Globant
Annual Report 2020

Plain-text annual report

2020 INTEGRATED REPORT 2020 INTEGRATED REPORT 3 Letter from the CEO 4 About the Report 6 Globant at a glance 10 19 Future Centric Approach Global Talent 49 Additional information 13 High Performance 27 Kindness-based Culture 53 Sustainability Index 66 Report profile 2020 INTEGRATED REPORT Letter from the CEO_ I am pleased to present you with this snapshot of Globant a unique opportunity for our differential value proposition: Regarding our Be Kind commitments, we remain commit- during this challenging, crucial and transformative time. We create a way forward for our clients to become what we ted and on track to our 2025 goal of having 50% our mana- We are in the middle of a once-in-a-generation accelerat- call Augmented Organizations: embracing agility, technolo- gerial positions held by women and non-binary genders. ed change, with the COVID-19 pandemic having impacted gy and collaborative culture to rise above the daily chal- This year, Be Kind saw its largest undertaking to date with our global society in nearly every aspect of our personal lenges to thrive. We work alongside them to bring together the Women that Build Award, which sought to recognize and professional lives. strategy, sustainable business models, digital trends, AI women who were changing the game in tech and inspiring and inclusive culture to unleash their potential. the next generation of female innovators, leaders and Like all organizations, we were impacted by this pandemic. role models. The turnout surpassed all expectations, with However, I have never been prouder of what we’ve done Our future-centric approach also means putting sustainabili- 12 thousand nominations coming in from 17 countries. as Globers to serve one another, our communities and ty front and center. In line with this, Globant is launching the our clients as we rose to the occasion. Sustainable Business Studio. This new Studio will operate at In 2020 we accomplished our goal of consuming 100% of the intersection of technology and sustainability, bringing our energy from renewable sources. Reaching this goal In the face of unpredictability and global uncertainty, we together new know-how, expertise and competence. only motivated us to push harder, so we announced our were able to continue on our growth path. Revenue new goal of becoming carbon neutral by the end of 2021. increased 23.5% year-over-year, reaching $814.1 million. The pandemic also brought us the opportunity to help our Also, I am proud to say that Globant is now a team of communities in several ways: Through the takingcare.glo- While this year has been challenging, humanity is unveil- 16,251 Globers collaborating across 16 countries, serving bant.com initiative we donated more than $ 1M in Test Kits ing better and faster innovations than ever. I’m confident almost 800 blue chip clients worldwide. (PCR) and well as digital resources to local authorities and that we have what it takes to come out stronger on the Martín Migoya Co-Founder, Chairman and CEO @migoya The resilience of being digital pure play gave us a perspec- tial resources in real time. Our Globers also volunteered in tive that we knew would be of value for our clients in this mentorship and training for local school youth and educa- health teams so that they could monitor and allocate essen- other side. critical year. The global COVID-19 crisis pushed organiza- tion professionals to adapt to the sudden digitalization of Stay safe, and keep rocking! tions to embrace profound digital transformations, opening schools and other services. 3 3 2020 INTEGRATED REPORT About the report This report is meant to provide transparent and systemized information on our eco- nomic, social, and environmental performance to our stakeholders. It represents our sustainable management progress between January 1 and December 31, 2020. It has been prepared in accordance with the Integrated Reporting Framework, the Global Reporting Initiative Standards (GRI) - core option, while using the Sustainabili- ty Accounting Standards Board (SASB) standards for Software and IT services as a reference. Our disclosures generically refer to Globant and all of its operations in the countries where it operates as the group of linked companies, detailed in the 20F. The parent company is Globant S.A. The report discloses also Globant’s commitment to the Sustainable Development Goals (SDG) that we identified related to our business model: quality education; gender equality; decent work and economic growth; industry, innovation and infra- structure; climate action; and partnership for the goals. Finally, Globant is committed to the 10 principles of the UN Global Compact, incorporat- ing into its strategies, policies, and procedures a culture of integrity to uphold its respon- sibility to human rights, gainful employment, anti-corruption, and the environment. k r o w e m a r F y t i l i i b a n a t s u S FUTURE CENTRIC APPROACH HIGH PERFORMANCE KINDNESS-BASED CULTURE GLOBAL TALENT 4 Engineering, Innovation & Design Sustainability Studio Model & Podular Structure BY C A P I TA L S Augmented Organizations INPUTS +$814.1M Revenue 2.45 Adjusted EPS INPUTS 6 core strategic pillars New Sustainable Business Studio and Life Sciences Studio Augmented Accelerators OUTCOMES FUTURE CENTRIC APPROACH HIGH PERFORMANCE OUTCOMES 23.5% Revenue Growth YoY +16,250 Globers 16 Countries INPUTS 37% Headcount Growth YoY +568,000 Training Hours. OUTCOMES GLOBAL TALENT KINDNESS-BASED CULTURE INPUTS BE KIND to your Peers to the Planet to Humanity OUTCOMES +3 percentage points growth in female headcount & female Managers HC 36.5k beneficiaries in community programs with +40k pro bono hours dedicated 100% renewable energy in every location. Carbon neutrality commitment for 2021 2020 INTEGRATED REPORT Globant at a glance Globers 16,251 16 Countries 37 Cities 56 Locations United Kingdom Belarus Luxembourg Spain Romania France Canada United States Mexico Colombia Peru Brazil Chile Uruguay Argentina India 6 2020 INTEGRATED REPORT Governance B O A R D O F D I R E C T O 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 and Co-Founder Linda Rottenberg non-executive Independent Director(1)(3) Martín Migoya CEO & Co-Founder Martín Gonzalo Umaran Chief of Staff & Co-Founder Guibert Andrés Englebienne CTO and Co-Founder Patricia Pomies Chief Delivery & People Officer Gustavo Barreiro Chief Information Officer Mario Eduardo Vázquez non-executive Independent Director(1)(2) Francisco Álvarez-Demalde non-executive Independent Director(3) Richard Haythornthwaite non-executive Independent Director(2)(3) Philip A. Odeen non-executive Independent Director(1)(2) Juan Urthiague Chief Financial Officer Wanda Weigert Chief Brand Officer Mercedes Mac Pherson Chief Diversity & Talent Officer Sol Mariel Noello General Counsel Yanina Maria Conti Chief Accounting Officer Board of Directors by Age Board of Directors by Gender Senior Management by Age Senior Management by Gender Less than 45 Between 45 & 55 More than 55 12% 50% 38% %87 %13 Less than 45 Between 45 & 55 More than 55 60% 30% 10% %50 %50 (1)Audit Committee, (2) Compensation Committee (3) Corporate Governance and Nominating Committee | *More information about our board of directors at 20F Item 6 Directors, Senior management and Employees 7 2020 INTEGRATED REPORT Board Practices The company is governed by our board of directors which Corporate Governance Practices Our corporate governance practices are governed by Committees Our board of directors has established an audit committee, is vested with the broadest powers to take any actions Luxembourg law (particularly the law of August 10, 1915, a compensation committee and a corporate governance necessary or useful to fulfill our corporate purpose with on commercial companies as amended) and our articles of and nominating committee. Our board of directors may the exception of actions reserved by law or our articles of association. As a Luxembourg company listed on the from time to time establish other committees. association to the general meeting of shareholders. If NYSE, we are not required to comply with all of the necessary, the directors can delegate the authority to corporate governance listing standards of the NYSE for US Audit Committee: Oversees our corporate accounting, certain executives of the company members to execute listed companies. We, however, believe that our corporate auditing, and financial reporting process. their decisions. Our articles of association provide that governance practices meet or exceed, in all material our board of directors must consist of at least seven respects, the corporate governance standards that the Compensation Committee: Reviews, recommends and members and no more than fifteen members. Further NYSE generally requires for US listed companies. We have approves policies relating to compensation and benefits of considerations about practices (voting, majorities, indicated the significant ways that these differ from the our officers and directors, administers our common shares management, conflicts of interest, and other provisions) corporate governance standards required by the NYSE for option and benefit plans and reviews general policy are included in the annual report in form 20F (p. 99). US listed companies in our annual report on Form 20F. P. relating to compensation and benefits. Compensation The compensation policy for Directors and Senior Management comprises a fixed salary and share-based compensation pursuant to our 2014 Equity Incentive Plan, which includes RSU and other equity awards. The incentive plan's methods and composition are described in detail in the annual report in form 20F, p.97. Neither we nor our subsidiaries maintain any directors’ service contracts providing for benefits 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. 130, in the Corporate Governance Practices section. During 2020, we had no confirmed incidents of corruption. Corporate Governance and Nominating Committee: Identifies individuals qualified to become directors; recommends director nominees to our board of directors for each election of directors; develops and recommends criteria for selecting qualified director candidates to our board of directors; considers committee member qualifications, appointment, and removal; recommends corporate governance guidelines applicable to us; reviews ESG performance reports, and provides oversight in the evaluation of our board of directors and each committee. 8 2020 INTEGRATED REPORT Integrity-Ethics-Compliance In 2014, we adopted a Code of Ethics and an Anti-Bribery and Anti-Corruption Risks & Opportunities Our Annual Report, filed with the SEC under Form 20F, covers the risks and op- 1. Per IDC, 65% of global GDP will be digitalized by 2022, driving $6.8 trillion of direct digital transformation investment from 2020 to 2023. Policy applicable to directors, senior executives, officers, employees (whether portunities in detail under the headline ‘Risk Factors’. 2. To thrive in a digital supremacy economy, 50% of enterprises will implement permanent, fixed-term or temporary), consultants, contractors, trainees, an organizational culture optimized for DX in 2025, based on customer centric seconded staff, casual workers, volunteers, interns, agents, or any other person A summary of risks is presented in the document available here (p.7). A de- and data driven culture. associated with the company. tailed management approach on risks, challenges, and opportunities is devel- 3. By 2025, 40% of physical experience-based businesses will improve financial oped in this report on a topic-by-topic basis. results and outperform competitors by extending into paid virtual experiences. Every Glober is encouraged to act proactively by asking questions, seeking guidance, and confidentially reporting suspected violations of the Code of Ethics, Anti-Bribery and Anti-Corruption Policy, as well as any violation or Future Outlook & Business Perspectives We are witnessing a transcendental time for technology. There have been 4. By 2021, at least 30% of organizations will accelerate innovation to support business and operating model reinvention, fast-tracking transformation programs to future-proof their businesses. suspected violation of applicable law, rule, or regulation. Such concerns may more business disruptors in the past 5 years than in the collective 50 previous. 5. Gartner predicts that by the end of 2023, 40% of organizations will have be reported, anonymously or not, to the Leader, Talent and Culture Business Organizations have had a major opportunity to take on new areas of the applied anywhere operations to deliver optimized and blended virtual and Partner, or Legal Department. Violations to the Code of Ethics can also be market that were unthinkable before. physical customer and employee experience. reported using the Resguarda Ethics Line. Whistleblower contacts can be found on Globant's website. The rate of technological change is rapid and exponential, principally after a Organizations need a partner who can help them navigate their reality and In the Code of Ethics section we also publish, our Modern Slavery Statement organizations to adapt and utilize new technologies to keep up with the user’s innovative culture, thrilling experiences, the right technology stack and a deep issued pursuant to the UK Modern Slavery Act from the primary subsidiaries of needs. Customer engagement is already the number two strategic business understanding of how technology and artificial intelligence can significantly Globant for the United Kingdom, to account for our efforts to mitigate all types of objective for organizations worldwide, and the need to evolve rapidly has augment the way they operate and engage with their customers. At Globant modern slavery in our business or supply chain. never been more critical. we help our customers create a way forward. turbulent 2020 that outstripped the ability of many brands, businesses, and build a sustainable future business with robust business models, an agile and Last but not least, Globant is particularly careful about entering into transactions Technologies that support this new future-centric approach are meant to with its directors, executive officers, and significant shareholders to avoid the reinvent key aspects of the organization: risk of real or perceived conflicts of interest. Similarly, the Related Party Transaction Policy is intended to ensure the proper approval and reporting of related party transactions. The Insider Trading Policy provides the standards of Globant on the trading of securities of Globant or other publicly-traded companies while in possession of material non-public information. 