Universal Music Group N.V.
Climate Impact & Sustainability Data (2021)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:18,598 tCO2e
Scope 1 Emissions:1,704 tCO2e
Scope 2 Emissions:7,789 tCO2e
Scope 3 Emissions:9,105 tCO2e
Total Energy Consumption:13,681 MWh (standard sources) + 7,982 MWh (renewable sources)
Waste Generated:1,057 tons (non-hazardous), 761 tons recycled
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Achieved carbon neutrality in Germany through emissions-reduction measures and carbon offsets.
- Increased procurement of locally-sourced packaging by 10% in France.
- Launched a green packaging program (greenpack) in France.
Social Achievements
- Launched the Universal Music All Together Now Foundation to support education, health/wellness, and racial equity and justice.
- Expanded artist welfare initiatives in response to the COVID-19 pandemic, including financial support through MusiCares and Help Musicians UK.
- Launched the Historically Black Colleges and Universities (HBCU) Internship Program.
- Launched ASCEND program to accelerate representation of Black employees in senior executive roles.
- Launched U.M.She Leads mentorship program for rising female leaders.
Governance Achievements
- Established a dedicated ESG function within the Finance organization, reporting to the Board.
- Updated the company’s fraud risk assessment.
- Implemented a comprehensive privacy and cybersecurity compliance program.
Climate Goals & Targets
Long-term Goals:
- Achieve net-zero emissions (target year not specified).
Medium-term Goals:
- Set Science-Based Targets for emissions reduction and submit for SBTi validation by 2023.
Short-term Goals:
- Migrate to 100% cloud-based operations by 2025.
- Extend greenpack implementation to all standard frontline releases by the end of 2022.
Environmental Challenges
- Challenge to attract, sign, and retain successful artists.
- Challenge to attract and retain internal talent.
- Risks associated with responsible content.
- Risks associated with the company’s carbon intensity.
- Privacy and data security.
- Governmental and regulatory challenges.
- Changes in laws and regulations.
- Impact of COVID-19 pandemic on business operations and revenue streams.
Mitigation Strategies
- Investing in artist development and marketing.
- Implementing a comprehensive employee wellbeing program.
- Developing and implementing a robust content protection program.
- Setting Science-Based Targets for emissions reduction.
- Implementing a comprehensive privacy and cybersecurity compliance program.
- Engaging in lobbying and advocacy efforts.
- Developing business continuity plans.
- Expanding eCommerce and direct-to-consumer businesses.
Supply Chain Management
Responsible Procurement
- Embedding sustainability component into RFP process for global travel
- Incorporating sustainability clause into commercial contracts
- Incorporating UMG Supplier Social Responsibility Policy into manufacturing agreements (Bravado)
Climate-Related Risks & Opportunities
Physical Risks
- Chronic risks such as rainfall, temperatures, drought, and sea level rise
Transition Risks
- Political, legal, technological, and market risks
Reporting Standards
Frameworks Used: UN SDGs, CDP, TCFD, GRI (reference)
Third-party Assurance: Limited third-party attestation of data collection efforts
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 13 (Climate Action)
- Goal 8 (Decent Work and Economic Growth)
- Goal 10 (Reduced Inequalities)
- Goal 4 (Quality Education)
- Goal 3 (Good Health and Well-being)
UMG's initiatives contribute to these goals through various environmental, social, and governance programs.
Sustainable Products & Innovation
- Greenpack packaging
- Sustainable merchandise collections