America’s Premier Multi-Channel MarketerContinuing Our Commitment to Sustainability & Corporate Responsibility ANNUAL STATUS REPORT 2011
A DedicatedLeaderAt Publishers Clearing House we are committed to operating our business in a manner that conveysour dedication and commitment to social, ethical and environmental responsibility. We continue toconduct our operations consistently with criteria established by the Direct Marketing Association.As a leader in the direct marketing field we strive to set a standard in our business practices thatothers may be inspired to follow.Paper Procurement allows customers to view their order history online was upgraded. The enhanced functionality features include: combining paymentsand Use of several orders into a single payment, which saves on transaction costs, order status tracking, confirmation e-mails, andPaper procurement is at the forefront of our marketing campaign opt-in or out.sustainability efforts and we endeavor to source anduse only certified paper in mail promotions and our Energypackaging, to reduce our consumption, and to seekpaperless alternatives whenever possible. ConservationCertifications - Paper used in our promotional mailings and In 2010 our sustainability efforts focused on reductionbilling programs is sourced from suppliers certified by the FSC in power usage through lighting efficiencies in all ofand/or the SFI – the two organizations whose evaluations are our facilities, automated HVAC control systems,most appropriate for our operations. These certifications ensure upgrades to our IT system, printers and monitors.that our vendors are actively sourcing fiber and paper thatare 100% chain-of-custody certified in accordance with Port Washington - A lighting replacement upgrade in our 101environmentally responsible practices. As the available quantity of Port Washington location is currently saving over $5,000 percertified content expands, our suppliers are correspondingly month from the building’s energy usage profile since the start ofincreasing the amount of certified content we are able to use in the project. The reduced consumption is delivering an estimatedour printed promotional materials. carbon emission reduction of 26 tons per month. Our building at 382 will reach its ROI at an estimated 9 months, 2 months For packing and shipping we have maintained our commitment ahead of schedule and will save over $6,000 per month fromto use corrugated cardboard that is either SFI certified or the buildings energy usage profile. This is a carbon emissionmanufactured from 100% recycled materials. reduction of 27 tons per month.Reduced Office Paper Consumption - In 2010 we posted Syosset - Installation of automated controls for heating,a goal of reducing office paper consumption by 10% by limiting ventilating and air conditioning (HVAC) systems at our 6901usage of copiers, duplex printing, and maintaining electronic files Syosset building allows for more efficient control of our roof -instead of paper files whenever practical. This goal was achieved top units, significantly reducing the running time of thisand confirmed by year-to-year centralized office paper order data energy intensive equipment, which had fans on a 24/7statistics. operating cycle. With the new system, individual thermostats and temperature sensors provide readings that give us Among the most noteworthy accomplishments was a reduction scheduling options and allow us to maximize operatingin mainframe print reports resulting in 286 fewer boxes of efficiencies.computer paper per year – an annual savings of $10,000. Mainframe Improvements – Office EquipmentInternet Alternatives and Bar Code Benefits - Since May Upgrades - Business transactions are now being processed2010, when we implemented a new E-Bill Reminder, we have on a new mainframe unit that reduces power consumption byreduced the number of bills sent to those who opt to pay online 10% over the previous model and provides significantby approximately 400,000. Annually we anticipate this process performance gains that allows for lower overall costs per trans-will reduce our mailed bill volume by 600,000. action. Currently, we estimate our use of confirm bar code has resulted With a target of reduced energy consumption and cost, inin 37,000 fewer bills sent annually. In 2011, PCH will be 2010 PCH continued the update of our office equipment withimplementing the USPS Intelligent Mail Bar Code (IMB). Our new Canon multi-function print devices that print, scan, andplans are to incorporate this Confirm logic technology for our copy using a fraction of the resources that the old modelsCredit and Collections program further reducing the number used. In addition, all office and cubicle PCs utilize LCDof mailed invoices and bills. monitors which are more user-friendly and consume up to 75% less electricity than the CRT computer displays they replaced. For 2010 My Account, a paper-free internet interface which