9 Future centric approach 2020 INTEGRATED REPORT Create a way forward We believe the future belongs to Augmented Organizations, aware of their constant evolution, which adapt the strength of their culture, expand the reach of its business, reimagine the value of their experiences, and are empowered by the potential of AI and new technologies. Becoming an Augmented Organization is more than adopting a single technology. It is a fundamental shift in how a company operates. It requires a cultural change in many cases alongside complex technological and organizational changes. It means building an organization that knows how to use technology, culture and trends to unleash its potential. Augmented Organizations are empowered by artificial intelligence. They have an agile, digital culture. They build world-class experiences and adapt quickly to new market realities. They have a path into the future. A way forward. At Globant we create a way forward. S B ustain usin a ble Strate ess y g d n t e b iliti e s m e a p g a A u C y g o l o n h c e T a t a D & We apply a future centric approach that unleashes the potential of 6 core strategic pillars that transform C u l t u r e A g i l e A Org d a a niz ptiv atio e n s g n e c a g i n e ri e g p n x E E organizations from stagnant to Augmented Organizations. 11 2020 INTEGRATED REPORT We grow studios that make the way for new and existing futures. Whether it is a new conversational experience, a successful implementation of Salesforce, or hacking a business model, our studios exist to help our clients to walk the way forward in a sustainable way. Transforming an organization across each of the pillars is not something that is done simply throught technology. Our approach focuses on looking at the company as a whole and crafting a path to turn them into Augmented Organizations. We deliver these services throught our Studios and our Accelerators. Augmented Talent Augmented Payments CULTURE & AGILITY ENGAGING EXPERIENCE ADAPTIVE ORGANIZATIONS TECHNOLOGY & DATA I S O D U T S R U O Augmented Knowledge ACCELERATORS We leverage AI accelerators and disruptors that are intelligently crafted to reinvent key aspects of Augmented Coding organizations, creating a way forward in unimaginable ways. This enables companies to develop new core capabilities, leveraging our PODs model to accelerate their transition from a reactive organization to a self-standing Augmented Organization. Augmented Culture Navigate Augmented Testing Sustainable Business Studio To be ready and stay relevant, companies need different rules, processes and expertise. To do so, we created the Sustainable Business Studio, to provide organizations with knowledge, expertise and skills ready for the new green economy. SUSTAINABLE BUSINESS STRATEGY Sustainability has been a harm avoidance practice for AUGMENTED CAPABILITIES a long time. Today we are strongly convinced that The studio operates at the intersection of digital climate emergency and social changes are technology and sustainability to arm organizations fundamentally impacting people and organizations, with the tools and processes for evaluating putting at risk their very legitimacy within public, emissions, building climate strategies and fostering private, and civil society. This calls for a new approach. sustainability optimization at all industry levels. 12 Cultural HackingAgile DeliveryFuture ofOrganizationsDesignProductGamingDigital MarketingConversationalInterfacesMedia & OTTEnterpriseAppsSalesforceProcess OptimizationSustainableBusinessBusinessHackingScalablePlatformsCloud OpsData & AIUIEngineeringInternet of ThingsCyber SecurityDigital ExperiencePlatformsLife SciencesQuality Engineering High performance 2020 INTEGRATED REPORT Performance Economic value generated 2020 $814.1M Compared to $659.3M last year Financial Highlights Revenue ($M) Adjusted net income margin (%) Adjusted diluted EPS $814 $659 $522 $413 $323 13.1% 12% 11.1% 12.2% 12% $1.28 $1.09 $2.45 $2.29 $1.74 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2020 2019 Salaries $594.5M $459.7M -73% Other costs of operations $73.1M $62.4M -9% Taxes $39M $31.2M Depreciations & interests $53.4M $52M -5% -7% Other verticals 0.8% Reinvested amount $54.2M $54M 7% Banks, Financial Services & Insurance 23.7% Travel & Hospitality 8.3% Media & Entertainment 23% Professional services 12.7% $ 1,288.8M Assets 87% $ 408.8M Liabilities 64% $ 879.9M Net Worth 101% Healthcare 6.6% Consumer, Retail & Manufacturing 13% Technology & Telecommunication 11.9% Clients by currency 2020 86 % USD 4.3% Euro 9.7 % Others Revenue by geography 2020 70.5 % North America 7.6% Europe 21.9% Latam & Others Clients by revenue contribution 2020 42% 31% 11% 50 25 0 Top 1 Top 5 Top 10 14 2020 INTEGRATED REPORT CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME OTHER DATA Year ended December 31 in thousands except percentages and per share data 2020 2019 Adjusted gross profit Revenues Cost of revenues Gross profit 814,139 (509,812) 100.0% -62.6% 304,327 37.4% 659,325 (405,164) 254,161 100.0% -61.5% 38.5% Selling, general and administrative expenses (217,222) -26.7% (172,478) -26.2% Net impairment losses on financial assets Other operating (expenses) income, net Profit from operations Finance income Finance expense Other financial results, net Finance (expense) income, net Share of results of investments in associates Other income & expense in net Profit before income tax Income tax Net income for the year (3,080) (83) 83,942 1,920 (10,430) 3,601 (4,909) (622) (1,887) 76,524 (22,307) 54,217 -0.4% 0.0% 10.3% 0.2% -1.3% 0.4% -0.6% -0.1% -0.2% 9.4% -2.7% 6.7% (228) (720) 80,735 958 (6,653) (5,894) (11,589) (224) 110 0.0% -0.1% 12,2% 0.1% -1.0% -0.9% -1.8% 0.0% 0.0% 69,032 10.5% DILUTED EPS CALCULATION OF ADJUSTED (15,017) 54,015 -2.3% 8.2% Adjusted net income Diluted shares Adjusted diluted EPS Adjusted gross profit margin percentage Adjusted selling, general and administrative expenses 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 2020 318,195 39.1% 2019 266,487 40.4% (164,529) (131,090) -20.2% 123,981 15.2% 97,298 12.0% 2020 $ 97,298 39,717 $ 2.45 -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. 15 STOCK PRICE PERFORMANCE $ end of the year $217.6 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION DATA As of December 31 $37.51 Dec 2015 $33.35 Dec 2016 $106.5 $46.46 $56.32 Cash and cash equivalents Investments (current & non-current) Trade receivables (current & non-current) Other assets (current & non-current) Dec 2017 Dec 2018 Dec 2019 Dec 2020 Other receivables (current & non-current) Other financial assets (current & non-current) CASH FLOWS For the year ended December 31, Net cash provided by operating activities 2020 99,872 2019 79,735 Net cash used in investing activities (124,015) (151,584) Net cash provided by financing activities 241,546 56,712 Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of the year (1,185) 252 62,721 77,606 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) Cash and cash equivalents at end of the year 278,939 62,721 Other financial liabilities (current & non-current) Net (decrease) increase in Cash and cash equivalent at end of year 216,218 (14,885) CAPITAL RESOURCES For the year ended December 31, Capital Expenditures 2020 53,083 2019 27,776 Lease Liabilities (current & non-current) Tax liabilities Income tax payable Deferred tax liabilities Other liabilities and provisions (current & non-current) Total liabilities Total equity and non-controlling interest Total equity, non-controlling interest & liabilities 2020 278,939 19,899 201,664 15,100 41,262 16,724 41,507 3,154 101,027 86,721 90,010 392,760 1,288,767 40,506 111,881 25,968 94,198 87,598 11,804 10,511 13,698 12,664 408,828 879,939 1,288,767 2019 62,721 20,198 156,676 21,235 28,118 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 7,898 4,612 1,028 2,970 249,050 438,714 687,764 16 2020 INTEGRATED REPORT Overall result Customer survey ANNUAL AVERAGE 2020 NET PROMOTER SCORE (NPS) +67 -100 0 +30 +70 +100 NEEDS IMPROVEMENT GOOD GREAT EXCELLENT +66 +67 +57 +100 +50 0 2018 2019 2020 Recognitions Globant Worldwide Leader in CX Improvement IDC MarketScape Globant Salesforce Partner Martin Migoya Innovative CEO of the year Argentina 2020 Patricia Pomies Chief Delivery & People Officer Revelation in Innovation, Women Corporate Directors Foundations Martin Migoya CEO of the year Sadosky Awards Certifications ISO 9001:2015 ISO 27000 SOC 1 SOC 2 CMMI Argentina, Uruguay Pune, Buenos Aires, Minsk and Medellín Type 2 Type 2 globally CMMI-DEV v1.3 Maturity Level 3: globally 17 2020 INTEGRATED REPORT Data privacy & Security* With Globant’s impressive growth and dynamic business needs information and the number of users whose information was dures. The training must be repeated once a year. Also, for specific during 2020, our Legal Department has leveraged our Compliance requested also remain at zero. At this point in time, our core positions such as QA, QC, and developers, they must take an team. It aims to work closely with all of Globant’s different areas to products or services are not subject to government-required OWASP security training. provide strategic support to uphold Globant’s ethical standards, monitoring, blocking, content filtering, or censoring in any country. Code of Ethics, and internal policies. Facing rapidly changing legal requirements, they work hard to ensure regulatory compliance, As part of our approach to identifying and addressing data security which is becoming increasingly important for public opinion and risks, Globant has been ISO 27001:2013 certified since 2013. We directly impacts all businesses. It was created to assist with perform an internal risk assessment and a service provider risk various ethics and compliance matters, such as anti-money assessment on an annual basis. Once risks are identified, the laundering, anti-corruption, conflicts of interest, data privacy, and Globant Information Security Team (GIST) and the owner of each Since 2019, we have been a member of the antitrust. Aligned with this leverage and our continuous risk, decide the approach for each risk (mitigate, accept, or transfer). Cybersecurity Tech Accord, which promotes a improvement culture, a 2021 action roadmap was established after an external compliance assessment. During 2020, GIST registered a total of 60 (sixty) security incidents across all Globant offices worldwide that were In addition, before engaging any third party (clients, vendors, or identified as non-compliant with Globant and/or customer new employees), they must complete a due diligence process. The security policies and procedures. Compliance team will determine whether the third party is approved or not in integrity, ethics, data privacy, human rights, Sustainability Accounting Standards Board (SASB) activity metrics: and environmental topics. Globant informs all the purposes for None of our processes generate licensed products or subscrip- safer online world by fostering collaboration among global technology companies committed to protecting their customers and users and helping them defend against malicious threats. As a signatory, we are committed to advancing the mission of the Cybersecurity Tech Accord by partnering on initiatives that improve the gathering data from third parties, and these third parties provide tions to consumers or business intermediaries (TC-SI-000.A) security, stability, and resilience of cyberspace. By their consent when they share any personal data with Globant. Our data processing capacity was 420 Rack Units combining the global technology industry's We did not have any financial losses during this past year, whether The amount of data storage was 0.55 petabytes. 