A proposal for an advertising agency to consider how to differentiate itself in the market, set a standard in environmental awareness and conservation.
2. Business Sustainability
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Introduction
We work in an industry that is built upon commercial consumption. While we cannot change the nature of
advertising and the role we play within it, we must take in to account the changes that are happening around us,
including a consumer trend of „sustainable consumption‟, clients moving towards minimizing environmental impact
and national governments implementing significant policy changes such as putting a price on carbon.
I feel there‟s a need for businesses to play a leadership role in fostering more sustainable levels and patterns of
consumption, through current business processes such as innovation, marketing and communications, and by
working in partnership with employees, clients and partners to define and achieve more sustainable lifestyles.
Sustainable advertising addresses the carbon footprint and other negative environmental and social impacts
associated with the production and distribution of advertising materials. A growing number of companies are
making a commitment to the reduction of their environmental impact associated with advertising production and
distribution. There is also a wide range of environmentally friendly advertising options available to brands,
including clean advertising as offered by a range of service.
What is carbon neutral?
The term 'carbon neutral' is a net balance of zero carbon emissions and other significant greenhouse gases
resulting from an organisation's operations.
CO2-e emissions + CO2-e reductions = zero emissions
Simply put becoming carbon neutral implies having zero carbon impact on the environment due to an
organisations' activities. For an organisation to become carbon neutral it must first establish its carbon footprint
and then reduce its greenhouse gas emissions as far as possible. Any residual emissions are then neutralised by
the acquisition of offsets.
Why become carbon neutral?
Strengthen agency reputation and market positioning in terms of brand, products and services
Provide an opportunity for agency to understand their current position in preparation for anticipated
emissions trading and greenhouse emissions reporting requirements. e.g. Carbon Disclosure Project
Manage stakeholder expectations (e.g. meet expectations of clients)
Emission reductions often generate cost savings from improved operational efficiencies and reduced
consumption
Improve employee attraction and retention - to become an employer of choice
Identify investment or product development opportunities
3. Business Sustainability
Manage climate change risks (eg, reduce exposure to anticipate „carbon price' signals)
Increase level of understanding of where the opportunities are in operations and value chain to reduce
costs and increase revenue
Actions that increase emissions
Actions that decrease emissions
Building Energy Use
Behavioral changes and renewable energy sources
Car Transport
Implementing energy efficiency measures
Air Travel
Purchasing Green Power, Offsets
Waste
Offsetting remaining emissions
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4. Business Sustainability
Process
1. Build Internal Awareness
Develop awareness and understanding of the significance of greenhouse gas emissions associated with
company operations and activities.
Host internal workshop inviting staff to contribute and take a stake hold in the initiative
Obtain senior management support and commitment
2. Determine Emissions Footprint
Prepare an appropriate emissions „inventory‟ or identify and fill any gaps in existing inventories
Ensure consistency with other greenhouse gas reporting requirements
Consider verification of baseline data
3. Establish Business Case
Clearly define business case for becoming carbon neutral
Develop and integrate a carbon neutral strategy into core business strategy and objectives
4. Reduce Emissions Footprint
Set reduction goals and targets based on the strategy
Develop action plans and programs for implementation
Identify opportunities to reduce emissions embedded in our operations, products and services
5. Offset Residual Emissions
Investigate the offset market to obtain appropriate and quality offsets
Implement offset opportunity to clients as part of services rendered
6. Communications
Develop a communication strategy for key clients, stakeholders and industry
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5. Business Sustainability
Clients & sustainability
Nike
“Creating Sustainable Models for Consumption and Growth. Nike's commitment is to create extraordinary
performance products for athletes while managing our business within nature's limits. We anticipate a future that
seeks out and rewards new models of consumption and growth, separated from material consumption. It's a
transition from build, buy and bury - the common business model today - to a future of sustainable business
models for consumption and growth.”
Subaru
“The Subaru member companies, consisting of Fuji Heavy Industries, Inc. subsidiaries located in North America,
are committed corporate citizens dedicated to protecting the earth’s natural resources, our community’s
environment, and human health. This commitment extends further than just meeting the stated environmental
laws and regulations; it encompasses the integration of sound environmental practices in all of our business
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activities and decisions.”
Colonial First State
“Colonial First State aspires to be a sustainable company, from the way we invest, to the way we communicate
with our customers through our working practices and environmental impact. At Colonial First State sustainability
is more than just a practice it’s a part of our company culture and we are dedicated to maintaining and increasing
our commitment to these practices in the future.”
Luxbet, Tabcorp
“Tabcorp is committed to the long term sustainability of its operations and aims to optimise the social,
environmental, workplace and economic impact of its operations for the benefit of all stakeholders.”
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http://www.subaru-earth.com/
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6. Business Sustainability
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Industry Examples
Australia‟s biggest publisher News Ltd has announced that the company has become carbon neutral. The
company said that it reduced its emissions by 18.4% in the 2010 financial year and that it believed that an audit
would demonstrate that it had got that number to 20% by the end of last month.
It said that its carbon emissions had dropped from 146,000 tonnes of carbon dioxide to 135,000 tonnes. It also
achieved10% of the reduction by the purchase of renewable energy certificates which are issued against the
purchase of renewable power – in News Ltd‟s case, via wind farms in turkey.
News Ltd CEO John Hartigan said: “We have cut almost 30% of vehicle fleet emissions, business travel is down
by 22% through the use of video conferencing and we have invested in more energy-efficient equipment to
reduce emissions from lighting, cooling and printing.
“Staff efforts to recycle more, power-down their computers at the end of the day and turn off the lights have all
contributed to reducing our carbon footprint…”
Out of Home media
Australia‟s leading provider of Out-Of-Home Digital media, PDM, has announced they will now offer carbon
neutral advertising to their clients. PDM is the first Australian Out-of-Home Digital media company to provide
advertisers with a choice to purchase fully carbon offset advertising as part of their environmental responsibility.
Government
The NSW Government is committed to becoming carbon neutral by 2020, with the operations of the NSW Cabinet
becoming carbon neutral from mid-2009.
7. Business Sustainability
Office Initiatives
Energy reduction
Motion-sensor lighting in the meeting rooms & bathrooms
Reduction in the number of hours each day office lights are switched on
Placement of timers on electrical equipment to reduce usage
Paper and materials reduction
Client communications encouraging thousands of customers to ditch paper-based communications in
favor of electronic ones, saving reams of paper and costs
Printing fewer documents and using more double sided printing
Paper recycling bins at every desk
More energy efficient printers installed
Installing waterless urinals and dual-flush toilets to save water.
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