Introduction Introduction – from our CEO

t used to be that great corporations Today the opinions of people footprint of each use of Data protection is a I expect to be discussing outside the company are often their products. signi"cant issue for us and in sustainability topics many grew and prospered through a simple as important as decisions made They make green claims for 2012 we reviewed all WPP’s times during 2013 and genuinely relationship with society. They met within. Social media and instant their products that are based on data protection, data security welcome your thoughts on how I communication can make an objective assessment of real and privacy policies, and we can do better. market demands, complied with the law or break a company in weeks environmental impacts across the introduced new policies covering and gave a small slice of pro"ts to good or even days. whole product life-cycle. They social media and IT and security. A teenager in Mississippi can understand that there is no such We developed a Data Code of causes at the end of the year. launch an online campaign that thing as a ‘sustainable ’ – just Conduct – a one-page set of persuades a major brand to those with fewer environmental principles on how WPP uses Sir change its formulation. Companies impacts and those with more. and protects data. Next, Group chief executive are being held to account by They are the companies who management teams in every [email protected] people with nothing more than a take responsibility for standards WPP unit worldwide will smartphone and a sense of justice. in their supply chain, knowing complete a WPP Data Health This is unsettling for brand that with the rapid growth Checker to help them understand managers who are used to having of mobile internet in developing how to manage this complex set complete control of their public countries, every factory or mine of considerations. image. They are right to be fearful. is a tweet away from their Investing in the future supply Once a reputation is tarnished, customers. To do otherwise is of talented people for our it can take years and millions foolhardy in the extreme, as the business is important for our of dollars to put it right. recent row over food processing long-term prospects. I have said In this new reality, it is no and the use of horsemeat in previously that our industry is surprise we are seeing an upsurge Europe demonstrates. too inclined to poach talent and Watch online www.wpp.com/sustainability in investment in brand Such companies use corporate not willing enough to create it. environmental credentials and advocacy to promote The establishment of the WPP social bene"ts. But when virtually environmental and social change School of Communications and every product is promoted as in regulation, aligning lobbying Marketing in Shanghai is an Awards and recognition 2012 sustainable and every other to their brand promises. example of how we should be purchase bene"ts a good cause, They target social spending leading in training new talent scepticism and accusations of strategically, selecting causes where it is in short supply. greenwash are bound to follow. where the giving of money, product We continue with our own We know that credible, and employee time makes a target to cut the carbon footprint long-lived are established social difference while building of each employee by more than on the sound foundations brand equity. 60 per cent to 1.2 tonnes by 2020. of quality and effectiveness. And increasingly they involve This is challenging, despite a So when it comes to their customers – as participants sustained policy that demands sustainability, how can we tell in their campaigns and through energy-ef"cient of"ces and IT, these companies from their peers? the products they buy. and creating a global network of They are the ones embarking In this, our 11th sustainability more than 500 videoconferencing on challenging programs to report, we review our own suites. We will continue to reformulate products towards progress in the work we do increase energy ef"ciency while GRI indicators signi"cantly lower environmental for clients, in the time we donate investigating the role of green covered in this section: impact, dramatically reducing to causes and in the way we run energy purchasing in our overall 1.1, 2.1, 2.10 or even eliminating the carbon our company. carbon strategy.

2 WPP SUSTAINABILITY REPORT 2012/2013 WPP SUSTAINABILITY REPORT 2012/2013 3 Introduction Introduction Fast read

Impact of our work Marketing standards Employment Environment Social investment

We believe that marketing It is important that the We seek to recruit and We aim for WPP to be a Creative teams in our and communications work we create balances retain the best, developing low-carbon and resource- companies provide services can play an commercial objectives our people’s skills so we can ef"cient Group. Our communications services important role in progress with the need to represent continue to deliver the service environmental strategy to charities for little or no fee, towards a more sustainable products and services our clients expect, wherever covers energy and climate and negotiate free media society. Our agencies work honestly and accurately they are in the world. Our change, resource ef"ciency space to run their campaigns. with clients on many and to protect consumer commitment to diversity and and waste management. This pro bono work offers aspects of sustainability. privacy. Clear policies, inclusion helps us to recruit exciting creative opportunities training and communication and retain talented people to our people and supports reinforce our commitment from all backgrounds. their development. to ethical behaviour.