Corporate FreightRecycling ConsolidationRecycling of everyday waste is an ongoing and PCH employs transportation policies and practicesever-growing effort at all of our buildings and leased guided by objectives to reduce vehicular emissions,office space. decrease traffic congestion and improve air quality.Office Buildings - At our corporate offices in 2010 wecollected over 75 tons of paper and cardboard for recycling thatotherwise would have been sent to landfills. Our recycling andwaste management initiatives also include glass, metal, plastics,batteries and fluorescent light bulbs.Mail Processing - In the past year at our Syosset mailprocessing facility, over 950 tons of reply mail and other In support of this principle, we look for opportunitiescustomer correspondence was shredded and redirected from to shift volumes to rail and sea transport, considerlandfills to recycling centers. geographic location when selecting interactingE-Waste Disposal - We maintain full compliance with our suppliers, and plan for maximum efficiency whenmunicipal recycling programs including the responsible disposal our products are drop-shipped to our customers.of unusable electronic equipment. Our e-waste vendor is Domestic Freight - Our freight vendors include leaders incertified for the environmentally safe disposal of computer the field of reduced energy transport. They make extensive useequipment. During 2010 more than 25 pallets of computers, of alternative fuel vehicles and hybrid delivery trucks andmonitors and printers were sent to recycling facilities for dispos- promote a wide array of strategies that help reduce theal or repurposing. environmental impact of distributing and shipping products. These strategies include load and mode optimization, which reduces mileage and container optimization, which maximizes shipping efficiencies. We were also able to optimize annual freight consolidation with respect to inbound paper-based component freight, outbound product packages and outbound mail. Our outbound parcel shipments are consolidated and bed-loaded on 53 trailers for maximum utilization and hauled to 20 FedEx hubs throughout the country. Additional freight from other shippers are added to these trailers for drop off at nearby USPS facilities; again maximizing efficiencies while conservingWarehouse Facility - Our product warehouse vendor, FDC, energy and reducing transport mileage.oversees a recycling program for all of PCH’s corrugatedpackaging material. The amount of corrugated paper processed International Shipments - In conjunction with UPS-Supplythrough FDC averages 20,000 pounds per week. FDC also Chain Services we continually optimize overseas freightoversees a recycling program for all of PCH’s non- consolidation and maximize the usage of larger containers for allcorrugated paper products and shrink-wrap that are recycled in imported freight shipments. Containers arrive in either Seattle ora manner that meets all accepted environmentally responsible Vancouver and are then shipped by rail to Minneapolis. Sincestandards. All aluminum waste is sent out for recycling. Wooden 98% of our containers are full container loads (FCL), and ourpallets are refurbished with some being returned to us for future ground transportation emanates from Minneapolis rather thanuse and the balance being retained by the repairer Chicago, we’re saving over 300 miles per container in groundas compensation. Used batteries are returned to the supplier transportation.for appropriate EPA-approved disposal. We segregatechemical related return product and fluorescent lights (mercury)and contract with waste management vendors for EPAapproved disposal.
Direct Marketing Association– Industry Advocate The DMA’s sustainability List hygiene practices used: mission includes the • A notice in mail solicitations about how individuals can stop or establishment of best modify future mailings practices guidelines • Use of in-house do-not-market lists and prompt action for environmental and on requests from consumers who choose not to receive social responsibility, our mailings recycling, list hygiene, • Use the USPS Mail Preference Service monthly report to and mailing list opt-out remove consumer prospects from mailing lists.options. Our commitment to these principles includesparticipation in the following initiatives: • Improve relevancy by effectively applying data analysis tools, such as predictive models and/or recency-frequency-monetary“Recycle Please” a nationwide public education program that segmentation, prior to mailing to identify and suppress likelyasks DMA members to prominently display the “Recycle non-responders.Please” logo on their catalogs and direct mail pieces for the • Maintain accurate, “clean” mailing lists by using USPS orpurpose of encouraging consumers to recycle them after commercially equivalent files for ZIP Code correction, addressreading. standardization, change of address, address elementThe “Green 15” Pledge - marketers and suppliers attest that correction, vacant address identification, delivery sequencetheir organizations are taking certain steps throughout the end-to- file and/or address correction requested, etc.end direct marketing process to improve their environmental foot- • Intelligent Mail Bar Code (“IMB”) for more accurate andprint and “triple bottom-line” performance (people, planet, profit). efficient mail delivery Green Initiatives Green Data Center - An ambitious vision for greater efficiency highlights Data Center green In 2010 the PCH Green goals for 2011. Among the projects are: Team launched an Office • Development of a monitoring system to analyze and track Paper Reduction Initiative resource usage with a goal of reducing PRINTOU TS! TURN OFF LIGHTS! r office or FEWER paper use by 10%. This If you’re reports receivin you don ’t really e remove e your nam ribution. d of g copies d, nee • Design a system that can change resource consumption leave you e hav When you last one to leav if you’re a confere the nce room the lights. benchmark was achieved , turn off from dist on demand and for 2011 additional • Replace legacy systems with more energy efficient systems BOTH SID measures will be explored ES! USE YOU R OWN CUP OR MUG! or mug • Deploy new applications to high efficiency blade servers to COPY ON r own cup possible, Whenever of paper for both side copying . s to further reduce paper use Bring you ead of using to work styrofoa inst m or pap er cups. increase computational density while lowering overall use. The Green Team also Following these few resource consumption introduced the 5-Step Go simple guidelines will cut company waste, save on energy and paper costs, and help in our efforts to reduce our carbon footprint. And when you Green At Work guidelines At Work you’ll also be doing your maintain PCH’s commitment to be Go Green part to an • Virtualized systems to save money on new hardware recycle! purchases while improving system performance, operational citizen ptacles environmentally responsible corporate cling rece at a company Lunch & friend Use recy out and enhance our standing as a trusted through provided g. of local environmental associations. the buildin Learn and plans to efficiency, and decreasing energy consumption increase awareness of • Analyze system driven print jobs to look for opportunities these easy-to-follow energy and resource savings for additional reductions tips in 2011. • Incorporate print management functionality that includes Keeping Current and Staying Informed - In 2010 we duplexing and more efficient multi-function print devices invited R.R. Donnelly, Canon U.S.A. and Verizon Business to • Continuation and expansion of our process of safe disposal of our company headquarters where they presented detailed e-waste from our offices accounts of their sustainability initiatives and programs. These sessions were enlightening and informative and Automated Electronic Routing of Graphics Files - confirmed that we have chosen to partner with companies A new digital asset management process in who share our commitment to environmentally responsible combination with our in-house network interface will business practices. give us yet another way to reduce paper use in 2011.
SharingA GoalOur suppliers’ efforts include a commitment to partner with vendors who share our goal of conductingbusiness in an environmentally responsible and sustainable manner and to reduce and control energyuse, carbon emissions and water waste.Canon U.S.A. - Office Printers Verizon Business - Communication SystemsCanon’s commitment and contribution to the Verizon Business provides the technology, supportpreservation of the environment and to the world and networking needs for our communicationcommunity are an integral part of their management systems. With a global presence that includes morestructure, product design, manufacturing, and than 200,000 employees and over 27,000 buildings,corporate culture. This commitment has inspired Verizon utilizes and promotes sustainable businessmany special corporate programs at both global and practices that reflect their commitment to theregional levels and we are proud to partner with economic, environmental, and social responsibilitiesCanon as the exclusive supplier of our office they have to their customers, shareholders,printers. Canon has undertaken several initiatives to employees and the general public. Their actions andreduce the environmental impact of operations and accomplishments include:the products produced including: The 2009 appointment of a Chief Sustainability Officer.Canon’s new imageRUNNER multi-function devices used atPCH use significantly less electricity, allow for default duplex Expanded use of alternative fuel vehicles in their fleet of moreprinting, have reduced CO2 emissions, and utilize recycled than 42,000 trucks.plastics from retired equipment. Elimination of over 27,000,000 paper bills by convertingBio-plastic development – these plant and mineral-based 2,500,000 customers to electronic billing statements.plastics incorporate limerock substances into product packaging Installation of one of the nation’s largest fuel cell sites in theirand parts. Garden City office is used to create clean energy for multipleZero landfill waste goal – Canon has created a collection/ facilities.recycling program for Canon Inkjet and Toner cartridges. To datethey have collected more than 190,000 tons of cartridges from Development of the first cell phone to be certified carbon free.around the world. Constructed from recycled content and corn-based plastics this phone also runs applications that help promote green activities.The Clean Earth Crew – comprised of Canon U.S.A.employees who volunteer their time in communities nationwide 2010 recycling initiatives that encompassed more than 30for conservation activities involving parks, beaches and nature events and included over 4,000 employees who collected overpreserves. Locally, the Clean Earth Crew has contributed to 170,000 pounds of recyclable material and 500 boxes of excesscleanup efforts at: office supplies that were donated to charities.• Sands Point Preserve • Vanderbilt Museum • Robert MosesState Park • Jones Beach State Park • Riverhead Foundation forMarine Research and Preservation • Alley Pond EnvironmentalCenter • Cold Spring Harbor Fish Hatchery & AquariumPrint management software that reduces paper consumptionand associated print costs. This software can increaseefficiency, save resources, and lower costs by defaulting to twosided printouts, automatically selecting the most cost-effectiveprinter and defaulting to black and white.
