Believe in better
BIGGER PICTURE Impact Report 2018 Contents
The challenges facing society today Our purpose and values are broad and complex. That’s why leading businesses need to influence drive our broad contribution and enact change”. to society
Our purpose Bringing better content and better innovation to all of our customers; better connecting them to more of what they love
Our values Forward- Creative & Customer- Collaborative Fair & looking action- led & & inclusive responsible & restless oriented simplifying We believe we We believe We believe We believe We believe are better in doing the in building in new ideas in making when we all right thing. a better and making things better work together. tomorrow. them happen. and simpler. At Sky, we’re at the heart of millions of lives, which gives us a platform to have a positive impact in the communities in which we operate. What we choose to do with this platform says everything about who we are. That’s why we’re guided by Our contribution a clear purpose and values, which drive our broader contribution to society. We believe in doing the right thing for our customers, our staff, our communities and £13.6bn 216,800 £4.8bn our shareholders. That means being responsible in how we do business and acting Contribution to European GDP Total jobs supported Total annual tax contribution on issues that matter. We also take the opportunity to reach beyond our business across Europe across our countries to inspire others to take action and support young people to be their best. Through Sky Ocean Rescue, we’ve taken the critical issue, of the health of our oceans and identified that by inspiring action on plastics an area we can make a significant difference. Over the years, we’ve built a strong track record and we’re excited for what more we can do in the future. This report highlights the work we’ve done in 2017/18 to deliver on our ambitions and our plans for the future. £6.3bn 30,600+ £21.9m What’s inside Content investment Employees Community contribution Our Bigger Picture Strategy 2 Jeremy Darroch Sky Ocean Rescue Impact 4 Group Chief Executive Ocean health into the future 18 Being an inspirational business 22 Standards of working 23 Inspiring young people 25 Data 26
Sky Bigger Picture Impact Report 2018 Sky Bigger Picture Impact Report 2018 1 The Bigger Picture
We believe that doing business well is the only way to do business. That means being responsible in how we go about our business, acting on issues that matter, inspiring young people to be their best and inspiring others to take action.
Being an inspirational Inspiring young people Inspiring others business to be their best to take action • Aim to be the most • Take high-potential young • Use the power of our voice environmentally friendly people and provide the and our reach into millions media company in the world support for their talent to of homes to inspire others • Campaign for ocean health flourish. We’re focused on the to take action on issues that areas of sports, ocean health matter to our customers • Aim to make all our products and technology and services accessible to all • Inspire policy makers, NGOs, our customers • Inspire a broad range of partners and schools to young people about the take action • Set and adhere to the highest media and the skills required standards in our ways • Inspire our 30,000 employees to succeed, through Sky across Europe to join in of working Academy Studios
Our highlights 55% 80% 108,000+ 33.5m
Reduction in CO2e Increase in the Young people People aware intensity in the number of attended Sky Academy of Sky Ocean UK, exceeding scholarships Studios since Rescue in 2020 target launched 2012 our core this year launch markets
Our ambition for Sky Ocean Rescue Transforming Using our voice Making our oceans Investing £25 million on our own business to inspire action resilient with WWF innovative solutions to be single-use to plastic use plastic free through Sky by 2020 Ocean Ventures
The context for our strategy We look at the issues that are most material to us, and talk to our The oceans support the greatest biodiversity on the planet. people, customers and partners to make sure our efforts are focused. We’ve aligned our strategy to the UN Sustainable Development Goals They are the earth’s largest carbon sink and support the to make sure we contribute to these internationally agreed ambitions, where we have most impact. livelihoods of millions of people. They are under threat and we need to help them.
