Alliance Data Releases 2018 Sustainability Report Including Updated, Balanced Scorecard

June 27, 2019 — Alliance Data Systems Corporation (NYSE: ADS), a leading global provider of data-driven marketing and loyalty solutions, today released its 2018 Sustainability Report, which presents progress made over the past year and highlights connections to the Company’s current transformational business strategy.

The 2018 report focuses on progress made amid a changing environment impacting Alliance Data’s overall business strategy in areas like governance and risk mitigation; responsible banking and the data-driven economy; workforce development and community investment.

“When faced with disruption, adaptability is essential to remaining competitive. We have made a deliberate effort as part of Alliance Data’s broader sustainability strategy to evolve so that we can continue to be relevant and create value for our stakeholders,” said Joseph Motes, EVP, chief administrative officer, general counsel and secretary of Alliance Data. “The Company’s measurable progress across sound corporate and board governance, responsible management practices and our commitment to operate with purpose, transparency and integrity further demonstrates we are focused on the right priorities for sustained success.  Additionally, we are pleased that in 2018, several dimensions of our business practices were recognized by leading industry third parties and ESG ratings organizations, further validating our performance and approach.”

The report provides an in-depth look at efforts the Company has made over the last year to bring a strategic and data-focused approach to priority areas of corporate responsibility. A balanced scorecard and GRI Content Index outline key financial, environmental and operational disclosures, while break-out articles, associate quotes and stories provide context and examples throughout.

Key highlights of the 2018 sustainability report include:

• Adapting to changes in consumer privacy – The Company anticipated the 2018 EU GDPR regulations – as well as emerging cybersecurity threats – by strengthening its IT security policies and preparing its clients for the changes. In April 2018 the Company hosted an event in London, open to clients and peers, to help attendees understand GDPR’s impact on their businesses. A highlight of that presentation was the introduction of an online consent tool developed by Epsilon to help advertisers and publishers easily comply with the law.
• Improving safeguards in credit and lending – Last year Comenity and Comenity Capital Bank – the banks behind Alliance Data’s consumer credit programs – invested in a new analytics software to enhance modeling capabilities for consumers requesting credit. These improvements build on fair and responsible banking practices such as unbiased underwriting and credit limits that do not surpass consumers’ “ability to pay.” In early 2018 Alliance Data’s card services business also appointed a new chief risk officer, who led the implementation of a new risk management framework across the business.
• Building a diverse and inclusive workplace – Alliance Data continued to make strides in operationalizing a plan to build a workplace culture of diversity and inclusion. In 2018 a cross-functional Diversity & Inclusion Council was established to promote gender and skills diversity and formalize a strategy to solve key business issues. As a result of these efforts, Alliance Data was selected for inclusion in the Bloomberg Gender-Equality Index and also named to the Forbes’ Best Employers for Diversity and Fortune’s Best Workplaces for Diversity lists.
• Using data to drive community investment – In 2018 the Company continued to advance its three-year goal of investing $20 million in “Data for Good” programs that provide measurable impact. For example, over the past year, Alliance Data invested in expanded data-driven technology at food banks near Alliance Data associates’ communities in and around Albuquerque, Plano, Chicago and San Francisco. This technology is helping these organizations deliver food to people in need in more effective and impactful ways.   

The report also highlighted Alliance Data’s strong Environmental, Social and Governance (ESG) practices, with recognition in the FTSE4 Good Index Series. The series is used by global investors interested in companies' ESG-related performance.

To learn more about the Company’s existing corporate responsibility initiatives addressing top priorities, future goals, and progress, please view the full 2018 Sustainability Report.

About Alliance Data

Alliance Data^® (NYSE: ADS) is a leading global provider of data-driven marketing and loyalty solutions serving large, consumer-based industries. The Company creates and deploys customized solutions, enhancing the critical customer marketing experience; the result is measurably changing consumer behavior while driving business growth and profitability for some of today's most recognizable brands. Alliance Data helps its clients create and increase customer loyalty through solutions that engage millions of customers each day across multiple touch points using traditional, digital, mobile and emerging technologies. An S&P 500, FORTUNE 500 and FORTUNE 100 Best Companies to Work For company headquartered in Columbus, Ohio, Alliance Data consists of three businesses that together employ approximately 20,000 associates at more than 100 locations worldwide.

Alliance Data’s card services business is a provider of market-leading private label, co-brand, and business credit card programs. Epsilon^® is a leading provider of multichannel, data-driven technologies and marketing services, and also includes Conversant^®, a leader in personalized digital marketing. LoyaltyOne^® owns and operates the AIR MILES^® Reward Program, Canada’s most recognized loyalty program, and Netherlands-based BrandLoyalty, a global provider of tailor-made loyalty programs for grocers.

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Forward Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding additional strategic initiatives, the pending Epsilon transaction and whether closing conditions for such transaction will be satisfied or waived and the expected use of proceeds therefrom, our expected operating results, future economic conditions including currency exchange rates, future dividend declarations and the guidance we give with respect to our anticipated financial performance.

We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. These risks and uncertainties include, but are not limited to, factors set forth in the Risk Factors section in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Further risks and uncertainties include, but are not limited to, the pending transaction involving Epsilon, whether such transaction will be completed, the possibility that closing conditions for the transaction may not be satisfied or waived, the impact of additional strategic initiatives on us or our business if any transactions are undertaken, and whether the benefits of such transactions can be achieved.

Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

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Shelley Whiddon – Media 
214-494-3811
shelley.whiddon@alliancedata.com

Read the Report