Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Actively track CO2 emissions and perform better than average compared to a sample of other companies.
• Committed to achieve zero greenhouse gas emissions by 2024

Social Achievements

• Averaged a 1.01 female-to-male ratio in its Content Practice and 0.80 in its Data, Analytics & Programmatic Practice.
• Donated to 28 charities.
• Delivered 20 Projects for Good related to the UN Sustainable Development Goals.
• Launched S4 Impact Day globally, a volunteering day for all employees.

Governance Achievements

• Significantly enhanced the Board with the addition of four new Directors, three of whom are female.

Climate Goals & Targets

Environmental Challenges

• Limited impact on revenue and gross profit due to COVID-19, with Content Practice less affected than Data, Analytics & Programmatic Practice.
• Some tech clients showing signs of postponing spending to the second half of 2020.
• FMCG, CPG, pharma, and retail clients cutting budgets, but shifting money to digital.
• Clients seeking to extend payment terms.

Mitigation Strategies

• Coronavirus Crisis Group (CCG) meeting daily to assess impact and actions.
• Focus on controlling hiring and eliminating non-essential costs.
• CCG agreed to reduce salaries from April 1, 2020, and no cash bonuses for 2019.
• Closely monitoring receivables.
• Running cash-flow scenarios gaming substantial falls in revenue.

Supply Chain Management

Responsible Procurement

• MediaMonks tracks CSR policies of largest suppliers to assess sustainability levels.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNGC (MediaMonks since 2012)

Certifications: ISO 14001 (Park Communications)

Awards & Recognition

• MightyHive named one of Built in NYC’s Best Midsize Companies to Work For in 2019.
• Firewood recognised as one of the top workplaces in advertising, marketing, media and ad tech by the AdAge Best Place to Work 2020 survey.

Environmental Metrics

ESG Focus Areas

• Sustainable Production
• Zero Impact Workspaces
• Diversity, Equity and Inclusion (DE&I)

Environmental Achievements

• Set a goal to become a Certified B Corporation.
• Commitment to achieve carbon neutrality by 2024.
• 39% of electricity is renewable
• 31% of waste separated (total 153.2 tonnes)
• Emissions per FTE (Full Time Employee) 1.24 tonnes CO2

Social Achievements

• Unique Black-orientated fellowship and female executive leadership programmes.
• Changed hiring practices and education programmes.
• Donated £356,568 (0.12% of net revenue) to over 40 organisations and foundations.
• Offered 77 internships
• 26% trained on diversity, equity and inclusion
• 2.66% absenteeism (MediaMonks only)

Governance Achievements

• Established new, and continue to seek to improve existing, corporate governance structures.

Climate Goals & Targets

Environmental Challenges

• Relatively large carbon footprint as an internationally expanding company.
• Limited data availability for emissions reporting in the first year for most S4Capital companies (except MediaMonks).
• Many employees working from home due to COVID-19, impacting data accuracy.
• General imbalance across the digital world in terms of gender diversity.

Mitigation Strategies

• Aligned carbon footprint with the Greenhouse Gas Protocol.
• Included external servers in scope 3 emissions.
• Aim to broaden the scope of carbon footprint to include all greenhouse gas emissions in the supply chain.
• Tree-Nation will plant enough trees to capture employees' average annual emissions.
• Signing Amazon’s Climate Pledge.
• Developing a Sustainable Production Manifesto.
• Setting up the S4Capital Fellowship Program.
• Establishing WoMMen in Tech and a Women in Leadership programme.
• Partnering with organisations to create opportunities for under-represented groups.

Supply Chain Management

Supplier Audits: Over 80% of procurement budget spent on suppliers with publicly disclosed CSR policies.

Responsible Procurement

• Aligning procurement with sustainability standards.
• Engaging with suppliers on sustainability.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

UN Sustainable Development Goals

• SDG 4.4
• SDG 9.4
• SDG 9.5
• SDG 12.2
• SDG 3
• SDG 5
• SDG 9
• SDG 10
• SDG 12
• SDG 13
• SDG 5.5
• SDG 8.5
• SDG 10.3
• SDG 7

The report details how various initiatives contribute to these goals through sustainable production, zero impact workspaces, and diversity, equity, and inclusion efforts.

Awards & Recognition

• Firewood ranked number 13 on AdAge’s Best Places to Work 2020 list.
• MightyHive received the Great Place to Work certification for 2019-2020.

Environmental Metrics

ESG Focus Areas

• Zero Impact Workspaces
• Sustainable Work
• Diversity, Equity and Inclusion (DE&I)

Environmental Achievements

• Achieved carbon neutrality by 2021 by offsetting 2020 emissions; planted over 265,000 trees in 2021; committed to Amazon Climate Pledge; aiming for B Corp certification by 2023.