Progress in 2012

Our network of agencies We refreshed our business WPP companies invested Our carbon footprint WPP companies undertook with specialist sustainability ethics training, which has now £57.8 million in training per person was 2.45 tonnes, pro bono work worth £11.1 offerings continued to grow been completed by over and wellbeing 28% lower than 2006, but million and made cash 100,000 employees missing our 2012 interim target donations to charities worth Clients who engaged with Introduced a leadership £5.1 million WPP on sustainability were We published the WPP Data training program in Videoconferencing usage worth at least $1.2 billion Code of Conduct to inform our Johannesburg for our increased by 58% from 2011 Our social investment was (£0.8 billion) in revenue people of their responsibilities Africa agency leaders £16.2 million, equivalent to 1.5% We were ranked by the of reported profit before tax by WPP WPP companies worked 47% of senior managers Carbon Disclosure Project in companies is shedding with industry partners to were women, as were 32% the B band for performance WPP media agencies new light on sustainability improve practices and of executive leaders and received a disclosure score negotiated free media space issues and attitudes communication around of 81/100 worth £14.3 million on behalf use of consumer data of pro bono clients We underwent external assurance of our carbon Our total social contribution data by Bureau Veritas was £30.5 million, equivalent to 2.8% of reported profit before tax In our companies

Read how & Mather’s Read how Sudler & Hennessey, Read how MediaCom London’s Read how WPP’s Team Detroit Read how Rapid Rescue, a pro Ad Makeover campaign for Dove a WPP healthcare agency, apprenticeship scheme is helping cut electricity use in its Dearborn bono app from JWT Singapore, is displacing negative ads with has implemented a compliance diverse young people begin a of"ce by 33%. is enabling people facing a medical positive messages. program to make sure its career in marketing services. emergency to get help from trained client work meets the highest "rst aiders. ethical standards.

See page 20 See page 35 See page 49 See page 64 See page 85

4 WPP SUSTAINABILITY REPORT 2012/2013 WPP SUSTAINABILITY REPORT 2012/2013 5 Who we are

6 WPP SUSTAINABILITY REPORT 2012/2013 WPP SUSTAINABILITY REPORT 2012/2013 7 Introduction Introduction Our companies & associates

