Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Diversity & Inclusion
• Employee Well-being
• Supply Chain Sustainability
• Environmental Sustainability

Environmental Achievements

• 31% reduction in greenhouse gas emissions per employee
• 66% reduction in paper consumption per employee

Social Achievements

• Launched employee well-being program
• Improved diversity and inclusion initiatives
• Partnered with organizations to support communities

Governance Achievements

• Established anti-corruption training for all employees
• Improved board diversity

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Maintaining employee engagement and well-being
• Meeting evolving stakeholder expectations

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented employee well-being programs
• Enhanced stakeholder engagement

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of conduct, supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Action
• Human Capital
• Diversity, Equity & Inclusion
• Responsible Media & Content
• Data Ethics & Privacy

Environmental Achievements

• Reduced Scope 1 and Scope 2 emissions by 55% in 2020 (largely due to office closures related to the COVID-19 pandemic)
• Introduced a four-stream waste disposal system at corporate headquarters
• Expanded Scope 3 emissions measurement to include supply chain impacts
• Became a founding member of AdGreen to mitigate the environmental impact of production

Social Achievements

• Released data on the race and gender composition of leadership at U.S. operations (first in the industry)
• Increased the number of promotions of Black Americans at senior levels by a factor of 50%
• Adopted a Human Rights Policy
• Maintained a 20% supplier diversity spend level for several years, totaling $500 million annually

Governance Achievements

• Increased ISS scores in governance
• Published a policy on Board Diversity
• Maintained 80% independent directors on the board in 2020
• 40% women directors on the board in 2020

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events
• Increased air-conditioning costs due to rising global temperatures
• Compliance with increasingly stringent client and investor sustainability policies
• Reputational risk for lack of action on climate change

Mitigation Strategies

• Developed alternative sourcing strategies
• Investing in energy-efficient buildings (LEED certifications)
• Proactive climate action strategy and commitment to net-zero emissions
• Partnering with clients on sustainability matters

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Human Rights Policy
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels
• Increased air-conditioning costs

Transition Risks

• Regulatory changes
• Market shifts
• Client and investor pressure

Opportunities

• Development of energy-efficient products
• Shift in consumer and market preferences towards sustainable solutions
• Resource efficiency
• Attracting and retaining talent

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN Global Compact, UN Sustainable Development Goals

Third-party Assurance: PricewaterhouseCoopers LLP (PwC)

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Various initiatives throughout the report align with these goals

Awards & Recognition

• The One Show Awards’ Holding Company of the Year
• U.S. Effie Awards for Most Effective Holding Company and Creative Holding Company of the Year
• Dow Jones Sustainability Index (DJSI) North America
• S&P 500 ESG
• S&P Global 1200 ESG
• FTSE4Good Index
• Bloomberg Gender Equality Index
• Human Rights Campaign’s Corporate Equality Index

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Reduced market-based Scope 2 emissions by 4,118 metric tons of CO2e through increased renewable energy consumption.
• Reduced electricity usage at data centers by 775 metric tons of CO2e through IT efficiencies.
• Reduced primary enterprise data center square footage by 60% in 2020 and power consumption by an additional 5.73% in 2021.
• All new tenant buildouts since 2016 are required to be in LEED-certified buildings whenever feasible.

Social Achievements

• Launched Sustainability Allies, a business resource group focused on environmental initiatives.
• Revamped domestic and international travel policies to incorporate sustainable business travel practices.
• Introduced the Tripkicks platform to provide employees with information on low-carbon travel options.

Governance Achievements

• Board-level oversight of climate-related issues through the Board of Directors, Corporate Governance and Social Responsibility Committee, and Audit Committee.
• Established an ESG Steering Committee to oversee climate-related risks and opportunities.
• Implemented a Third-Party Risk Management (TPRM) process to assess and manage risks associated with third-party suppliers.

Climate Goals & Targets

Environmental Challenges

• Chronic physical risks from sea-level rise, potentially decreasing asset value and increasing operating costs.
• Reputational risk from inadequate climate-related efforts.
• Increased indirect costs from rising global average temperatures (air conditioning).

