Climate Change Data

Environmental Metrics

ESG Focus Areas

• Workforce Diversity
• Inclusive Culture
• Operations
• Marketplace
• Community
• Climate Change
• Socially Responsible Procurement
• Transparency, Integrity and Ethics

Environmental Achievements

• London headquarters now runs on 100% renewable energy
• Achieved verified zero waste to landfill and a reported 98% recycling rate
• Reduced water consumption by 1.5 million litres per year

Social Achievements

• Increased female employees in UK workforce to 55% (from 49% in 2019)
• Increased BAME employees in UK workforce to 21% (from 19% in 2019)
• Launched Open House, an 8-week online training program for 1,500 trainees
• Established Mentor Black Business program, supporting over 500 black-owned SMEs

Governance Achievements

• Substantial progress in governance to comply with the UK Corporate Governance Code 2018
• Appointed five new Non-Executive Directors, increasing Board diversity
• Commissioned an external review of Board effectiveness

Climate Goals & Targets

Environmental Challenges

• Loss of clients due to negative economic conditions, funding issues, and increased competition
• Loss of key employees and inadequate employee skills
• Inadequate internal controls and lack of central control
• Reputational risk due to public scrutiny
• Regulatory and legal changes
• Litigation risk
• Geographic risks (e.g., border restrictions, political instability)
• Covid-19 pandemic impact on revenue and operations

Mitigation Strategies

• Cost-cutting, restructuring, and disposals of loss-making companies
• Focus on employee development, engagement, and welfare
• Reorganisation of the Group finance function, implementation of new financial systems and policies
• Strengthening corporate governance, improving whistleblowing systems
• Continuous monitoring of regulatory and legislative changes
• Investment in technology to support remote working and business continuity
• Detailed reviews of pandemic impact on risks

Supply Chain Management

Responsible Procurement

• Sustainable sourcing is a key consideration

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes in supply chain and property management

Opportunities

• Addressing climate-related matters to meet client expectations and secure brand reputation

Reporting Standards

Frameworks Used: UK Corporate Governance Code 2018

Certifications: ISO 14001

Awards & Recognition

• Street Store named finalist in Fast Company’s World Changing Ideas 2020 awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion

Environmental Achievements

• Launched network-wide sustainability transformation programme ACTION @M&CSAATCHI
• Measured emissions across global operations
• Purchasing renewable electricity in London
• Measured scope 3 emissions
• Year on year reduction of UK emissions
• Trained UK teams on AdGreen carbon calculator
• Developed Action Production Guidelines for M&C Saatchi London productions
• Joined Ad Net Zero Steering Committee

Social Achievements

• Launched M&C Saatchi Open House, reaching over 2,500 people worldwide
• Established Employee Led Networks to develop inclusive experience
• Undertook Diversity Benchmarking Survey in the UK
• Implemented mandatory inclusive leadership training for UK CEOs
• Launched UK internal talent initiative ‘Connected Talent’
• Mandated balanced shortlists for senior vacancies
• Launched partnership with Vault app for confidential disclosures
• Established DE&I leaders in UK companies
• Supported Mentor Black Business to help black-owned businesses

Governance Achievements

• Established a new sustainability leadership team
• Introduced a new governance structure and network of task forces
• Created a Group Sustainability Sub-Committee
• Linked sustainability performance to executive remuneration (10% of bonus)

Climate Goals & Targets

Environmental Challenges

• Under-representation in recruitment, development, and reward of people
• High Scope 3 emissions (90% of total emissions)
• Need to reduce carbon footprint across value chain
• Lack of diversity and inclusion in the communications sector

Mitigation Strategies

• Developed near-term science-based targets with SBTi
• Partnering with suppliers to reduce emissions
• Implementing energy efficiency and behaviour change programmes
• Developing a global travel policy
• Developing a transparent and innovative offsetting strategy
• Investing in climate literacy training for employees
• Developing a methodology to measure planet-positive campaign revenue
• Developing a client questionnaire on environmental approach
• Implementing a 3-Step-Checklist for new business
• Reviewing end-to-end recruitment process with a focus on DEI
• Conducting equal pay audit
• Global roll-out of Vault app
• Developing a global code of conduct

Supply Chain Management

Responsible Procurement

• Partnering with suppliers to reduce emissions

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SBTi

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity & Inclusion (DE&I)
• Supply Chain Sustainability

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 35% from 2019 baseline (market-based)
• Implemented a portfolio approach to offsetting 2022 Scope 1 and 2 emissions, including purchasing SAF certificates and investing in a solar power project with biodiversity benefits.

Social Achievements

• Launched a global employee engagement survey with 76% participation.
• Launched new family-friendly policies in the UK, including enhanced paid family leave and support for fertility treatment.
• Launched M&C Saatchi Open House, a free online training program to increase diversity in the industry.

Governance Achievements

• Restructured the Executive Leadership Team.
• Improved banking facilities with a new revolving credit facility.

Climate Goals & Targets

Environmental Challenges

• Challenging market environment, particularly in the technology sector.
• Client hesitancy to commit to new projects.
• Increased air travel emissions despite new policy.
• Uneven take-up of ESG tools across businesses.

Mitigation Strategies

• Accelerated global efficiency program, delivering £3.9m in annualised cost savings.
• Exited loss-making businesses.
• Implemented a new operating model.
• Increased purchase of SAF certificates and developed an internal carbon price strategy.
• Developed a new process for reviewing potential clients' ESG impact.

Supply Chain Management

Supplier Audits: 250 suppliers surveyed in 2023 to test ESG data management system.

Responsible Procurement

• Developed a new global Supplier Code of Conduct.
• Built ESG requirements into RFPs with strategic suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, hurricanes, wildfires, extreme heat
• Impacts on workforce productivity and client base

Transition Risks

• Regulatory changes (e.g., UK Government's net-zero commitments)
• Increased scrutiny of work with fossil fuel clients
• Greenwashing concerns

Opportunities

• Energy efficiency initiatives
• Renewable energy installations
• Growing demand for climate-related services from clients

Reporting Standards

Frameworks Used: GRI, TCFD, SASB

Certifications: ISO 22301 (UK entities)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through emissions reductions, renewable energy, sustainable supply chain practices, and planet-positive campaigns.

Awards & Recognition

• Numerous awards for various campaigns and agencies.