0,01% out- as a result of legal proceedings associated with user privacy or sourced (TC-SI-000.C) legal proceedings associated with anticompetitive behavior Finally, when hired, every employee must complete a security regulations. The number of law enforcement requests for user awareness training that describes our security policies and proce- 5% outsourced (TC-SI-000.B) resources and expertise, the Cybersecurity Tech Accord creates a starting point for dialogue, discovery, and decisive action. * Other corporate risks’ analysis can be found in the 20F (Item 3. Key Information - Risk Factors) 18 Global talent 2020 INTEGRATED REPORT Since the very beginning of the pandemic, our focus was to take care of our Globers and accompany as much as we could during these difficult times. We became a remote-first company, where working from home became the rule. At the same time, we implemented a wide portfolio of programs and benefits to help increase our bonding and live our culture. All these actions enabled us to finish the year in a very positive way despite the challenges we lived. When we saw how many clients and industries were affected by the pandemic, we decided to focus our efforts on training our Globers for future challenges. We implemented training strategies to reskill our employees facing business demands. We were able to add new logos and projects, capable of retaining key talent and ensuring growth in all the locations where we are present. By the end of the year Globant increased its headcount by 37% to 16,251 Globers. This tremendous achievement was possible due to three reasons: healthy organic growth in every Talent Development Center, a continuous decrease in turnover, and the acquisition of 4 companies: gA, where for the first time Globant acquired a company with more than 1,000 IT professionals, Giant Monkey Robot to leverage our gaming expertise in Chile, Xappia in Argentina and finally Bluecap in Spain, a strategic consultancy firm that leverages advanced analytics to develop new business models for financial institutions. With an average age of 33.3 years, our people are highly qualified in the latest technologies and trends. During 2020, more than 93% of our Globers participated in training, increasing 113% the number of Globers trained year over year. 2020 INTEGRATED REPORT Talent acquisition and Retention strategy We have a global presence with delivery centers in North America, Latin Since our inception, we have become a unique player for talent in the America, Europe, and Asia. Our de-centralization strategy allows us to expand countries where we have operations. Our culture is the foundation that and diversify our sources of talent in our development centers worldwide. supports and facilitates our distinctive approach. This culture can be best described as entrepreneurial, flexible, diverse, and inclusive. Diversity and Our offices are located near regional academic and engineering hubs to inclusion are key to our business. Technology requires us to innovate facilitate our access to a growing talent base. In Latin America, certain top constantly, and there is no way to innovate if we do not connect different universities from the region are located in cities where we have delivery points of view. This is why we strive to find talent in diverse places and walks centers with large operations. We work closely with those colleges, as well as of life, and why we launched several initiatives to strengthen our diversity. non-governmental organizations, tech clusters and professional organizations Overall, more than 7,000 Globers joined the company during the year. to nurture the technological ecosystem and create opportunities for growth for both Globant and our current and prospective Globers through meetups, Employee retention is one of our main priorities and a key driver of conferences, bootcamps and recruiting events. operational efficiency and productivity. We seek to retain top talent by We seek employees who are motivated to be part of a leading company that clients, a flexible work environment, training and development programs, and uses the latest technologies in the digital and cognitive field to transform non-traditional benefits. We empower our Globers to take ownership over organizations in every aspect. their careers and make the most out of these five professional development providing the opportunity to work on cutting-edge projects for world-class Geocultural diversity We encourage our Globers to work wherever they want, and be nourished by cultural exchanges. We have 56 offices in 16 countries, in LATAM, North America, Europe and Asia. And open positions and relocation opportunities. Technology Our studios consolidate expertise around a variety of emerg- ing technologies where our Globers can develop themselves, explore and learn. Industry expertise Globant works with many clients within a given industry, this enables our Globers to develop their career with an industry focus within a given account or on multiple accounts of their industry of choice. Multiple industries Similarly, Globant has near 800 clients spanning several differ- ent industries. Any Glober who would rather develop an indus- try agnostic career path or who wants to switch industries has multiple options to choose from. dimensions we provide here at Globant: Open positions Globers can develop their career growing within their current path by gaining seniority or moving internally into other roles in different areas of expertise. 2020 INTEGRATED REPORT Creating a Culture of Continuous Learning we've created a Slack Learning Community that has more than 5.2k engaged users. 80% of the learning opportunities are shared by our employees reaching 119 content creators or community ambassadors with more than 250 trainers. At Globant we believe that there is no better way to boost our Globers’ We aim to give leaders the essential tools to leap ahead in their careers, develop professional growth than promoting a continuous learning culture. One of our themselves at a swift pace, and strengthen their management skills. More than most ambitious efforts in that direction has been launching Globant University, 1,400 leaders participated in at least one virtual live session of our Leadership at the very epicenter of the pandemic. It started as a collaborative tool where Accelerator Program (LeAP). The program's main objective is to develop a training and learning experiences were designed, centralized and deployed to leadership culture based on our values and Talent Manifesto to engage the give Globers a variety of opportunities to upskill or reskill their jobs. strategies and the challenges of digital and cognitive transformation. Now, with more than 2,700 learning resources available, 29,000 training sessions Given the complexity of the COVID-19 context, it was necessary to provide and 8,000 users, Globant University has turned out to be a virtual campus further communication with a Covid-19 Feedback Session to address the where every Glober can keep on growing their skills and boost their careers at importance of leaders having meaningful conversations about performance their own pace. Also, in order to grow and enrich this initiatie more organically, with their teams. Almost 225 leaders participated in this special edition. 48% of Globers’ women participated in leadership training 17,709 25% Trained globers 32.1 33.7 Annual learning hours Per individual 568,757 Training hours 26% 22 2020 INTEGRATED REPORT Continuous Evaluation Constant and constructive feedback is as essential as any training program in terms of talent development. With that in mind, we have launched a “Continuous Evaluation” model, moving from a yearly evaluation performed by a unique leader to considering multiple evaluators having meaningful conversations that covered partial snapshots during the whole year. Continuous feedback culture creates an infinite life cycle for career develop- ment where Performance Evaluations, Feedback 360° and Feedback for Leaders happen all year long. Glober-centric culture is reflected in each action of the feedback cycle achieving more than 10,000 performance assessments, and 15 feedback sessions by 2020. 99% of our Globers received a regular performance and career development review during 2020. Also 80% of our leaders received formal feedback from their teams at least twice in the year. In addition, the Key Talent Program has been designed to recognize those Globers whose abilities, aspirations, and engagement levels have been outstanding. Our purpose is to provide our Key Talents different options to guide them in a special and unique way in their career development. As part of this initiative, the Leadership Development Plan was launched during the year. The main objective was to help leaders to keep improving their leadership skills with special coaching sessions. 23 2020 INTEGRATED REPORT Indicators 33.3 GLOBAL AVERGAGE AGE 8% Younger than 25 25% Between 25 & 29 29% Between 30 & 34 21% Between 35 & 39 17% Older than 40 2020 2019 2018 2017 2016 Globers though the years 16,251 25% 75% 11,855 22% 78% 8,384 6,753 5,631 Turnover (LTM%) Working mood 13% 2020 14.6% 2019 18.2% 2018 Assessment (over 5 pts) 4.16 2020 4.01 2019 4.05 2018 Employee engagement Participation 76% 2020 80% 2019 80% 2018 98.5% WORK CONTRACT 1.5% INTERNSHIP 72.9% Male 25.1% Female 0.3% Non- binary 1.7% Don’t want to declare Globers by country 2020 2019 Argentina 29.5% 28.4% 30% 24.9% Colombia 23.4% 21% 26.7% 19.5% Mexico 12.2% 19.5% 10.9% 16.3% India Chile 11.2% 31% 10% 31.3% 5.1% 17.2% 3.8% 14.8% Uruguay 4.2% 26.6% 4.2% 18% Peru USA Brazil Spain 4.2% 17.5% 4.7% 17.4% 3.6% 23.5% 5.1% 22.3% 2.8% 28.9% 1.6% 19.4% 2.0% 27.4% 0.8% 34.3% Belarus 0.7% 18.5% 0.9% 16% Romania 0.6% 29.5% 0.8% 29.6% UK 0.4% 24.2% 0.5% 28.6% France 0.04% 16.7% 0.03% 0.0% Canada 0.02% 0.0% 0.06% 14.3% Luxembourg 0.01% 100% 0.01% 100% 24 2020 INTEGRATED REPORT Diversity & Inclusion Women at Globant Women by seniority Female Wage (vs. male wage*) Manager 31.6% 2020 28.1% 2019 28% 2018 -1.3% 2020 -3.6% 2019 -3.6% 2018 25% 2020 Leader Senior 26.7% 2020 23.5% 2019 23% 2018 19.3% 2020 18.2% 2019 18.6% 2018 Women by position Semi Senior 23.4% 2020 21.8% 2019 22.1% 2018 Staff Areas 62% 2020 56% 2019 57% 2018 Delivery 22% 2020 19% 2019 20% 2018 Junior Trainee 33.7% 2020 26.2% 2019 23.5% 2018 38.8% 2020 35% 2019 34.6% 2018 Salary equality policy Globant´s remuneration policy attracts and retains the talent of our employees, rewarding their qualities and performance, without falling into favoritism or injustice. It is based on external competitiveness and internal equity. Aligned with this commitment, during 2020 we guaranteed equal salary for all our trainee hires and accelerated equal leveling at senior positions. Finally, previous annual salary increases, the compensation team is responsible for making a wage gap diagnosis identifying undesired salary inequalities. * The calculation is a weighted average of female/male ratio according to the number of people in each category. Only categories that are represented by more than 3 women and men are included. 25 2020 INTEGRATED REPORT Diversity & Inclusion US Employees by ethnicity Foreign nationals employees Latin 56.1% 2020 52.7% 2019 48.2% 2018 % of employees that are foreign nationals White/Caucasian 28.5% 2020 32.1% 2019 38.6% 2018 % of employees that are located offshore Asian 13.6% 2020 12.5% 2019 10.8% 2018 % Local managers vs. Expatriates 10.9% 2020 3.2% 2020 90% 2020 Black or African American 1.7% 2020 2.8% 2019 2.2% 2018 Pacific Islander 0.0% 2020 0.0% 2019 0.2% 2018 26 Kindness based culture Our call to action to build a more balanced and fair future together 3 2020 INTEGRATED REPORT to your peers At Globant, we are known for creating collaborative work environments that are open and flexible, stimulate creativity, job satisfaction, and the well-being of all our Globers and their families. With this spirit in mind, we created Globant for You (G4U), an initiative to support Globers throughout their personal life cycle within their work career. From this holistic approach, the benefits linked to compensation are no longer separated from other benefits and experiences; on the contrary, they complement each other and they make up the co-workers’ journey. G4U integrates all the benefits, campaigns, activities, and proposals of the company from a comprehensive perspective, understanding that the people's well-being depends on a good work-life balance, and taking care of both physical and emotional health. In this context, when 2020’s lockdowns started and we were forced to work remotely, we set out to be more present than ever in each Globers’ daily life, taking care of the health of Globers and their families and developing numerous prevention and awareness measures to prevent the spread of the disease. Also, by transferring our culture to their homes to help them stay connected and feel less alone despite the distances. 28 2020 INTEGRATED REPORT Activities for Kids #BeHealthy Work-Life Balance The Kids Club is a space for learning and family fun created activities developed For us, Globers are our priority, we care for them and their loved ones, that’s In the modality of remote work, the balance between working hours and person- for Globers moms and dads to share with their children. This initiative was why we make an effort to offer them the best option for Health Insurance. Com- al time can be challenging to manage. To help our Globers reduce work fatigue, launched for the Latin American and US regions and more than 600 families plementing the insurance to the local health system, and depending on the we offered them to take part in different healthy physical routines, such as: have participated. Live shows for children country and their seniority, Globers can choose between more than one pre- Extended maternity/paternity leave. paid/ private medical coverage, include their direct family, as well as dental and Employee Assistance Program: a unique, confidential, integrated and inno- Art classes for children up to 13 years old optical coverage have maternity benefits, discounts on medicines and the best vative platform that offers wellbeing benefits, ways to manage health risks, Origami classes medical services in each city. In case of business travel we give them the first and inspire positive changes. Yoga that young and old can do together class travel insurance. Marriage, moving, birthday, graduation and baby gifts. Life Insurance. Child Online trivia with prizes Vocational counseling for teenagers from 16 to 18 years old Vacation Camp where two or three daily activities are offered each day for kids (it includes an exclusive surprise show for Globers families). Recycling workshop with Cascos Verdes Online Talks Cycle for Moms and Dads To support Globers on parenting issues, we organized a series of talks with specialists where resources and practical tips are shared. For example, some of these talks deal with issues such as placing limits on our children or pediatric consultation during a pandemic. care program funded. Internet Subsidy Policy (working from home) Virtual Nutritionist Yoga sessions Mindfulness Gym@Home platform Language classes. Pension plan. Discounts in Educational Institutions. Discount, benefit and recognition program. Additionally, there is an exclusive wellness channel where we publish tips and articles on this topic. Over 2,000 Globers around the world have already par- ticipated in these activities. 