Advertising Media Investment Kantar Media Penn Schoen Berland■ Direct, Digital, OOT2 Entertainment marketing WPP Digital partner Management www.kantarmedia.com www.psbresearch.com Promotion & www.oot.it Alliance companies ADK1 Kantar Operations Prime Policy Group RTC■ www.alliance-agency.com www.kantaroperations.com www.prime-policy.com Relationship www.rtcagency.com Youth marketing www.adk.jp GroupM: Ace Metrix3 Marketing 1 The Geppetto Group Bates CHI&Partners www.groupm.com Kantar QGA Smollan Group www.acemetrix.com www.kantarretail.com www.quinngillespie.com www.smollan.co.za www.geppettogroup.com www.bateschi.com KR Media eCommera3 1 A. Eicoff & Co Real estate marketing CHI&Partners www.krmedia-france.com Kantar Worldpanel RLM Finsbury Smollan/Headcount www.ecommera.com www.eicoff.com Pace www.chiandpartners.com www.kantarworldpanel. www.rlmfinsbury.com www.smollan.co.uk 1 + Globant 1,2,■ com Actis ■ www.paceadv.com Dentsu Y&R www.maxusglobal.com Wexler & Walker Public Studiocom www.globant.com ♦ www.actis.ru Technology marketing www.yr.com Lightspeed Research Policy Associates www.studiocom.com 3 MediaCom ■ HDT Holdings Technology www.lightspeedresearch. www.wexlergroup.com AGENDA+ + Banner Corporation Grey www.mediacom.com These Days www.hdtmedia.com com www.agenda-asia.com www.thesedays.com www.b1.com www.grey.com MEC In Game Ad Interactive3 1 Millward Brown AKQA ■ Media & production HS Ad www.mecglobal.com VML www.ingamead.cn www.millwardbrown.com www.akqa.com services www.hsad.co.kr www.vml.com 3 + The Farm Group Invidi The Futures Company Branding & Identity Aqua Wunderman ■ john st. www.mindshareworld.com www.farmgroup.tv www.invidi.com www.thefuturescompany. www.aquaonline.com www.wunderman.com www.johnst.com Outrider 3 Jumptap3 com Addison● Barrows1 Imagina JWT www.outrider.com www.jumptap.com TNS www.addison.co.uk www.barrowsonline.com www.mediapro.es www.jwt.com Catalyst 3 mySupermarket3 www.tnsglobal.com BDG architecture + design Blast Radius+ MRC Ogilvy & Mather Advertising www. www.mysupermarket.co.uk Other marketing www.bdg-a-d.com www.blastradius.com Specialist www.mrcstudios.com www.ogilvy.com catalystsearchmarketing. Moment Systems3 consultancies Coley Porter Bell Brierley & Partners1 United Visions Santo com Communications www.miaozhen.com ohal www.cpb.co.uk www.brierley.com www.united-visions.de www.santo.net Xaxis 3 1 www.ohal-group.com + The Weinstein Company nPario 1 Dovetail Designkitchen Scangroup www.xaxis.com Corporate/B2B www.npario.com www.dovetailfurniture.com www.designkitchen.com www.weinsteinco.com www.scangroup.biz Quisma Ogilvy Primary Contact Proclivity Systems3 FITCH● Dialogue Scholz & Friends www.quisma.com www.primary.co.uk www.proclivitysystems.com www.fitch.com www.dialoguelondon.com www.s-f.com Other media agencies Demographic marketing 3 Public Relations & ● Say Media 2 Lambie-Nairn Digit ■ Soho Square M/Six Bravo www.saymedia.com Public Affairs www.lambie-nairn.com www.digitlondon.com WPP Digital www.sohosq.com www.msixagency.com www.bebravo.com 3 ■,● SFX Entertainment TAXI ■ tenthavenue: EWA K&L■ ♦ 24/7 Media www.sfxii.com Blanc & Otus www.landor.com www.ewa.ltd.uk www.kanglee.com www.taxi.ca www.tenthavenue.com www.247media.com Vice Media3 www.blancandotus.com PeclersParis● FullSIX3 MosaicaMD Team Detroit Forward Acceleration www.vice.com Buchanan Communications www.peclersparis.com www.group.fullsix.com www.mosaicamd.com www.teamdetroit.com www.theforwardgroup.com www.acceleration.biz Visible1 www.buchanan.uk.com ● 1 1 The Jupiter Drawing Room1 Joule The Grass Roots UniWorld ■ www.visibletechnologies. Burson-Marsteller www.thebrandunion.com www.grg.com www.uniworldgroup.com www.jupiter.co.za www.jouleww.com www.bluestatedigital.com com www.burson-marsteller.com The Partners● G2▼ ▼ United Network Kinetic Worldwide Wing WildTangent3 Chime Communications www.the-partners.com www.g2.com The Data Alliance www.group-united.com www.kineticww.com www.insidewing.com www.wildtangent.com 1 ● www.thedataalliance.com ■ PLC VBAT – G2 Branding & Design Employer branding/ Y&R Fabric Worldwide1 www.chimeplc.com www.vbat.nl – G2 Interactive recruitment www.yr.com www.spafax.com www.fabricww.com Clarion Communications – G2 Direct & Digital JWT Inside – G2 Promotional Marketing F.biz www.clarioncomms.net www.jwtinside.com WPP knowledge Cohn & Wolfe■ High Co1 www.fbiz.com.br Event/face-to-face community Consumer Insight www.cohnwolfe.com Healthcare www.highco.fr marketing Communications iconmobile■ MJM www.hogarthww.com www.deweysquare.com www.iconmobile-group.com www.mjmcreative.com Johannes Leonardo1 The Store Kantar: Kassius+ www.johannesleonardo.com www.wpp.com/store www.kantar.com Glover Park Group Feinstein Kean Healthcare† Metro www.gloverparkgroup.com www.kassius.fr www.metrobroadcast.com POSSIBLE Added Value www.fkhealth.com KBM Group+ www.possible.com www.added-value.com Hering Schuppener GCI Health Foodservice marketing www.heringschuppener.com www.kbmg.com The Food Group Rockfish Center Partners www.gcihealth.com Key Mando www.thefoodgroup.com www.rockfishinteractive.com 1 Associate www.centerpartners.com Hill+Knowlton Strategies ghg 2 Joint venture www.hkstrategies.com www.mando.co.uk Sports marketing Salmon 3 Investment IMRB International www.ghgroup.com ▼ Maxx Marketing 9ine Sports & Entertainment www.salmon.com A Grey Group company www.imrbint.com Ogilvy Government Relations Ogilvy CommonHealth ♦ A Hill+Knowlton Strategies company www.ogilvygr.com www.maxx-marketing.com www.9ine.com.br Syzygy1 GRI indicators † An Ogilvy company Kantar Health Worldwide ■ 1 www.syzygy.net A Young & Rubicam Group company Ogilvy Public Relations www.ogilvychww.com OgilvyAction JMI covered in this section: ● A member of B to D Group www.kantarhealth.com + www.ogilvypr.com ■ www.ogilvyaction.com www.justmarketing.com The Media Innovation Group P art of the Wunderman network Kantar Japan Sudler & Hennessey 2.2, 2.3 As at April 2013. OgilvyOne Worldwide PRISM Group www.themig.com www.kantar.jp PBN Hill+Knowlton Strategies www.sudler.com www.pbn-hkstrategies.com www.ogilvy.com www.prismteam.com