Mitigation Strategies

• Business continuity planning incorporating extreme weather events and rising sea levels.
• Proactive climate action strategy to mitigate reputational risk.
• Investing in energy-efficient and sustainable office spaces (LEED certifications).

Supply Chain Management

Supplier Audits: 100%

Responsible Procurement

• Supplier Code of Conduct
• ESG-related questions in supplier selection process
• Preferred Vendor list

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Sea-level rise

Transition Risks

• Changing market preferences
• Changing legal conditions

Opportunities

• Development of new products and services related to sustainability
• Increased demand for sustainable products and services
• Reduced operating costs through energy efficiency.

Reporting Standards

Frameworks Used: CDP, GRI, SASB, TCFD, UNGC

Third-party Assurance: AICPA (AT105)

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)

Partnerships with organizations like charity:water to bring clean water to communities.

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced market-based Scope 1 and 2 emissions by 20% from 2022 to 2023, mainly due to increased purchase of RECs.
• Reduced location-based Scope 1 and 2 emissions by 9% from 2022 to 2023 due to a 13% reduction in operating floorspace.

Social Achievements

• Not disclosed

Governance Achievements

• Established board-level oversight of environmental issues, with accountability outlined in board mandate and regular reporting from the CSO and CFO.

Climate Goals & Targets

Environmental Challenges

• Sea level rise impacting asset value in US offices.
• Increased air-conditioning costs due to rising temperatures.
• Reputational risk from inadequate climate-related efforts.
• Costs of compliance with climate-related laws and client-driven policies.

Mitigation Strategies

• Incorporating short-term and long-term physical risks into business continuity planning.
• Considering energy-efficient office space in new buildouts.
• Proactive review of climate impacts of prospective clients in oil, energy, and utility sectors.
• Implementing environmental best practices in direct operations.
• Engaging in multi-stakeholder initiatives.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• ESG considerations in procurement process
• Preferred Vendor list

Climate-Related Risks & Opportunities

Physical Risks

• Sea level rise
• Temperature variability

Transition Risks

• Regulatory changes
• Market shifts
• Client and investor demands

Opportunities

• Development of new products/services
• Shift in consumer preferences
• Move to more energy/resource efficient buildings

Reporting Standards

Frameworks Used: TCFD, GRI, UNGC

Certifications: Null

Third-party Assurance: PwC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Action
• Human Capital
• Diversity, Equity and Inclusion
• Responsible Media and Content
• Data Ethics and Privacy

Environmental Achievements

• 12.5% reduction in data center power consumption in 2023 (lowest in 14 years)
• 30% of company electricity from renewable sources as of December 2023
• All new tenant buildouts LEED-certified or better since 2016
• Validated emission reduction targets aligned with 1.5°C warming limit through SBTi
• Commitment to 100% renewable electricity by 2030
• Net-zero carbon commitment by 2040 (The Climate Pledge)

Social Achievements

• First in industry to tie CEO compensation to DEI goals (2006)
• First advertising holding company to release race and gender workforce composition
• Equity Upfront™ event to support minority-owned media companies
• Adoption of UN Women’s Empowerment Principles
• BELONG survey to assess employee perceptions of DEI initiatives
• Various wellness, safety, and career development programs for employees
• WELL Health-Safety rating in 47 locations

Governance Achievements

• Board Diversity Policy formalizing commitment to gender and ethnic inclusivity
• Anti-Corruption Policy
• Anti-Harassment and Equal Opportunity Policy
• First U.S.-based advertising holding company to receive limited external assurance on ESG data
• Expanded assurance on ESG report to include Scope 3 Category 6 - business travel

Climate Goals & Targets

Environmental Challenges

• Supplier ESG program maturity
• Reducing carbon emissions from business travel

Mitigation Strategies

• Supplier engagement program to assess ESG maturity (16% participation in 2023, aiming for 15% increase in 2024)
• Updated travel policies encouraging sustainable travel options

Supply Chain Management

Supplier Audits: 16% of significant suppliers in 2023

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP, GRI, SASB, TCFD