29 2020 INTEGRATED REPORT Webinars Recreating the Globant Environment Safety and Security In addition to COVID-related Webinars, we launched an ex- At Globant, fun is one of the pillars of our culture. Our offic- COVID-19 brought us a new normal and with it we were forced to restructure the way we ensure clusive site with useful information on this topic. Some of es are happy, entertaining, and inspirational work environ- our employees´ safety and security at our workplaces and home. For this reason, during 2020 we the more relevant content includes: ments, and now, thanks to technology, we can bring those Guidelines on what to do if you believe that you or any environments to your homes. Some initiatives that allow member of the team has COVID for this to be replicated are: Policy and guide on working from home Encouraging leaders and managers to continue taking Guidelines on local and international travel regulations their lunch breaks together. Tips for families and children Online after office event Additionally, we developed the “Back to the Office” proto- Virtual tours to every site by Globant´s founders and col to guarantee a safe return to the offices. management The Globant Extra Mile birthday cake to each Glober At Globant, creativity and disruptive ideas are part of our Globant birthday: online activities to celebrate Glo- Birthday celebrations: at some locations, we send a identity. Today, we are going the extra mile, along with bant’s 17th birthday Globers from their homes, to create a more collaborative Virtual onboardings and get togethers where more company, motivated by and connected to its purpose. In than 7,000 people joined order to maintain that WOW! factor that characterizes our End of the Year virtual celebration culture, the following activities were conducted: Additionally, we launched a survey to get to know the situa- Events with DJs, magicians, and exclusive music groups tion of each co-worker; also, with the results, we generated Surprise gifts that Globers receive at their homes actions to contribute to the positive Globant mood. Family Week, Halloween, among others mapped out a Global occupational Safety and Security policy which looks after the well-being of Glober working from home. A mandatory e-learning program has also been established for Mexico, Peru and Colombia, hoping to launch its international English version by 2021. Complying with Peru and Colombia´s legal requirements (Order 1072/15 and 29783 Safety & Security law respectively), a management system has been implemented reaching all Globers. We measure our performance through a continual improvement program by identifying possible risks and dan- gers, monitoring incidents, and setting action plans . 30 2020 INTEGRATED REPORT Diversity & Inclusion At Globant, we are committed to continuing to build a kinder, more equitable, and inclusive workplace for every Glober, where gender equality, cultural diversity, and inclusion are cornerstones of our culture. From the first contact with the candidates, during the recruitment process, and the promise of Globant’s leadership to provide all of the necessary tools to make sure that all Globers feel comfortable, have the possibility to fully develop their potential, and to have a diverse co-creation space with various points of view; this is our commitment to all Globers. 2020 was the year of the pandemic and the year when minorities and underrepre- sented communities raised their voices against injustice and inequality. For this reason, our Diversity & Inclusion Fundamentals´ primary purpose is to drive equali- ty for all, being kind and caring toward our peers, both within and outside the com- pany. We seek to accompany minorities and give them a voice through our internal communities and with programs and initiatives that help make them visible and serve to create a safe and respectful workplace. Since 2019, we have been looking to achieve 50% women and other minorities in management positions by 2025 and to continue inspiring more women and other minorities to be part of our industry. We are very proud to say that during 2020 we were capable of increasing our female headcount from 22% to 25% overall, increas- ing female representation in every single position, including our managers, where we grew from 28% to 31% during the year. 31 2020 INTEGRATED REPORT These milestones are not the result of a single action, but the consequence of a comprehensive process that seeks to address gender issues from multiple perspectives Training Sessions We strengthened Diversity & Inclusion awareness and understanding for Globers through training sessions. We deployed a D&I Learning Program with more than 10 training initiatives. Globers were trained in cultural and ethnicity awareness, accessibility and inclusion, sexual and gender diversity, and emotional and physical well-being. D&I Internal Initiatives We implemented ongoing Diversity & Inclusion initiatives to create safe spaces for conversation, learning and development, such as Women’s Month activities during March, Pride Month in June, disability trainings and talks, panels with experts on D&I (BLM, gender identity & expres- sion, among others), Inclusive Hiring and Inclusive Leadership trainings. These initiatives are set from the beginning with a non-binary perspec- tive. Globers can choose their gender above their Legal ID statement on all our registration forms, surveys, and in employees´ databases. On top of these initiatives our top management sent a powerful message by naming a Chief Diversity Officer for the first time and by updating our Short-Term Incentives Bonus to include an accelerator component linked to ensuring Globant increases its female and non-binary management roles. Managers will be evaluated by their teams for the first time under the new Diversity and Inclusion initiative. A global survey to help diagnose areas of improvement and strength in our D&I was launched for the first time. Since then, the entire Diversity & Inclusion Strategy has been aligned from top to bottom in one single and clear goal. 4.24 Average result in the D&I survey where we measure our inclusive & diverse culture 32 2020 INTEGRATED REPORT #WomenThatBuild We designed a program where we accompany women and non-binary people through their career journey, from when they are at school through starting their first job, to further career and professional development. At each stage, we have put in place a variety of training programs and initiatives to help them thrive. Women That Build is our program to promote the inclusion and professional growth of women in our industry. It is a space where we encourage the participation of women in the technology industry, boosting talent diversity, both within the organization and outside doors, in the communities we are part of. Finally, since 2020 we have been signatories of the Women Empowerment Principles (WEPs). Globant Awards #WomenThatBuild Edition In September 2020 we launched the Globant Awards, #WomenThatBuild Edition, which seeks to recognize women who have made their careers in technology, manage innovation and collaboration, and promote diversity and inclusion. This first edition was a showcase for women who have proven to be exceptional leaders, are fostering inclusion in the industry, or have displayed outstanding talent in technological innovation. With over 12,000 nominations and more than 2,400 candidates, the Globant awards aimed to provide visibility to women working in IT, raise awareness of their talent, and inspire more women to enter the sector. More info: https://womenawards.globant.com/ Technology Executive Argentina 2020 33 2020 INTEGRATED REPORT These are the five steps that comprise “Women that Build” Educate We are working to improve access to education for women and non-binary people. We have put in place specific Globant initiatives to provide tools and knowledge. We also collaborate with educational institutions. We have offered more than 3,000 scholarships. As part of our Be kind initiative, we aim to train 15,000 women and non-binary people in technology by 2025. Accompany We accompany women and non-binary people to sustain their careers in different stages of their lives such as when becoming a mother by, offering extended parental leave. We have created the Soft Landing program, part of the Globant For You initiative, to help women as they become mothers. Another branch of this initiative is our parenting talks. So far we have provided talks to 700 families covering everything from safety and first aid, to how to cope with children during quarantine. Inspire Hire Lead This first step aims to encourage women to become interested in science, We apply diversity and inclusion practices in our recruitment processes to We aim to achieve 50% female and non-binary in management technology, and mathematics. Some of the key programs that we have put together increase awareness, understanding, and ensure diversity at scale. We have positions by 2025. To help with career development, we have specific are the Girls Programming Club in Argentina, Empower Her program in India and created an inclusive hiring training, which we are currently conducting with programs in place, such as #IamRemarkable and #SheLeads, to detect our partnership with Laboratoria, in Peru, Chile, Brazil, Mexico, and Colombia. So all of our recruiters. We’ve also created an initiative called Back in the talented women at the mid-management level and boost their career far, more than 2,000 women have so far enjoyed these programs. We have also Game (B.I.G.) to empower and encourage experienced technologists who development through mentoring. In 2020, 25 female Globers were created initiatives such as Coffee With Role Models, which are live sessions to are in a career break to rejoin the industry. mentored by senior executive mentors. generate inclusive and reflective dialogues on topics that typically have a gender perspective; Women’s Development Week, a space for women to be inspired by the latest trends in the digital and cognitive fields; and the Women that Build month, dedicated to inspire, provide tools, and share learnings with women in IT. 34 2020 INTEGRATED REPORT Community involvement 2020 pushed us to reach out to the community in new ways. We had to rethink interactions between people and organizations. This journey has resulted in us coming up with new ways to impact people’s lives. In parallel, new demands for technical knowledge arose. COVID-19 has shed light on the relevance of STEAM-related skills. Due to this, we have seen more and more people begin to turn towards the world of IT and its opportunities. We believe in the importance of education as an engine for the development and growth of countries, and we believe that technology is a key tool to guarantee inclusive and equitable access to quality education. 35 2020 INTEGRATED REPORT In this context, and thanks to the more than 1,500 Glo- banteers and the 80 NGOs that accompanied us throughout the year, we were able to carry out almost 100 programs, reaching more than 35,000 beneficiaries worldwide. Some of the initiatives we conducted were: Code Your Future Scholarship Program We awarded 700 scholarships in technological education Laboratoria Mentorship For two months, Globant volunteers in Chile mentored more than 30 women from Laboratoria on soft and tech- while promoting job placement opportunities for young nical skills, via weekly online meetups. Thanks to efforts talent in Latin America. Due to the pandemic, the training made by Globanteers and the wonderful results on many which used to be face-to-face had to be done virtually. All other initiatives, we signed a regional partnership with the beneficiaries of the Code Your Future scholarships Laboratoria to expand our impact in Latin America carried on their courses via weekly online sessions. 80 of through mentorships, tech talks, support to strengthen those graduates have now started working at Globant. Laboratoria curriculums and provide job opportunities for Laboratoria graduates. Hour of Code More than 1,100 children between the ages of 4 and 12 par- ticipated in free online sessions. In these sessions, Globant Empower Her Program Over 60 young women have been trained in 2020 in tech- volunteers introduced them to basic coding concepts in a nical and soft skills via weekly online meetups conducted fun and interactive way. by Globant Pune volunteers. This program was done in collaboration with Being Volunteer. Training in online platforms for teachers Over 3,505 teachers received training on the use of online classroom platforms and technical skills, such as C++, JavaScript and Google Analytics. 106 volunteers from across Globant organized these trainings, strengthening classroom work with current job demands. HolaCode Globant volunteers helped develop the curriculum of the HolaCode mentoring program, which helps migrants, ref- ugees and asylum seekers in Mexico start a career in the tech sector. Girl Coders Club We are coordinating free online clubs in eight cities. During 2020, these clubs have reached more than 150 teenage girls, introducing them to the world of technolo- gy. In 2020, we were able to open the first Girl Coders Club in Medellín, Colombia. Female Globers inspired and taught 15 girls from public schools about the possibilities that the tech world offers. 