Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate crisis
• Circular economy and waste
• Attracting and retaining engaged talent
• Equity, Diversity and Inclusion
• Data privacy and cyber security
• Responsible procurement
• Communities
• Impacts of company acquisitions
• Robust governance

Environmental Achievements

• Achieved a 14% decrease in emissions per FTE from FY20 baseline
• Attained ISO 14001 certification at our Head Office
• Extended Scope 3 reporting to include EMEA and APAC
• Reduced water usage by 40% since FY20

Social Achievements

• elvis became a certified B Corp
• Completed a materiality assessment
• Rolled out the Next 15 Academy online learning platform
• Conducted an employee engagement survey
• Added two US citizens to the Board as Non-Executive Directors
• Next 15 UK employees completed 674 volunteering missions

Governance Achievements

• Established the ESG Committee
• Established the EDI Council and its Steering Committee
• Updated Anti-bribery and Corruption Policy
• Launched Safecall Hotline, a new whistleblowing service
• Completed a materiality assessment

Climate Goals & Targets

Environmental Challenges

• Macroeconomic uncertainty and societal change
• Reputational risk
• Failure to innovate and evolve offering
• Reliance on key clients
• Cyber and information security
• Rate of professionalisation of Next 15
• Business continuity
• Global tax
• Legal and compliance
• Fraud and misreporting
• Currency risk
• Attraction and retention of talent
• Succession planning
• Equity, Diversity and Inclusion

Mitigation Strategies

• Investing in technological infrastructure, diversifying portfolio, maintaining conservative balance sheet
• Strengthening corporate governance, standardized policies, Ethics Group, centralized approach to data security, whistleblowing mechanisms
• Horizon-scanning, conversations with clients, fostering innovation culture, robust Board challenge
• Diversifying customers and suppliers, risk management system, business development capabilities, client satisfaction monitoring
• Information Governance Board, cyber security certifications, Data Protection Officer, risk and vulnerability management
• Risk management process, regular review of Next 15 Head Office team, standardized acquisitions and integrations, steering groups
• Evolving Business Continuity Framework, Business Continuity Plans, Incident Response Teams
• In-house tax team, external professional tax advice, avoiding aggressive tax planning
• Code of Conduct, employee policies and training, in-house and external legal expertise, assurance programme, accreditations
• Oversight of financial reporting, minimum controls framework, centralized banking facility, Internal Audit function
• Monitoring foreign exchange exposure, net investment hedges, short-term cash flow forecasts, natural currency hedging
• Learning and development programs, competitive compensation, performance reviews, staff events, employee engagement surveys
• Succession plans, talent identification process, monitoring of Board effectiveness
• Raising awareness, providing training, diversity network initiative

Supply Chain Management

Supplier Audits: 30% coverage

Responsible Procurement

• Supplier Code of Conduct
• Supplier Assessment Form

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: B Corp, TCFD

Certifications: ISO 14001, ISO 27001, Cyber Essentials Plus

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Supplier Engagement
• Employee Wellbeing

Environmental Achievements

• Joined the Science Based Targets initiative (SBTi) for reducing greenhouse gas emissions.
• Progressed emission reduction measures including further renewable energy transition, greening measures in our offices, major supplier engagement, improved Scope 3 measurement, and expansion of ISO 14001 across three additional sites.
• Achieved ISO 14001 certification at three additional sites (Manchester, Marlow, and 3rd Avenue Head Office in New York).

Social Achievements

• Revitalised ED&I Council and introduced an enhanced ED&I framework.
• Designed and piloted Employee Listening Sessions.
• Introduced collaborative working groups around business topics such as AI as well as Equity, Diversion and Inclusion (‘ED&I’) working groups.
• Implemented a coaching apprenticeship scheme in the UK.

Governance Achievements

• Refined Ethics Group Process and Scorecard with inclusion of rotational representation and rolled out #ChangeTheBrief training across brands.
• Strengthened governance with the roll out of our policy ‘Framework’, linking bonus for Directors and CEOs of Brands to Employer Net Promoter Score (‘eNPS’) and completing CFD Disclosure.

Climate Goals & Targets

Environmental Challenges

• Softness in the Tech sector impacting revenue in the Customer Engagement segment.
• Macroeconomic headwinds impacting client budgets and investment.
• Increased compliance requirements and regulatory scrutiny.
• Attracting and retaining talent in a competitive market.
• Measuring and reducing Scope 3 emissions.

Mitigation Strategies

• Tight cost management across the Group.
• Strategic investments in AI and data strategies.
• Robust governance procedures and regular Board reviews.
• Investment in talent development and employee wellbeing initiatives.
• Collaboration with suppliers and industry partners to improve Scope 3 measurement and reduction.

Supply Chain Management

Responsible Procurement

• Next 15 Supplier Onboarding and Risk Assessment policy pack
• Supplier Code of Conduct
• ESG Reporting requirements for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heatwaves, wildfires, hurricanes, flooding)
• Resource scarcity (water, electricity)

Transition Risks

• Economic disruption from climate change
• Changing consumer behavior
• Greenwashing legislation
• Carbon pricing
• Disclosure requirements (advertised emissions)

Opportunities

• Increased revenue from clients committed to sustainable growth
• Opportunities in circular economy and low-carbon solutions

Reporting Standards

Frameworks Used: SBTi, B Corp, CFD, SECR

Certifications: ISO 14001

Awards & Recognition

• B Corp certification (elvis, Archetype UK, Archetype US)

Environmental Metrics

ESG Focus Areas

• Equity, Diversity and Inclusion
• Attracting and retaining engaged talent
• Employment practices and remuneration
• Employee health, safety and wellbeing
• Data privacy and cyber security

Social Achievements

• Rolled out the Next 15 Academy, a learning management system, across the Group, delivering core policies on modern slavery, whistleblowing, anti-bribery and corruption, IT, and family leave policies.
• Rolled out the first Group-wide employee net promoter score survey (‘eNPS’), resulting in a score of 39 on a scale of -100 to 100.
• Improved inclusive hiring practices using software to neutralize job descriptions and adverts, promoting blind screening, and using diversity to promote role models.

Governance Achievements

• Appointed a female Chair to the Board, achieving a majority share of female Non-Executives on the Board.
• Approved and adopted a new Board Diversity Policy in December 2022.

Climate Goals & Targets

Environmental Challenges

• Maintaining a balance between flexible working and effective communication and collaboration, especially for early-career employees.
• Standardizing compensation packages across diverse brands and markets.

Mitigation Strategies

• Addressing communication and collaboration challenges through training for line managers in FY24.
• Providing guidance on fair remuneration to brands, while allowing for discretionary bonuses and benefits on a fair and equitable basis.

Supply Chain Management

Climate-Related Risks & Opportunities