news corp\'s global energy initiative
DESCRIPTION
New Corporation\'s plan to be carbon neutral by 2010TRANSCRIPT
PlanIndustry Overview
GEI Background
Central Issue
What’s Been Done
What Should Be Done
Media Industry & Climate Change
• Not carbon-intensive• Entertainment: Recession-proof?• Advertising accounts for 60% of revenue, ad
expenditures correlate directly with GDP growth
• Power to reach millions• Upside > Downside
GHG Emissions in ContextWORLD 49 billion tons
News Corp Audience 7 billion tons
News Corp 641 thousand
Average U.S. Household
59 tons
Non-U.S. Household 9.5 tons
Climate Change Commitment
• "Our audience's carbon footprint is 10,000 times bigger than ours. That's the carbon footprint we want to conquer.” – Rupert Murdoch, Speach to
Investors 5/9/2007
http://www.cdproject.net
Central Issue
• How can News Corp. become carbon neutral while at the same time creating a cultural imperative for its audience to reduce their own carbon footprint?
• http://gei.newscorp.com/video/2008/11/tcftvs-climate-change-commitme.html
Global Climate Initiative• In 2005, BSkyB, led by James Murdoch, became the first
carbon neutral broadcast company
• He earned the top spot in CNBC European Business’ first-ever list of low-carbon climate pioneers
• Developed world’s first auto-standby technology which automatically puts over 4 million set top boxes into standby if they are not in use after 11pm. Auto-standby has saved an estimated £16 million on customers’ energy bills and 77,500 tonnes of carbon dioxide in 2007.
• Sky Shuttle buses to and from offices make over 5,000 passenger journeys every week.
Global Energy Initiative1. Commitments, Targets and Goals2. Carbon Footprint3. Strategy:
-Reductions-Renewables-Offsets
4. Engaging Our People5. Reaching Our Audiences
Carbon FootprintWorked with Clear Carbon Consulting to measure carbon footprint
Methodology: “control method” of Greenhouse Gas Protocol established by the World Resources Instituteand the World Business Council for Sustainable Development
Environmental ResourcesTrust audits methodology
News Corp Global Energy Inititive Report
Control Method
• Scope 1, “Direct Emissions,” represent emissions from the combustible fuels and other sources that occur directly on sites (i.e. refrigerants) and mobile emissions sources.
• Scope 2, “Indirect Emissions,” represent emissions that occur off-site to produce electricity or steam purchased for use at corporate locations.
• Scope 3, “Other Indirect Emissions,” represents emissions from activities down or upstream from a company’s core business such as product use, waste disposal, commuting, and business travel.
2006 Emissions
48%
3%
5%7%
25%
11%
GHG by Region
Middle EastNorth AmericaEuropeAsiaAustraliaUK
32%
3%5%
5%5%9%
18%
24%
GHG by Sement
Newspapers
Cable
Books
Broadcast Satel-lite
Magazines
Filmed En-tertainment
Television
Other Assets
News Corp Global Energy Inititive Report
Reductions: Lighting
• Fox studio in Los Angeles cut 45 percent of electricity use with more energy-efficient lighting.
• STAR removed one out of every three light bulbs in their Hong Kong headquarters while still providing enough light.
• New Fox Networks Center in Houston will utilize the latest light-emitting diode (LED) lighting technology in all of its master control rooms.
Reductions: Transportation
• Incentives to employees who buy or lease hybrids, 47,000 employees (£1,300 cash back)
• Solar-powered golf carts for moving around the studio
• News America Marketing in the U.S. and News Digital Media in Australia replaced the companies' fleet cars with hybrid vehicles.
Reductions: Facilities
• The Keith Murdoch House in Adelaide, opened two uses 40 percent less energy than a typical office building. It uses solar panels to heat water and collects rainwater from the roof to be used throughout the building. Also uses bio-diesel generators.
• In Australia, our Chullora Print Centre has saved 21,068 Kilolitres over the past 5 years through water reduction strategies and aims to reduce potable water consumption by 50 percent.