36 2020 INTEGRATED REPORT SENA Mentorships This year, our Globers have been volunteering their time and energy to mentor and accompany 90 students. They Q&A Mentorships with Coding Dojo and Code Fellows Globanteers in the US put together a series of Q&A Men- provide them with counseling on their professional and torship sessions involving Coding Dojo and Code Fellows, personal tracks. Mentors and students meet two hours a local coding camps/schools. Various Globers shared their week via streaming. Alianza Futuro Digital Mentorships Globanteers in Medellín have assisted and supported the “Alianza Futuro Digital” program. During 2020, this program mentored 15 students from public schools. They were mentored on how to think, develop, test, and launch a digital product. This was done through practi- cal courses on UX, front end, back end, testing, and per- formance. #MujeresEnLaNube We allied with Fundación Plan to provide IT education to 100 young women who were victims of the armed conflict in Bogota, Valle del Cauca, Cauca, Choco, Sucre and Boli- var. Women strengthened their leadership, entrepreneur- ial and digital skills and learned basic web design and de- velopment concepts, 4IR technologies and digital design for animation and games. experiences across technologies, how they got involved in tech and participated in several virtual Q&A sessions with almost 100 attendees and students through the second half of the year. Inspirational workshops In Uruguay, students from the educational institution Ánima participated in inspirational workshops organized by Globant volunteers. In Argentina, volunteers participat- ed in workshops with a women’s community center in Mar del Plata, and non-governmental organizations such as FONBEC, Mujeres 2000, and Fundación Formar among others, impacting over 200 people. Professional practices with Ánima 20 teenagers are participating in six month-long profes- sional practices. These consist of receiving mentoring sessions 12 hours a week by Globant professionals, in IT and administration. By the end of the year, together with Mercado Libre and Digital House, we launched the Certified Tech Developer program, designed to achieve the rapid job placement of thousands of young people from Latin America in the technology industry. With the objective of achieving a diverse and inclusive call, 2,500 scholarships will be provided to cover 95% of the program´s total cost. In the next two years, both companies seek to train more than 10,000 young people from Latin America. The program will be carried out together with Digital House and is committed to creating a new academic concept based on agile methodologies with a strong practical orientation so that students can gain experience. The initiative was created to acknowledge the needs of the market and will be consistently updated as technology evolves. 2020 INTEGRATED REPORT Donation campaigns: an innovative and sustainable way to address the emergency In April, in order to raise funds to donate to public and private organizations fighting COVID-19, we organized the #AllAgainstCOVID campaign. Globant invited Globers and clients to join the cause by working one extra day. Globant donated the proceeds generated on that day and duplicated the profit by adding a corporate donation of medical supplies to 20 different organizations in twelve countries. In July, in light of the global conversation held after acts of racism and discrimination in the US, we held the #All4Equality campaign. This campaign aimed to raise funds to donate to organizations that promote equality and foster the dignity and respect of affected local minorities. As a result, we raised over $270,000 between both campaigns. We accomplished this thanks to the commitment of over 950 Globers, who worked more than 7,600 extra hours, and our clients who accompanied us. In October, we donated more than 42,000 test kits to the National Ministry of Health of Argentina, to strengthen the national health system's response capacity in the framework of the global health emergency. Finally, to tackle the shortage of personal protective equipment at the beginning of COVID-19, volunteers used 3D printers to construct 3,600 face masks. These were donated to medical professionals in 47 hospitals and institutions in 5 different countries. Social investment Number of beneficiaries 36,500 12,132 6,181 2020 2019 2018 Number of actions 76 128 Pro bono hours 41,687 1,584 Volunteers 2020 Argentina 17% Colombia Mexico 12% 10% Uruguay 9% Chile 8% US 7% India 5% Spain 5% Peru 4% Brazil 2% 152 841 11% of total payroll 38 2020 INTEGRATED REPORT WIP to humanity Our purpose is to transform the world, one step at a time. We want to empower both people and organizations to evolve and be ready for a digital, cognitive and sustainable future. We are aware that we can connect with millions of consumers around the world through the technology we develop. So, we want to help organizations to Be kind to humanity through technology, uniting with our clients embracing a shared vision overcoming ethical challenges and incorporating inclusive practices. We are pioneering better ways of doing business empowered by technology, understanding the impact we generate, and solving the world’s biggest problems. 2020 INTEGRATED REPORT Accessibility Today's digital solutions need to provide equal access CleanTech - Performance We leverage our extensive experience in business analytics Speculative Design This practice aims to address big societal issues and create and equal opportunity to people with disabilities though to help clients understand how advances in clean products and services for those scenarios. With speculative compliance with accessibility standards. We help our technologies affect industry structure and competitive design we want to reimagine and reshape the future with customers to improve the quality of their digital dynamics, and to make better sustainability decisions technology that benefits humanity. products by removing barriers that prevent interactions, based on new insights. We empower organizations to ensuring accessibility to WCAG 2.0 AA Compliance, make these choices by developing diagnostic tools and Section 508 and ADA. benchmarks for technologies. Ethics in AI With our capabilities and knowledge around Artificial Intel- Inclusive Design Every design decision has the potential to include or ex- Augmented collaboration Increasingly leaders are looking for technology to help ligence (AI) and digital trends, we can help organizations clude users. At Globant we maintain a proactive focus on identify and improve how employees perceive and thrive and change how they relate to users and employees meeting the needs of a broad audience of people with experience the values of an organization. This is the core in an ethical way. diverse capabilities, requirements and aspirations. We do of what we refer to as an augmented culture. Companies this by embedding accessibility into the foundation of our that have built an augmented culture are able to design practice. Our technology and processes are de- effectively use AI and other tools to foster the most signed to deliver increased access and reduced friction to important aspect of human behavior to enhance ensure the inclusion of as many people as possible. productivity while working from home; the ability to connect, understand and recognize others. Green Data We provide technical expertise and digital tools to calcu- late, manage and reduce energy, carbon and resource footprints on a path to certifying carbon neutrality. 40 2020 INTEGRATED REPORT Technology for good: our impact through digital solutions Real-time interactive dashboard To help governments manage available beds, ventilators, and other essential supplies, in each hospital and in real-time. 36 volunteers donated over 7,200 pro-bono hours for its development. Coronavirus UY A Globanteer team collaborated in the creation of this app to pro- vide people in Uruguay with information about COVID-19 and Technology has the potential to make an impact at sanitary precautions. scale, allowing solutions to benefit people worldwide. In the COVID-19 context, as part of our Taking Care initiative, we developed various pro-bono applications and digital tools for governmental entities to use, impacting more than 5 million people. Our main developments have been: CloserToYou An app that allows people to find available volunteers near them, and receive help from those closest to them. 17 volunteers donat- ed over 6,700 pro-bono hours for its development. CuidAR Globant collaborated with other companies in the development process of the Argentinean Ministry of Health’s app CuidAR. Also, during 2020, we contributed to a Plant Breeding project. Given the current global situation, food scarcity in underde- veloped countries is expected to rise, due to low yield crops, climate change, and supply chain shortages. One of the ap- proaches to deal with these challenges has been known for more than 10,000 years selective breeding. Our Life Sciences studio has been working with the Integrat- ed Breeding Platform (IBP), on selection methods based on genotypic and phenotypic information for plant breeding programs. The tool, developed pro bono by Globant, incor- porates decision-making functionality based on plant pedi- gree analysis. The IBP made this tool available to institutes looking to optimize their crop improvement programs. Finally, in partnership with Propuesta DALE!, we developed DALE!, a video game that teaches children how to read and write. We designed the game considering the needs of chil- dren living in vulnerable situations and whose access to qual- ity education is often limited. 41 to the planet Be kind to the Planet is a team effort to transform our company into a net-positive environmental agent. As part of these efforts, we have established an Environmental Policy, where we commit to honoring the Earth's physical limits, carrying out our activity within sustainable development parameters. This implies raising the bar on the ecosystems we live in through a collaborative approach among Globers, suppliers, clients and other stakeholders. 2020 INTEGRATED REPORT Climate Strategy Our approach to the climate emergency consists of developing different environmental management actions to tackle the most critical issues first, and aim to achieve substantial measurable contributions to our industry and value chain. 2022-2030 Augmented Planet Net positive, carbon free operations 2021 Achieve carbon neutrality 2020 Running 100% on renewable energy 43 2020 INTEGRATED REPORT Renewable energy, our first step to net-zero In 2019, Globant publicly expressed its goal of using renew- tees of Origin ) certification to ensure compliance with the able sources of energy for all its global operations in 2020. reporting standards. During 2020, the estimation of energy sources and their Renewable energy contracts have all been finalised and ex- use was developed according to the premises established ecuted in January 2021 (an event occurring after the end of by several reporting initiatives, including RE100, CDP and the reporting period), complying with the aim of supplying the GHG protocol. After a detailed internal research and all Globant operations with renewable electricity. calculation, we obtained an estimate on 95% of energy use across the organization. Direct and indirect use of Renewables sources are mainly wind and solar, with com- energy was appraised. By examining the geographic avail- plementary hydropower contracts in those jurisdictions ability of renewable energy sources, we identified the rel- where RECs/guarantees of origin were not available. In the evant electricity sources employing only certified origins latter case, water management practices were also based on REC (Renewable Energy Certificate), I-REC (Inter- reviewed to validate the efficiency and sustainability of national Renewable Energy Certificate ) and GO (Guaran- renewable energy sources. 44 2020 INTEGRATED REPORT Consumption and guarantees of origin are to be rounded off at the first deci- When certified energy was not available, energy has been sourced from mal. Countries of operation not included in the energy model do not represent neighbouring countries to ensure compliance with international standards. more than 5% of the total consumption. For modeling purposes, consumption This has only been the case where countries’ electricity networks were con- for the countries in the list has been estimated with a 10% slack to consider esti- nected. Our model so far does not consider online / synchronic matching of mation error and the coverage of sites not included. supply and demand of renewable energy. Guarantees of origin Guaranteed origin Country Argentina Brazil Chile Colombia India Mexico Peru Spain UK Uruguay USA Consumption 2,599 MWh 44 MWh 40 MWh Type Wind Wind Wind 2,601 MWh 44 MWh 41 MWh 1,089 MWh Hydropower 1,089 MWh 687 MWh 437 MWh 83 MWh 73 MWh 28 MWh 220 MWh 568 MWh Solar PV Wind Wind Wind Solar PV Wind Wind 690 MWh 437 MWh 84 MWh 73 MWh 28 MWh 220 MWh 567 MWh Total general 5,869 MWh 5,874 MWh 100% 100% 101% 100% 100% 100% 101% 99% 100% 100% 100% 101% Going beyond renewables As further measures taken to reduce onsite consumption, we continued with our data center virtualization policy. We achieved a 29 to 1 infrastructure ratio, meaning each physical data center hosted on average 29 virtual ones during 2020. This action allowed us to have 150% more data centers, while energy consumption increased just 27% over 2019 metrics. Regarding digital storage, we con- sumed 6% less energy per Glober in the past year. Furthermore, the company is also pursuing a process for the reduction of emissions outside of the organization (Scope 3), including in the baseline for 2020 those emis- sions related to employee commuting, external storage, and cloud computing, as well as impacts from the increase in remote work due to the COVID-19 pandemics. These components were also modelled and included in the scope three estimates. The company has identified strategies to offset, reduce and compensate for the emis- sions related to that scope, and plans to execute actions to achieve carbon neutrality during the upcoming period. 