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ADLAND Carbon Neutral Business Proposal
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ADLAND Carbon Neutral Business Proposal


A proposal for an advertising agency to consider how to differentiate itself in the market, set a standard in environmental awareness and conservation.

A proposal for an advertising agency to consider how to differentiate itself in the market, set a standard in environmental awareness and conservation.

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  • 2. Business Sustainability 2 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 3
  • 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 4
  • 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 1 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.” 1 http://www.subaru-earth.com/ 5
  • 6. Business Sustainability 6 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. 7