Customer Privacy and Consumer ProtectionIn the mail and online we continue our commitment to best practices for privacy and ethicalbusiness behavior. Publishers Clearing House is a member of the Online Trust Association (OTA) whose mission is to create andpromote business practices and technologies to enhance online trust and the vitality of e-commerce and onlineservices. Formed in 2004, the OTA is a global non-profit organization representing the Internet ecosystem,supporting user choice and controls, protection of critical infrastructure, privacy and data governance, promoting mar-keting best practices and self-governance. In 2010, PCH along with Cisco, Microsoft, Symantec, VeriSign and oth-ers, was among the companies recognized for their leadership and contributions to the trust ecosystem. Transparency and a positive user experience are at the forefront of our internet operations. PCH is proactivelyexploring advertising strategies that make advertising opt-out options readily accessible for all online consumers. Tosuch end we recently launched a custom Advertising Option logo that offers a simple and transparent way to choosenot to have online activity tracked for the purpose of serving ads and content. In 2010 the FTC invited PCH to become one of a small group of private companies (along with Xerox and AmericanExpress) to contribute to their Consumer Sentinel Fraud database. The database, maintained by the FTC, is thecentral repository and source of complaint investigation for the majority of law enforcement offices across the U.S.and Canada. Contributors include most state consumer protection offices, the FBI, the Department of Justice andregional Better Business Bureaus. This database will help law enforcement target scammers who illegally use ourname. The “halo” effect of partnering with the FTC in their law enforcement efforts should also prove to have apositive benefit with the consumer protection community and the media.A Tradition of Charitable Giving The philanthropic spirit of the company’s founders, Harold and LuEsther Mertz lives on. The philanthropic spirit of the company’s founders, Harold and LuEsther Mertz (both deceased), lives on with nearly half of the companys profits going to charitable causes ranging from the arts to social services to the environment, largely through charitable trusts established by company founders and their families. The New York Botanical Garden, Lincoln Center for the Performing Arts, the National Audubon Society and the Alzheimers Disease and Related Disorders Association are just a few of the majorbeneficiaries of PCHs more than 50 years of success. Recognition of this support of the arts can often be seen in creditspreceding programs on Public Television for the LuEsther T. Mertz Charitable Trust. Another of these charitable organizations, The Mertz-Gilmore Foundation, funds a grant program that supportscauses including the substantial reduction in global warming pollution through sustainable policy and practices. Prioritiesinclude effective implementation of the Regional Greenhouse Gas Initiative through state and regional efforts in theNortheast. Recipients of such grants in 2010 included: the Conservation Law Foundation, Environment Northeast, Union ofConcerned Scientists, Earthjustice, Global Green USA, Environmental Law and Policy Center, The Sierra Club Foundationand the National Parks Conservation Association. PCHlotto Celebrates Earth Day with Help For Haiti. In celebration of Earth Day 2010, PCHlotto partnered with Trees for the Future to donate and plant 50,000 trees in Haiti. Since 1989, Trees for the Future has been helping communities around the world plant trees, and the recent earthquake in Haiti required a renewed and urgent focus to be placed on the country’s devastated environment. PCH is proud to contribute to restoration efforts. PCHlotto members were able to play the Grow Your Green Instant Win Game which featured an eco-friendly online gamecard. Traffic soared on PCHlotto with game plays and page views at all-time highs and Publishers Clearing House was ableto help create a healthier environment.