45 2020 INTEGRATED REPORT Carbon Neutrality Kick-off In 2020 we started developing a carbon management system, including the most significant sources of emissions in all of our operations. Grounded on our carbon footprint baseline recalculation in 2019, we extended the coverage to ensure that our model collected at least 95% of our energy consumption. 20.000,00 t CO2 e Compared with last year's measurement and following global trends, we ex- panded the baseline of our Scope 3 (external emissions) to new sources, 18.000,00 t CO2 e namely employee commuting, third-party IT infrastructure vendors, and household consumption attributable to Working From Home (WFH) practices. 16.000,00 t CO2 e The latter played a significant part in our carbon budget of 2020 as a conse- quence of the global COVID-19 pandemic. Most of our operations were dis- placed to WFH setups. Even though the practice of remote work was business as usual at Globant, the massive shift to such working method made us recon- sider the representativeness and relevance of these emissions. As a result of our comprehensive research, our estimates resulted as follows. 60% Reduction Despite the growth in operations and inclusion of new components in our emissions model, the reduction in global travelling and commuting allowed a significant decrease in scope 3 total CO2 budget while the transition to 100% renewable energy cancelled all emissions from scope 2. This action positively impacted on our carbon footprint with a reduction from the 19,520.59 Tn CO2e of 2019 to 7,794,53 Tn CO2e in 2020. 14.000,00 t CO2 e 12.000,00 t CO2 e 10.000,00 t CO2 e 8.000,00 t CO2 e 6.000,00 t CO2 e 4.000,00 t CO2 e 2.000,00 t CO2 e 0,00 t CO2 e Baseline change 2019 In 2019, in Scope 1 emissions were included. In this report, we are reex- presing S3 including components such as third party suppliers and employee commuting to the 2019 baseline. COVID-19 effect Due to the loockdowns and banned travel policies around the world, our commuting and business travel activi- ties have been reduced significantly. WFH schemes did not increased the footprint that much. 2014 2015 2016 2017 2018 2019 2020 Renewable electricity sourcing With the adoption of the policy of 100% renewable energy sourcing, our Scope 2 emissions drop to zero in 2020 46 2020 INTEGRATED REPORT Our 2020 emissions model in detail In 2020, scope 1 emissions represented only 3.97% of Globant total emissions, whereas the most significant source of greenhouse gases emissions is indirect. Scope 1 309.78 t CO₂ e 3.97% 59.4% Fuel consumption 39% Natural Gas consumption 1.6% Fugitive emissions Scope 3 7,484.75 t CO₂ e 96.03% 33.4% Commuting 29.1% Work from home 36.8% Air travel 0.7% Data Centers Scope 1 As indicated before, our renewed carbon model covers at least 95% of the opera- tions, with a maximum 5% margin of error. Modelling of Scope 1 consisted of an inventory of all devices and infrastructures with direct energy consumption. Its esti- mated use per day was compared with the energy sources' purchase to ensure a proper estimation. Scope 1 emissions totalled 309,78 Tn of equivalent CO2 , mostly due to heating and backup electricity production in generators. Scope 2 Electricity use at physical locations was surveyed to ensure coverage of at least 95% of operations. Consumption at some leased facilities was estimated by landlords in proportion to space occupied, whereas some spaces operated jointly with other ten- ants were not material to the overall estimate. By ensuring electricity provision from renewable sources - as previously explained -, we can balance or cancel or offtake our electricity-linked emissions. Note that elec- tricity consumption related to WFH schemes has not been considered within this scope, but under scope 3. Scope 3 Scope 3 estimates were based on data on business travelling (ticket by ticket) and employee commuting. The latter was estimated from the investigated behavior of 1,681 volunteer Globers who reported their commuting habits in our operations worldwide. To conduct this research, we developed MyFootprint, that allowed Globers to keep a record of their activities. Subsequently, a team of experts studied these behaviors and extrapolated the results to a model covering the rest of the staff reaching a global estimate. Since 2020 was an especially complex year for regular commuting, behaviors of 2019 were adopted as the baseline for average estimations, which were then applied to the reduced commuting patterns observed during 2020 by modelling the lockdowns/WFH schemes.*** 2020 INTEGRATED REPORT Net-zero roadmap The achievement of 100% renewable energy in 2020 is an intermediate step to reaching the 2021 goal of becoming carbon neutral. That neutrality is planned according to three simultaneous efforts consisting of: 1. Ensuring the provision from renewable sources of electricity 2. Designing optimized programmes for reducing energy consumption at MyFootprint: a group of Globanteers created MyFootprint, a web app that calculates Globers’ the operational level - including the efficiency in the WFH schemes carbon footprint. 3. Offsetting remaining emissions due to external factors not managed by ***For the calculation of greenhouse gases generated by the WFH during the organisation 2020, similarly to the calculation performed on commuting, we designed a survey for Globers worldwide to understand WFH behaviours in the differ- However, the neutrality itself shall be accompanied by long-term measures to ent regions. We identified different methods of heating and air conditioning gradually achieve an enhanced model for decarbonisation, i.e. not reliant on associated with daily work, and modelled the consumption of different ap- offsetting. With the adoption of trajectories of reductions based on the Sci- pliances connected to the electricity network in each country. ence-Based Targets initiative (SBTi), the actions regarding improvement of operational measures might be aligned with these trajectories. Finally, first-tier or vendors of third-party infrastructures such as data cen- tres and cloud computing were examined in their environmental practices, The commitment with net-zero is a company priority and a commitment to and their emissions data was collected for our estimation. According to engage clients and stakeholders in the dialogue of net-positive relevance. vendors estimates, the technology footprint does not exceed 50 tons of Our influence and technical capacity provide new tools for our clients to CO2e; the amount was included within the overall estimate of electricity achieve substantial emission reductions thanks also to the newly created consumption under WFH practices for simplicity. Sustainable Business Studio. Carbon Intensity* tnCO2e per Glober 1.65 2019 0.79 2018 0.48 2020 *Carbon intensity is the measure of emissions related to a specific activity metric. We have measured intensity against people for the last years.The adoption of the renewable plan had a significant positive impact on the reduction. 48 Additional Information Materiality Analysis In 2019 we defined our materiality analysis, and the sustainability team investigated the legislation and norms of the application of ESG in the regions we operate. We decided to include content related to the consequences of the pandemic among our Globers, and we con- tinue to promote meaningful dialogues with our stakeholder com- munity. Also in 2020 we used the codified SASB Standards to enrich our materiality approach. The need to apply the environmental pre- cautionary principle has not been determined under the analysis of the company’s impacts and the aspects covered by this principle. 49 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 Tech Integrity, AI ethics, privacy High Environmental stewardship High Wellbeing and work-life balance High Community engagement Occupational health and safety High High High High High High Our goals of leading in the digital and cognitive space, make these impacts meaningful for our clients and our corporate development. Thanks to the size of our workforce we represent a role model for the diversity and inclusion KPI of technology industry within of the countries we operate. It impacts our relationship with the clients and our the business sustainability model. Our economic performance is relevant to our investor community and indirectly crucial for our business sustainability. As a publicly listed company we adhere to the highest ethics and compliance standards to obtain the trust from all stakeholders, investors, communities and our people. Our technological work affects many aspects of direct and indirect users (clients of clients) and society as a whole, as increasingly relevant to. We are immersed in a global climate crisis that forces all relevant companies to take immediate action and lead. Our people are a key strategic component and stakeholders 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 a vacuum and our stakeholders continuously demand higher levels of involvement on our behalf. Medium Our people and our stakeholders are key strategic polls to care for. Delivery capacity also depends on occupational health, safety policy and protocols implemented to counteract the pandemic. Public policy Medium Medium Indirect economic impacts Medium Medium Active participation in public policiesd is related to participating in industry dialogue. Our governmental stakeholders count on Globant to produce best practices. Our capacity to influence, leveraged by investments in new ventures, has become increasingly relevant to our society year over year, leading not only by example but also by investment 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 Occupational health and safety Public policy Indirect economic impacts S R E D L O H E K A T S R O F E C N A V E L E R S T R A T E G I C R E L E V A N C E 50 Stakeholder engagement Clients Chambers & Business Organizations AEP Energy, American Express, BBVA, Bci, Boehringer Ingelheim, CSIS, CESSI, Argencon, Asociación Nacional de Empresarios de Co- Cabify, Chicago Tribune, Coca Cola, Danone, Dell EMC, EXPRESS, lombia (ANDI), Cámara Nacional de la Industria Electrónica de EA, Embraer, FOX, Inter-American Development Bank, Interbank, Telecomunicaciones y Tecnologías de la Información de Mexico LATAM Airlines, LinkedIn, MACH, Mercado Libre, Metropolitan (CANIETI), Asociación de empresas de Tecnologías de la Infor- Police, National Geographic, Nespresso, NISSAN, OSRAM, Pernod mación y la Comunicación de Uruguay (CUTI), ATICMA, Asociación Ricard, BR Petrobras, PRISMA, PR Newswire, PUMA, Rockwell Au- Peruana de desarrolladores de Software (APESOFT) , ENDEAVOR, tomation, Royal Caribbean, Santander Rio, Trina Turk, UBISOFT, Nasscom, SEAP, Council of the Americas, ASUG, Cámara Franco Unilever, Walmart Argentina, YPF, among others. Española, Asociación Argentina de Capital Privado (ARCAP), Clients: https://www.globant.com/our-work AMDIA, Asociación Civil Red de Apoyo (RAP), ADVA, Cámara Em- Governmental Offices National Governments of Argentina, Uruguay, Colombia, Mexico, Chile and India. The government of the cities of Buenos Aires, presas del Polo Informático Tandil (CEPIT), Cámara empresaria de Tandil (CET), Polo IT de Buenos Aires, Polo Tecnológico de Bahía Blanca, Cluster Tecnológico de Córdoba, AMCHAM (Argentina y Chile), Asociación Civil Python Argentina, CACE, UIA, IDEA, ACDE, Asociación Empresaria Argentina (AEA), Asociación para el Progre- Montevideo, Bogota and the Republic of Belarus. Provincial gov- so de España (APD), among others 235,481 USD Total Membership in 2020 ernments of Buenos Aires, Chaco, Tucuman, Santa Fe, Cordoba, Mendoza; municipalities of Tandil, Bahia Blanca, Rosario, Mar del Plata, Medellin, San Francisco among others. The Embassies of the United States, Uruguay, Chile, India, Colombia, Mexico, Romania, Belarus, EAU, Spain and the United Kingdom in Argentina. Argen- tinian embassies in other countries. Media Print, online, television and radio media from Argentina, Uruguay, Peru, Brazil, Colombia, Mexico, USA, UK, India, Spain, Singapore and Germany. 