Reductions: Facilities
• The use of low emission floorings and paint
• The use of renewable and recycled timber for bench-tops and walls
• Low heat absorbing “Greenscreen” roller blinds are fitted to all windows reducing temperatures and, in turn, air-conditioning requirements
• Motion detectors to turn off a majority of lights when offices and meeting rooms are not in use
• Time clocks on the air conditioning system for after-hours use
Renewable Energy• News International and HarperCollins in the
UK have entered arrangements to buy renewable energy... 70% of News International's electricity will now come from hydroelectric power plants in Scotland
• Saves 36,000 tonnes of carbon next year alone-- that's enough to fill 650 railroad cars with coal
Carbon Offset Projects
• In December of 2007, 60,000 tonnes of VCS offets were transferred from Cheyne Capital to the News Corporation account and immediately retired against the footprints of the following News Corporation businesses:
• News International – 47,742 tonnes
• HarperCollins UK – 8,962 tonnes
• News Limited – 498 tonnes
Working with Partners
• 20th Century Fox, together with Wal-Mart analyzed the carbon emissions caused throughout the production and distribution of its DVDs with participation of more than 20 of its key suppliers
• Set industry standard for DVD production
• BskyB established a process to evaluate the environmental performance of suppliers and provided workshops to help them to improve.
Reaching Audience
• MySpace has launched a channel dedicated to climate change at http://www.myspace.com/ourplanet
Accomplishments• Fox TV show 24 became first carbon neutral show
• Fox reduced the show's overall carbon footprint by 940 tonnes of carbon dioxide through purchasing renewable energy.
• Warner Bros. studios says its energy-efficiency programs save 9 million-plus kilowatt hours and dollars 1 million a year, and prevent 6,471 tons of greenhouse gases
Broadcasting & Cable TVConsiders Climate
Change to Present
Commerical Risk
Recognizes Commerical
Opportunities for Both
Existing and New Products and Services Associated
with Climate Change
Provides Information
on the Strategies
Undertaken to Manage Risks and
Opportunities
Has Implemented
Formal Emissions Reduction
Program with Formalized Targets and Timetables
Estimated Data
Disclosed
Answered Section B of
the Questionairre
CDLI Score
BSkyB ✔ ✔ ✔ ✔ ✔ ✔ 80
CBS DP DP DP DP DP DP N/A
Comcast ✔ ✔ ✔ 15DirecTV DP DP DP DP DP DP N/A
Rogers Commu-nications
✔ ✔ ✔ ✔ 20
Movies & EntertainmentConsiders Climate
Change to Present
Commerical Risk
Recognizes Commerical
Opportunities for Both
Existing and New Products and Services Associated
with Climate Change
Provides Information
on the Strategies
Undertaken to Manage Risks and
Opportunities
Has Implemented
Formal Emissions Reduction
Program with Formalized Targets and Timetables
Estimated Data
Disclosed
Answered Section B of
the Questionairre
CDLI Score
News Corp. ✔ ✔ ✔ ✔ ✔ ✔ 70
Time Warner IN IN IN IN IN IN N/A
Viacom 0Vivendi Universal ✔ 50
Walt Disney ✔ ✔ ✔ 65
Recommendations• Lack of a comprehensive sustainability report• Report includes goals, hardly any results• Rachel Weber admits they are not ready to disclose emissions
figures, only methodology• Last two CDP reports, News Corp has answered questionnaire
but not provided data• Needs to expand scope 3 reports beyond just supply chain and
business travel emissions to include cabron neutrality in its products and logistics
• No report on performance or indicators of measurement that would indicate how effectively it carries out its CSR standards
• News Corp’s Standards of Business Conduct has not been updated since 2006
Roberts Environmental Center at Claremont McKenna College
Works Cited
News Corporation Launches Global Energy Initiative.Publication: Business WireDate: Wednesday, May 9 2007 Carbon Labelling and Low Income Country Exports: An Issues Paper Brenton, Paul, Edwards-Jones, Gareth and Jensen, Michael World Bank, School of the Environment and Natural Resources, Bangor University, 31. May 2008 Beyond carbon neutral © Peter Martin, CarbonSense 2008 CarbonSense, Highleigh House, Teignmouth TQ14 8TL United Kingdom Creative climate change solutions, www.carbonsense.com ,May 2008 Carbon Disclosure Report 2007, Matthew Kiernan Carbon Disclosure Project (CDP), www.cdproject.net Paul Dickinson, Report written by Innovest: Strategic Value Advisors GLOBALIZATION OF SUSTAINABLE DEVELOPMENT?: PRINCIPLES AND PRACTICES IN TRANSNATIONAL CORPORATIONS Dennis A. Rondinelli Prepared for: International Research Colloquium on Multinational Enterprise and Sustainable Development: Strategic Tool for Competitiveness Center for International Business Education and Research Georgia Tech, October 19-20, 2006 Media Release: 26 March, 2008. NEWS DIGITAL MEDIA OFFICIALLY CARBON NEUTRAL Best Practice in Climate Disclosure: Standards and Procedures for Comprehensive Reporting March 4, 2008 Meeting Report USA