing capacity, (2) percentage outsourced
(1) Data processing capacity, (2) percentage outsourced
Quantitative
Quantitative
Quantitative
Number, percentage (%)
TC-SI-000.A
See note
TC-SI-000.B
Petabytes, Percentage (%)
TC-SI-000.C
19
19
19
48
Integrated Report Content
Contents
Aspects
Page number
Organizational overview
and external environment
"What does the organization do and what are the
circumstances under which it operates?"
Culture, ethics and values
Ownership and operating structure
Principal activities and markets
Competitive landscape and market positioning
Position within the value chain
Key quantitative information
Significant factors affecting the external environment
Governance
"How does the organization’s governance structure
Leadership structure, including the skills and diversity
support its ability to create value in the short, medium
Specific processes used to make strategic decisions
and long term?"
How the organization’s culture, ethics and values are reflected in its use of and effects on the capitals
"The responsibility those charged with governance take for promoting and enabling innovation"
How remuneration and incentives are linked to value creation in the short, medium and long term
Business model
"What is the organization’s business model?"
Inputs
Business Activities
Outputs
Outcomes
Risks and opportunities
"What are the specific risks and opportunities that affect
Key risks and opportunities that are specific to the organization
the organization’s ability to create value over the short,
medium and long term, and how is the organization
dealing with them?"
Organization’s approach to any real risks (whether they be in the short, medium or long term) that are
fundamental to the ongoing ability of the organization to create value
Strategy and resource allocation
"Where does the organization want to go and how does it
Objetctives and strategic plans
intend to get there?"
Performance
"To what extent has the organization achieved its strategic
Quantitative information
objectives for the period and what are its outcomes in terms of
Impact on capitals
effects on the capitals?"
Relationships with stakeholders
Outlook
"What challenges and uncertainties is the organization likely
Organization’s expectations about the external environment
to encounter in pursuing its strategy, and what are the potential
Mechanisms to address challenges and opportunities
implications for its business model and future performance?"
Basis of preparation and
"How does the organization determine what matters to include
presentation
in the integrated report and how are such matters quantified or
evaluated?"
Materiality
Boundaries
Frameworks
26-27, 31-32
6-7, 40
10-14
10-14
5-7
5-6, 16-18
5
7-8
8
25-37
25-37
8
5
5
5
5
9
9
3, 5
5, 15-19
5, 15-19
41
9
9-14
38-39
38-39, 41
38-39, 41
49
Report Profile
Stock
Independent
Audit Firm*
Sustainability
Advisor
Globant is listed in NYSE under the
ticker GLOB
Deloitte
* Sustainability disclosures have not been
externally verified
Crowe
Transfer Agent
31
Date of last report
American Stock Transfer
& Trust Company, LLC
2018
Reporting cycle
IR Contact
Sustainability
Contact
Annual
Paula Conde & Amit Singh / IRO
paula.conde@globant.com
a.singh@globant.com
Francisco Michref
Public Affairs & Sustainability Manager
francisco.michref@globant.com
Website
www.globant.com
Reporting period
January 1st 2019 to
December 31st 2019
37A, Avenue JF Kennedy, L-1855 Luxembourg
Ingeniero Butty 240 9° floor Laminar Plaza Tower
251 Park Ave S, 11th floor,
875 Howard St, 3rd floor, Of: Suite 320
BP 2501 • L-1025, Luxembourg
C1001AFB, City of Buenos Aires
New York, NY 10010
CA 94103, San Francisco
50