51 Civil Society Organizations & Education Centers ARGENTINA: Asociación Civil Dale!; Club de Chicas Programadoras dad de Palermo (UP); Universidad Abierta Interamericana (UAI); Uni- USA: New York Presbyterian Hospital; National Action Council for Universidad de Ciencias Aplicadas (UPC); Pontificia Universidad versidad del Salvador (USAL); Universidad CAECE (Mar del Plata); Uni- Minorities in Engineering (Nacme); Children SOS Village, Chicago; Catolica del Perú (PUCP); Universidad Mayor de San Marcos (UMSM); versidad Tecnológica Nacional - Facultad Regional de Tucuman; Uni- Youth Care; Code Fellows; Coding Dojo; Black Girls Code; Computing Universidad Federico Villarreal; Instituto San Ignacio de Loyola (ISIL); versidad del Norte de Santo Tomás de Aquino (UNSTA); Universidad for all; University of North Carolina; Duke University; Columbia Uni- Cibertec; Universidad de Lima (UL); Zegel IPAE; Universidad Tec- (Fundación TINC); Asociación Cooperadora del Hospital de Niños Dr Nacional de Tucumán (UNT); Universidad Nacional de Jujuy; Universi- versity; New York University; Rensselaer Polytechnic Institute; Univer- nológica del Perú (UTP); Universidad San Martin de Porres (USMP); Ricardo Gutiérrez; Biblioteca Popular C. Saavedra; Fonbec; Caritas dad Tecnológica Nacional - Facultad Regional de La Rioja; Universidad sity of California, Berkeley; Stanford University; University of Wash- Universidad de Ingeniería y Tecnología (UTEC); Universidad Nacional Argentina; Hospital Rivadavia, CABA; Hospital de Niños de La Plata; Nacional de Catamarca (UNCA); Universidad Champagnat; UTN- ington; Seattle University de Ingeniería (UNI); Universidad San Ignacio de Loyola (USIL); Univer- Sistema Integral de Salud de Tandil, Buenos Aires; COOPERADORA Regional de San Rafael; UTN- Regional de Mendoza; Centec TDF (Tier- INDIA: Sassoon Hospital Pune; Samarthanam Trust for the Disabled; sidad de Piura; Centro de Educación Superior Valle Grande. DE LOS HOSPITALES DE MAR DEL PLATA (H.I.G.A. Y H.I.E.M.I.); Fun- ra de fuego). Being Volunteer, Pune; Janakalyan Raktapedhi; Maharashtra Institute UK: British Red Cross, London; Voyage; University of Cambridge; Uni- dación Rosario, Santa Fe.; Banco de Alimentos de Córdoba; Fun- COLOMBIA: Fundación Neumonológica Colombiana, Bogota; Fun- of Technology (MIT); Pune Institute of Computer Technology (PICT); versity of Oxford; Imperial College London; University of Edinburgh; dación Htal. Municipal de Agudos de Bahía Blanca; Fundación Chaco dación EPM, Medellin; Fundación Plan; Aldeas Infantiles; SENA Vishwakarma Institute of Technology (VIT); Department of Computer University College London (UCL); University of Manchester; Universi- Solidario; Haciendo Camino, Santiago del Estero; Fundación Casa Tolima, Medellin, Bogota; Saving the Amazon; Sistema de Bibliotecas Science (PUCSD); College of Engineering Pune (COEP); National Insti- ty of Warwick; King's College London; Queen's University Belfast; Grande; Fundación Cimientos; Fundación Reciduca; Puerta 18; Escue- Públicas de Medellin; Save The Children; Banco de Alimentos de tute of Design (NID); Indian Institute of Information Technology (IIIT). University of Birmingham. la de Maestros; Fundación Sonrisas; Fundación Equidad; Fundación Colombia; Fundación Solidaridad por Colombia; Fundación Colombi- SPAIN: Cruz Roja de Madrid; Accem; Migracode; Ingeniera SOY; Em- BRAZIL: JUCO; Associação Fala Mulher; University of São Paulo Garrahan; Organización RETHO; ATAD (Asociación Tandilense de anitos; Fundación El hormiguero, Medellin; Fundación Salvemos a bajada Argentina en Madrid; Universidad Politécnica de Cataluña (USP); Universidade Federal De São Paulo (UNIFESP); Pontifical Cath- Ayuda al Discapacitado); CIANE (Asociación de Padres); Cooperativa Cristian; Fundación VASED; Universidad Los Andes; Universidad (UPC); Universidad Politécnica de Madrid (UPM); Universidad olic University of São Paulo,(PUC); Instituto De Ciências Matemáticas de Recuperadores Tandil; DANE; APADEA; Catedral de La Plata; Mu- Piloto; Escuela Colombiana de Ingeniería Julio Garavito; Universidad Politécnica de Valencia (UPV); Universidad Carlos III; Universidad e de Computação. nicipalidad de Rosario; Casa de la Mujer de Mar del Plata; Jardines Javeriana; Universidad Nacional; Universidad Militar en Multimedia; Autónoma de Madrid; Universidad Complutense de Madrid; Univer- BELARUS: Belarusian State University of Informatics and Radioelec- barriales de la ciudad de Mar del Plata; Fundación Formar; MiMochi; Universidad Sabana; Universidad Externado; Universidad El bosque; sitat de Girona; Universitat Ramon Llull; Universidad Antonio de Ne- tronics; Belarusian National Technical University; Belarusian State Asociación Civil Red de Apoyo y Participación; Asociación Civil Educa- Institución Universitaria Politécnico Grancolombiano; Universidad brija; Universidad Europea de Madrid; Universidad Pontificia Comillas University; Gomel State University. tiva Escocesa; Asociación Civil Orillas; Fundación Pilares; Fundación de Antioquia; Universidad de Medellin; Universidad Nacional; Uni- (ICAI-ICADE); Universidad Rey Juan Carlos; Univ Francisco de Vitoria ROMANIA: Red Cross Romania; Technical University; "Babes-Bolyai" Haciendo Lío; Colegio Vallejuelos; Hogar Santa Catalina; Mujeres versidad EAFIT; Politécnico; Universidad San Buenaventura Medellin; de Madrid; U´TAD; FACULTAT D'INFORMÀTICA de Barcelona. University. 2000; Fundación Formar; Fundación AVENIR; ASHOKA; Canales; Fun- Fundación Universitaria Luis Amigo; Universidad Pontíficia Bolivari- CHILE: Hospital Dr. Sotero del Río; Techo Chile; Aldeas Infantiles San- dación Trauma; Fundación Horacio Zorraquin; Fundación Manos ana; Universidad Autónoma Latinoamericana; Fundación Universi- tiago; Laboratoria; Incluyeme; Duoc UC - Educación Superior Técnico Comprometidas; Centro Educativo y Comunitario San Marcelino; taria María Cano; Institución Universitaria Medellin; Fundación Uni- Profesional de Chile; Universidad de Chile; Instituto Nacional de Cooperativa El Correcaminos; Recuperadores Urbanos Yerbabuena versidad Católica del Norte. Capacitación Profesional (Inacap); Pontificia Universidad Católica de (Tucumán); Instituto Tecnológico de Buenos Aires ( ITBA); Escuela de MEXICO: Cruz Roja Mexicana, DF; Hola Code; Aldeas Infantiles, DF; Chile; Universidad Técnica Federico Santa María; Universidad de San- Arte Multimedia Da Vinci; Universidad del CEMA; Universidad CAECE; Fundación FAE; Fundación AVON; Fundación CAM (Centro de Ayuda tiago de Chile; Universidad Diego Portales. Universidad Nacional de Avellaneda (UNDAV); ORT Argentina; Univer- para la Mujer); Recicladora TAME; Servicios a la Juventud (SERAJ); Fed- URUGUAY: Sistema B (Nos Cuidamos entre Todos); Ánima Montevi- sidad Catolica Argentina (UCA); Universidad de Belgrano (UB); Univer- eración Mexicana de Empresarios LGBT; Cruz Roja Tlalnepantla; Hos- deo; Aldeas Infantiles Montevideo; Fundacion Bensadoun Laurent; sidad Nacional de La Matanza (UNLAM); Universidad Nacional de pital General Zona 24; Insurgentes; Hospital General Zona 48 San Mujeres en UX; Universidad de la república (UDELAR); ORT Montevi- Lanús; Universidad Católica de La Plata; Universidad de Buenos Aires Pedro Xalpa; Clínica Medicina Familiar Iztapalapa II, Issste; IMSS Hos- deo; Universidad Católica de Uruguay; Universidad de Montevideo; (UBA); Universidad Argentina de la Empresa ( UADE); Universidad Na- pital General /MF8; Hospital Regional 1ro de Octubre del ISSSTE; Insti- Consejo de Educación Secundaria (CES); Universidad de la Empresa cional de La Plata (UNLP); Universidad Tecnológica Nacional FRBA ( tuto Tecnológico Autónomo de México (ITAM ); Universidad Nacional (UDE). UTN); Universidad Tecnológica Nacional LA PLATA ( UTN LP); Universi- Autónoma de México (UNAM); POLITÉCNICO NACIONAL de México. PERU: Juguete pendiente, Lima, Care Perú; Aldeas Infantiles Perú; Total Donations in 2020 1,289,155 USD MKT with cause Charitable Donations Community Investment Pro bono hours $140,376 $520,000 $113,790 $515,000 52 Sustainability Index: GRI Content Index Standard / Framework Code General Disclosures Disclosure Disclosure Title Page number / Answer SDG / UN Global Compact Principle GRI 102 GRI 102 102-1 102-2 Name of the organization 4 Activities, brands, products, and services About Globant: https://www.globant.com/about GRI 102 102-3 Location of headquarters 102-4 102-5 102-6 102-7 102-8 102-9 102-10 Location of operations Ownership and legal form Markets served Scale of the organization Information on employees and other workers Supply chain Significant changes to the organization and its supply chain 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. About Globant: https://www.globant.com/about 4 - No governmental institutions own more than 5% of the total voting rights. 6 6-24-25-26 24-25-26 5-6-11-12 No changes 102-11 Precautionary Principle or approach 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. 102-12 102-13 102-14 102-15 102-16 102-17 102-18 102-19 External initiatives Pacto Global, CSA and Ecovadis. Membership of associations Statement from senior decision-maker Key impacts, risks, and opportunities 4 3 9 Values, principles, standards, and norms of behavior 8-9 Mechanisms for advice and concerns about ethics Governance structure Delegating authority 9 7 8 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 SDG 9 SDG 5-8-10 | P.6 P.7 P.10 P.10 53 Standard / Framework Code General Disclosures Disclosure Disclosure Title Page number / Answer SDG / UN Global Compact Principle Executive-level responsibility for economic, environmental, and social topics Executive Vice President Corporate Affairs and Co-Founder 102-20 102-22 Composition of the highest governance body and its committees 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 102 102-23 Chair of the highest governance body 102-24 Nominating and selecting the highest governance body 102-25 Conflicts of interest 102-32 Highest governance body’s role in sustainability reporting 102-35 Remuneration policies 102-36 Process for determining remuneration 102-37 Stakeholders’ involvement in remuneration 102-40 List of stakeholder groups 102-41 Collective bargaining agreements 102-42 Identifying and selecting stakeholders 102-43 Approach to stakeholder engagement 102-44 Key topics and concerns raised 102-45 Entities included in the consolidated financial statements SDG 10 | P.6 7-8 CEO 20F 20F 9 25 25 No 51-52 8 51-52 51-52 50 20F 54 Standard / Framework Code General Disclosures Disclosure Disclosure Title Page number / Answer SDG / UN Global Compact Principle GRI 102 GRI 102 GRI 102 GRI 102 GRI 102 GRI 102 GRI 102 GRI 102 GRI 102 GRI 102 GRI 102 102-46 102-47 102-48 102-49 102-50 102-51 102-52 102-53 102-54 102-55 102-56 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 49-50 50 46 No changes January 1, 2020 to December 31, 2020 2019 Annual 66 4 53-62 66 55 Standard / Framework Code Disclosure Disclosure Title Page number / Answer SDG / UN Global Compact Principle 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 Material Aspect: Indirect Economic Impacts GRI 103 GRI 103 GRI 103 GRI 203 GRI 203 103-1 103-2 103-3 203-1 203-2 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 Proportion of senior management hired from the local community Explanation of the material topic and its Boundary The management approach and its components Evaluation of the management approach 14-16 14-16 14-16 14-16 14-16 24 24 24 24 - - - Infrastructure investments and services supported 40-41-48 Significant indirect economic impacts 40-41-44-48 SDG 9 SDG 8 56 Standard / Framework Code Disclosure Disclosure Title Page number / Answer SDG / UN Global Compact Principle Material Aspect: Anti-corruption GRI 103 GRI 103 GRI 103 103-1 103-2 103-3 Explanation of the material topic and its Boundary The management approach and its components Evaluation of the management approach GRI 205 205-1 Operations assessed for risks related to corruption GRI 205 GRI 205 205-2 205-3 Communication and training about anti-corruption policies and procedures Confirmed incidents of corruption and actions taken 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 8-9 8-9 8-9 Globant has a criteria in place to measure the probability that an act of corruption may occur. According to this measurement, the risk matrix we currently have indicates that the risk level that such an act may occur is low. No significant corruption risks have been identified. 8-9 Zero incidents 8-9 8-9 8-9 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices Zero incidents P.10 P.10 P.10 P.10 SDG 4 | P.10 P.10 57 Standard / Framework Code Material Aspect: Energy GRI 103 GRI 103 GRI 103 GRI 302 GRI 302 GRI 302 GRI 302 Material Aspect: Emissions GRI 103 GRI 103 GRI 103 GRI 305 GRI 305 GRI 305 GRI 305 GRI 305 GRI 305 GRI 305 Disclosure Disclosure Title Page number / Answer SDG / UN Global Compact Principle 103-1 Explanation of the material topic and its Boundary 103-2 103-3 302-1 302-2 The management approach and its components Evaluation of the management approach Energy consumption within the organization Energy consumption outside of the organization 302-3 Energy intensity 302-4 Reduction of energy consumption 103-1 103-2 103-3 305-1 305-2 305-3 305-4 305-5 305-6 305-7 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 Emissions of ozone-depleting substances (ODS) Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions 42 42 42 45-47 45-47 45-47 45-47 42 42 42 46-47 46-47 46-47 48 46 R410 Refrigerant gas refueled in on-site air conditioners: Bahía Blanca 1,3 kg Resistencia 1,5 kg P.7-8-9 P.7-8-9 P.7-8-9 SDG 13 | P.7-8-9 SDG 13 | P.7-8-9 SDG 13 | P.7-8-9 SDG 9-13 | P.7-8-9 P.7-8-9 P.7-8-9 P.7-8-9 SDG 13 | P.7-8-9 SDG 13 | P.7-8-9 SDG 13 | P.7-8-9 P.7-8-9 SDG 19-3 | P.7-8-9 SDG 9-13 | P.7-8-9 n/a SDG 13 | P.7-8-9 58 Disclosure Disclosure Title Page number / Answer SDG / UN Global Compact Principle Standard / Framework Code Material Aspect: Waste GRI 103 GRI 103 GRI 103 GRI 306 103-1 103-2 103-3 306-2 Explanation of the material topic and its Boundary The management approach and its components Evaluation of the management approach Management of significant waste-related impacts 42 42 42 With the colaboration of different recycling cooperatives, civil society organizations and governmental officies we´ve recycled 22,198.5 Kg of waste representing a 33.23% of our total waste. On the other hand, 66,807 kg of solid, non hazardous waste were disposed. No hazardous waste was generated. Material Aspect: Environmental Compliance GRI 103 GRI 103 GRI 103 GRI 307 103-1 Explanation of the material topic and its Boundary 103-2 The management approach and its components 103-3 Evaluation of the management approach 42 42 42 307-1 Non-compliance with environmental laws and regulations No sanctions reported Material Aspect: Employment GRI 103 GRI 103 GRI 103 GRI 401 GRI 401 GRI 401 103-1 Explanation of the material topic and its Boundary 103-2 103-3 401-1 401-2 401-3 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 20-21 20-21 20-21 7,011 new hires including organic and inorganic growth. 