Social Achievements

• Strengthened hiring and educational policies for diversity, equity, and inclusion; improved gender diversity ratio to 43% women globally; launched second edition of S4Women Leadership Programme; hired second-year flight of Fellows from historically black colleges and universities; appointed a global Chief Diversity Officer; donated 1,460 hours to community and charity services; increased Projects for Good from 41 to 251.

Governance Achievements

• Committed to good corporate governance and principles of the UK Corporate Governance Code; Audit and Risk Committee and Nomination and Remuneration Committee comprised entirely of independent Non-Executive Directors; continued to enhance Board diversity.

Climate Goals & Targets

Environmental Challenges

• Delay in producing 2021 results due to issues with financial control, risk, and governance; impact of events in Ukraine; significant investment required to manage growth; integrating combined businesses; maintaining reputation; managing risks associated with third-party dependencies; adapting to the 'death of the cookie'; highly competitive industry; evolving data protection and privacy laws; cybersecurity risks; managing foreign exchange risk; complying with anti-corruption legislation; managing tax regulations and sanctions; maintaining adequate internal controls and governance arrangements.

Mitigation Strategies

• Implementing significant changes in financial control, risk, and governance structure and resources; adapting to changes in the digital landscape and finding opportunities; focusing on purely digital, end-to-end marketing services; building durable client relationships; safeguarding reputational risk; developing guidelines for compliance with data privacy laws; implementing security measures to prevent cyberattacks; developing a strict anti-bribery and corruption policy; taking external professional advice on tax and group structuring; developing internal control function and securing internal audit provision; moving with the market and developing long-term solutions to the 'death of the cookie'; aligning digital media and audience strategy with 'Walled Gardens'; investing in modeled measurement and attribution; helping marketers build first-party data assets; strengthening the finance team; improving control environment; appointing a new Group Financial Controller, a new CFO for the Content practice, a new Global Finance Transformation lead, a new Group Treasurer and a new Global Compliance lead; developing its internal control function and securing internal audit provision; adopting the UK Corporate Governance Code in FY2023.

Supply Chain Management

Supplier Audits: Top 20 suppliers publicly disclose a CSR/ESG policy

Responsible Procurement

• Aligning procurement with sustainability standards; engaging with suppliers on sustainability

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), World Economic Forum's Stakeholder Capitalism Metrics Initiative (SCMI)

Certifications:

UN Sustainable Development Goals

• SDG 4.4
• SDG 9.4
• SDG 9.5
• SDG 12.2
• SDG 1, 4, 5, 10, 12, 13

Initiatives contribute to SDGs through zero carbon commitments, diversity and inclusion programs, sustainable work practices, and Projects for Good.

Environmental Metrics

ESG Focus Areas

• People Fulfilment
• Our Responsibility to the World
• One Brand

Environmental Achievements

• 20% year-over-year reduction in absolute emissions
• 78% decrease in natural gas emissions
• Over 68% reduction in emissions from Capital goods, Waste and Employee commuting

Social Achievements

• Launched Media.Monks Coaching Certification Program
• Launched Accelerate.Monks, a global training program reaching over 1,000 participants
• Ran the 3rd S4 Women in Leadership program at Berkeley University
• Recruited three S4 Fellows
• Increased BIPOC representation from 37% to 38% in the US
• Donated 1,449 hours for community and charity services
• Increased For Good projects from 445 to 502

Governance Achievements

• Implemented ESG software to improve data quality and analysis
• Improved ESG reporting, resulting in a CDP score upgrade from B- to B
• Implemented ESG policies and enhanced governance and procedures
• Established a new Enterprise Risk Management (ERMF) Framework

Climate Goals & Targets

Environmental Challenges

• Slower market growth and continuing macroeconomic uncertainty
• Client caution and longer sales cycles
• Lower regional and local opportunities
• Difficulty converting new business opportunities
• Challenging year for Content practice, impacting margins significantly
• Modest like-for-like net revenue decline in Data&Digital Media
• Slight decline in Technology Services in the second half due to phasing and reduced work with some larger clients

Mitigation Strategies

• Disciplined approach to costs, headcount, and operational cash generation
• Significant cost reductions
• Changes to the leadership structure of the Content practice
• Corrective action on costs in Data&Digital Media
• Focus on improving the operating model, integration, and forecasting in Content

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global Code of Conduct for suppliers
• Sustainable Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Carbon pricing
• Reputational risks
• Regulatory risk and reporting requirements

Opportunities

• Efficiencies through decarbonisation programme
• Development and/or expansion of low emission goods and services
• Access to new markets

Reporting Standards

Frameworks Used: TCFD, SBTi

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Monks.Flow (AI-centric professional managed service)
• Software-defined production for broadcast

Awards & Recognition

• Adweek’s inaugural AI Agency of the Year
• Sustainability in Leadership award at the NAB Show