8 WPP SUSTAINABILITY REPORT 2012/2013 WPP SUSTAINABILITY REPORT 2012/2013 9 Introduction Introduction Why sustainability matters

ustainability issues are Our "ve areas of focus are: How sustainability supports our strategy Improved cost ef"ciency The impact of our work for clients important to WPP in Marketing standards Our commitment to sustainability supports these Our climate change strategy reduces costs associated the work we do for our Employment practices priorities and targets by creating revenue growth with business travel and energy use in of"ces. S Environmental performance and minimising costs in the following ways: Initiatives to improve the health and wellbeing clients, the way we run our Social investment including pro bono work of our people can help to improve productivity and of"ces and consider our From integrating high ethical standards, Client relationships and revenue support reduce costs related to time off work due to illness. to reducing our impact on the environment and people and other stakeholders. supporting charities through pro bono work, Sustainability issues in#uence our clients’ business Access to digital marketing and our commitment to sustainability supports our strategies in all markets and they increasingly look insight business business strategy. to our companies for advice on these topics. Our ability to anticipate and understand the implications Our clients require assurance that we meet best of social and environmental trends enables us to practice standards for privacy and data protection. Strategic priorities and !nancial targets respond to the growing number of sustainability- Strong policies and procedures at Group and related marketing briefs. operating company level are essential, as is our WPP’s four core strategic priorities are to: Many client tender processes now include requests involvement in the debate on changes to regulation Increase the geographic share of revenues from for information on our sustainability policies and governing the use of data in marketing. the faster-growing markets; performance. Clients who engaged with WPP on Increase the share of revenues from new media; our approach to sustainability were worth at least Creating the right skills base Increase the share of more measurable marketing $1.2 billion to the Group in 2012. services, with a focus on digital and consumer Our investment in high-quality bespoke training insight, data analytics and the application of new Attracting and retaining the best people helps us to develop the skills needed to grow our technology; and business in key areas such as digital marketing Achieve ‘horizontality’ by ensuring our people There is "erce competition for talent in our industry. and managing cross-company client teams. In work together for the bene"t of clients. Leading employment practices help us to attract fast-growing markets, investment in education By implementing this strategy effectively we and retain the best people, while our efforts to create beyond WPP helps to widen our future talent pool. will be well positioned to deliver on our long-term a diverse and inclusive culture widen our potential Our focus on diversity and inclusion enables "nancial targets: talent pool. us to re#ect consumers in all the markets in which Revenue and gross margin growth greater Potential recruits frequently raise questions we operate. than the industry average. relating to our sustainability performance, Annual improvement in operating margin demonstrating that our commitment supports Reputation risk management of 0.5 margin points or more. recruitment and retention. Our involvement in pro Annual organic PBIT growth of 5-10%, bono work also supports employee engagement. Effectively managing social, ethical and and by acquisition by another 0-5%. environmental risks such as those associated with Meeting investor expectations client work helps to minimise the possibility of damage to our reputation over the longer term. WPP share owners continue to show interest in how The robust ethical policies and training we have we manage sustainability risks and opportunities. implemented are essential as we expand the Group Europe has the largest market for responsible in more markets where there is a higher risk of investment, with approximately €5 trillion of assets bribery and corruption. under management. The US has $3 trillion, and Asia is predicted to have $4 trillion by 2015.

10 WPP SUSTAINABILITY REPORT 2012/2013 WPP SUSTAINABILITY REPORT 2012/2013 11