29-30 626 moms and dads took their leave; and 95% of them returned to work after their leave ended during 2020 P.7-8-9 P.7-8-9 P.7-8-9 P.7-8-9 P.7-8-9 P.7-8-9 P.7-8-9 P.7-8-9 P.6 P.6 P.6 SDG 5,8 | P.6 SDG 5,8 | P.6 SDG 5,8 | P.6 59 Page number / Answer SDG / UN Global Compact Principle Standard / Framework Code Disclosure Disclosure Title Material Aspect: Labor/Management Relations GRI 103 GRI 103 GRI 103 GRI 402 103-1 103-2 103-3 402-1 Explanation of the material topic and its Boundary The management approach and its components Evaluation of the management approach Minimum notice periods regarding operational changes Material Aspect: Ocupational Health and Safety GRI 103 GRI 103 GRI 103 GRI 403 GRI 403 103-1 103-2 103-3 403-1 403-6 Explanation of the material topic and its Boundary The management approach and its components Evaluation of the management approach Workers representation in formal joint management–worker health and safety committees Promotion of worker health Material Aspect: Training and Education GRI 103 GRI 103 GRI 103 GRI 404 GRI 404 GRI 404 103-1 103-2 103-3 404-1 404-2 404-3 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 20-21 20-21 20-21 Globant does not have established by Collective Agreement or Law the obligation of a notice for operative changes. Depending on the case, sanity and critical reason are appealed to evaluate the changes. 30 30 30 30 30 20-22 20-22 20-22 20-22 22-30 Percentage of employees receiving regular performance and career development reviews 98% of total employees received a regular performance and career development review during 2020. SDG 8 P.1-4 P.1-4 P.1-4 SDG 3-8 | P.1-4 SDG 3-8 | P.1-4 P.6 P.6 P.6 SDG 4-5 | P.6 SDG 4-5 | P.6 SDG 4 | P.6 60 Standard / Framework Code Disclosure Disclosure Title Material Aspect: Diversity and Equal Opportunity GRI 103 GRI 103 GRI 103 GRI 405 GRI 405 103-1 103-2 103-3 405-1 405-2 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 men Material Aspect: Non-Discrimination GRI 103 GRI 103 GRI 103 GRI 406 103-1 103-2 103-3 406-1 Explanation of the material topic and its Boundary The management approach and its components Evaluation of the management approach Incidents of discrimination and corrective actions taken During this past year, the company reviewed a total of 15 incidents, 7 of these were related to discrimination. We have implemented the following remediation plans: change of position/project of the person making the report, mandatory training for the person accused in the incident, conversations with and warnings to the person accused of misconduct. All of these measures are reviewed by the Human Resources and Legal Labor departments of the company. In case a significant disciplinary sanction is implemented, approval is also requested from the Audit Committee. All of these incidents have been closed. Material Aspect: Human Rights Assesments GRI 103 GRI 103 GRI 103 GRI 412 103-1 103-2 103-3 412-3 Explanation of the material topic and its Boundary The management approach and its components Evaluation of the management approach 18 18 18 Significant investment agreements and contracts thaT include human rights clauses or that underwent human rights screening. No significant investment agreements and contracts Page number / Answer SDG / UN Global Compact Principle 24-26 24-26 24-26 7-24-26 25 9 9 9 P.1-6 P.6 P.6 SDG 5 | P.6 SDG 5 | P.6 P6 P6 P6 61 P.1-2 P.1-2 P.1-2 P.1-2 61 Page number / Answer SDG / UN Global Compact Principle P.1 P.1 P.1 SDG 9 | P.1 35 35 35 35-38 8-9 8-9 8-9 No political contributions were made P.10 Standard / Framework Code Disclosure Disclosure Title Material Aspect: Local Communities GRI 103 GRI 103 GRI 103 GRI 413 103-1 103-2 103-3 413-1 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 Material Aspect: Public Policy GRI 103 GRI 103 GRI 103 GRI 415 103-1 103-2 103-3 415-1 Explanation of the material topic and its Boundary The management approach and its components Evaluation of the management approach Political contributions Material Aspect: Marketing and Labeling GRI 103 GRI 103 GRI 103 GRI 417 GRI 417 GRI 417 103-1 103-2 103-3 417-1 417-2 417-3 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 Incidents of non-compliance concerning product and service information and labeling Incidents of non-compliance concerning marketing communications 18 18 18 N/A Globant provides IT services, we do not sell products. We have not received fines or penalties regarding the information of our services. N/A 18 18 18 Explanation of the material topic and ts Boundary The management approach and its components Evaluation of the management approach Material Aspect: Customer Privacy GRI 103 GRI 103 GRI 103 GRI 418 103-1 103-2 103-3 418-1 Material Aspect: Socioeconomic Compliance GRI 103 GRI 103 GRI 103 GRI 419 103-1 103-2 103-3 419-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data We had 1 incident concerning a potential breach, however the customer was not affected by it. Explanation of the material topic and its Boundary The management approach and its components Evaluation of the management approach 8-9 8-9 8-9 P.1 P.1 P.1 P.1 P.1 P.1 P.1 P.1 P.1 P.1 Non-compliance with laws and regulations in the social and economic area No incidents reported 8-9 P.2 62 Topics Accounting Metric Category Unit of Measure Code Page number SASB Content Sustainability Disclosure Topics & Accounting Metrics Environmental Footprint of Hardware Infrastructure (1) Total energy consumed, (2) percentage grid elec- tricity, (3) percentage renewable 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 Quantitative Gigajoules (GJ), Percentage (%) Thousand cubic meters (m³), Percent- age (%) Environmental Footprint of Hardware Infrastructure Discussion of the integration of environmental consid- erations 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 TC-SI-130a.1 TC-SI-130a.2 TC-SI-130a.3 TC-SI-220a.1 44-47 Not material 42-48 Regarding data privacy and freedom of expression, we updated our website privacy policy, and our cookies policy. Regarding the last one, it was a restructuring of our entire modality of acceptance of Cookies to improve our "Privacy by Default" concerning the use of Cookies on our sites. We worked in the transparency of the purpose, and the treatment that will be given to the data we receive from candidates, the press, potential businesses or any stakeholder in general. Both policies take into account the applicable laws and regulations in the countries where we operate as well as good prac- tices. In addition, we have designated our StarMeUp OS’ 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 applied to StarMeUp OS. All of our employees working in this product receive special training periodically and sign an Employee Confidentiality Statement. Data Privacy & Freedom of Expression Number of users whose information is used for secondary purposes Quantitative Number TC-SI-220a.2 Globant informs all the purposes for which it gathers data from third parties. These third parties provide their consent when they share any personal data with Globant. Data Privacy & Freedom of Expression Total amount of monetary losses as a result of legal proceedings associated with user privacy Quantitative Reporting Currency TC-SI-220a.3 During this past year, we did not have any financial losses whether as a result of legal proceedings associated with user privacy Data Privacy & Freedom of Expression Data Privacy & Freedom of Expression 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 We also maintain at zero the number of law enforcement requests for user information and the number of users whose information was requested. 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 To this point in time our core products or services are not subject to government-required monitor- ing, blocking, content filtering, or censoring in any county. (1) Number of data breaches, (2) percentage involving personally identifiable information (PII), (3) number of users affected Quantitative Number, percentage (%) TC-SI-230a.1 18 63 Topics Accounting Metric Category Unit of Measure Code Page number Sustainability Disclosure Topics & Accounting Metrics Data Security Description of approach to identifying and addressing data security risks, including use of third-party cyber- security standards Discussion and Analysis n/a TC-SI-130a.1 Recruiting & Managing a Global, Diverse & Skilled Workforce Percentage of employees that are (1) foreign nationals and (2) located offshore Quantitative Percentage (%) TC-SI-330a.1 Recruiting & Managing a Global, Diverse & Skilled Workforce Employee engagement as a percentage Quantitative Percentage (%) TC-SI-330a.2 Quantitative Percentage (%) TC-SI-330a.3 As part of our approach to identifying and addressing data security risks, Globant is ISO 27001:2013 certified since 2013. The ISO 27001 is a standard that provides a model for establishing, implement- ing, operating, monitoring, reviewing, maintaining, and improving an information security manage- ment system (ISMS). As part of the ISO 27001 controls we perform an internal risk assessment and a service providers risk assessments on an annual basis. Once risks are identified, the Globant Informa- tion Security Team (GIST) along with the owner of each risk decide the aproach for each risk (mitigate, accept or transfer). 24 25 26 Recruiting & Managing a Global, Diverse & Skilled Workforce Percentage of gender and racial/ethnic group repre- sentation for (1) management, (2) technical staff, and (3) all other employees Intellectual Property Protection & Competitive Behavior Total amount of monetary losses as a result of legal proceedings associated with anticompetitive behavior regulations Managing Systemic Risks from Technology Disruptions Number of (1) performance issues and (2) service disruptions; (3) total customer downtime Quantitative Reporting Currency TC-SI-520a.1 During this past year, we did not have any financial losses whether as a result of legal proceedings associated with anticompetitive behavior regulations Quantitative Number, Days TC-SI-550a.1 No performance issues or service disruptions during the reporting period Managing Systemic Risks from Technology Disruptions Description of business continuity risks related to disruptions of operations Discussion and Analysis n/a TC-SI-550a.2 Risk Detected - Mitigation Method Power loss: UPS and Power Generators Loss of connectivity: Redundant internet links Catastrophic / Pandemic event / Office not accessible: Alternate working site / Working from home (if allowed by customer) External Network Attack: IDS / Regular Internal and External Vulnerability Scans Office Intrusion / Device steal: CCTV cameras/ 24/7/365 Security Guards and Monitoring Station Information Loss through Vulnerabilities exploit: Device hardening / Corporate patching, encryption and antivirus policy Not Intentional Data Loss: Regular Awareness Training Activity Metrics 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 None of our processes generate licensed products or subscriptions to consumers or to business intermediaries. See note TC-SI-000.B Our data processing capacity was 420 Rack Units. 5% outsourced. Petabytes, Percentage (%) TC-SI-000.C The amount of data storage was 0.55 petabytes. 0,01% outsourced. Integrated Report Content Contents Organizational overview and external environment What does the organization do and what are the circumstances under which it operates? Governance How does the organization’s governance structure support its ability to create value in the short, medium and long term. Business model What is the organization’s business model? Risks and opportunities What are the specific risks and opportunities that affect the organization’s ability to create value over the short, medium and long term, and how is the organi- zation dealing with them? Strategy and resource allocation Where does the organization want to go and how does it intend to get there? Performance Outlook Basis of preparation and presentation To what extent has the organization achieved its stra- tegic objectives for the period and what are its out- comes in terms of effects on the capitals? What challenges and uncertainties is the organization likely to encounter in pursuing its strategy, and what are the potential implications for its business model and future performance? How does the organization determine what matters to include in the integrated report and how are such matters quantified or evaluated? Aspect 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 Leadership structure, including the skills and diversity Specific processes used to make strategic decisions 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 Inputs Business Activities Outputs Outcomes Key risks and opportunities that are specific to the organization 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 Objetctives and strategic plans Quantitative information Impact on capitals Relationships with stakeholders Organization’s expectations about the external environment Mechanisms to address challenges and opportunities Materiality Boundaries Frameworks Page number 28-39 6-7-24-25-26 11-12 11-12 5-7 5-6-7 5-6-15-16-17 7-8 8-9 27 8 25 5 5 5 5 8 8 3-5 5-14-15-16 5-14-15-16 51-52 9 9-12 50 50 5-50 65 Report Profile Stock Independent Audit Firm* Sustainability Advisor Transfer Agent Date of last report Globant is listed on NYSE under the ticker GLOB PwC * Sustainability disclosures have not been externally verified. Crowe American Stock Transfer & Trust Company, LLC 2019 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 From January 1, 2020 to December 31, 2020. 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 66 

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