2 Sky Bigger Picture Impact Report 2018 Sky Bigger Picture Impact Report 2018 3 Overfishing Globally, a third of fish stocks are at unsustainable levels and one Taking action in three fish caught never make it to the plate. Other animals in the sea, such as turtles, dolphins, and sharks are endangered as a result on plastic of unsustainable fishing. Shipping Noise and pollution We want to support the change being directed from shipping, as well as collisions, causes harm at one of the biggest man-made environmental to sea animals, especially marine mammals. disasters that faces our planet – plastics in the ocean. We launched Sky Ocean Rescue to raise Plastic pollution awareness about ocean health and encourage the The threats Plastic causes untold damage to wildlife and takes hundreds public to remove single-use plastic from their lives.” to our oceans of years to break down. Microplastics, the small parts Jeremy Darroch of plastic that break off as it Group Chief Executive decomposes, have started to enter our food stream. Humanity is only just waking up to the extent to which it is harming itself and the planetary environment through the plague- proportions of plastic it is dumping into the ocean… We have all played a part in this problem; we must all work on the solutions.” 6.3bn 20,000 Peter Thomson Tonnes of plastic on earth Plastic bottles sold UN Special Envoy for the Oceans per second globally
Oil and gas production Almost a third of the world’s oil and gas Climate change comes from under the sea – from the 8m tropics to the Arctic. Testing, drilling, oil 50% Acidification and warming of spills and the impacts of carbon dioxide Tonnes of plastic the oceans will have profound emissions, all take their toll on wildlife. a year end up Of plastic is used ecological consequences, in the ocean once for an average such as reduced habitats of 12 minutes for polar bears.
An average portion Plastic is of mussels contains now found in +50% about 90 pieces the deepest Of sea turtles have of microplastic reaches of consumed plastic the ocean Dee Caffari – Volvo Ocean Race research team
4 Sky Bigger Picture Impact Report 2018 This page was developed with WWF Sky Bigger Picture Impact Report 2018 5 Our commitments We strive to be a responsible business and we believe we can effect real change. Sky Ocean Rescue aims to shine a spotlight on the issues that affect ocean health, to find innovative solutions to the problem of ocean plastics, and inspire people to make small everyday changes that, together, make a huge difference. Here’s what we’ve committed to do and some of the highlights of what we’ve already achieved:
Goals Achievements
Transforming our own business All new products have single-use • Become single-use plastic free in our products and operations by 2020 plastic free packaging 175 Tonnes of single-use plastic • Work with our business partners and supply chain to do the same saved in 2018, that’s 19 • Lead the way for other businesses by working together and sharing what we learn rubbish trucks full
Making our oceans resilient with WWF 2 We’ve partnered with WWF to protect over 400,000km2 of our oceans for the long 400,000km term. Together, we’re working with people who live, work, and play on our coastlines of ocean around our territories to inspire ocean friendly choices. We’re finding innovative solutions to the threats are under protection facing our oceans and sharing what we learn with government and businesses.
Using our voice to inspire action • Inspire our customers through our programming to raise awareness 1m 33.5m 220+ Engaged with our Aware of Sky MPs and MEPs • Call for government to adopt policy changes #PassOnPlastic Ocean Rescue across signed up to • Encourage millions to join us with key partnerships, such as the Premier League campaign on Twitter our core #PassOnPlastic to inspire football clubs and fans nationwide markets and change their behaviour
Innovating to help turn off the tap of plastics First investments • Launched Sky Ocean Ventures with anchor funding to invest in innovative solutions £25m announced in Partner to plastic use Sky Ocean Ventures summer 2018 Partnerships with launched National Geographic • Three Sky Ocean Rescue Scholars announced with National Geographic with anchor • Skipping Rocks Lab Innovation Challenge funding by • Choose Water and Imperial Sky plc College launched.
6 Sky Bigger Picture Impact Report 2018 Sky Bigger Picture Impact Report 2018 7 Our progress
#PassOnPlastic campaign signed by Announcement of five year 130 MPs WWF partnership Appointment of January 2018 three Sky Ocean October 2017 Rescue scholars in partnership with World Oceans Day National Geographic £25m April 2018 Launch of the Sky Ocean Rescue £25m Sky host Volvo Ocean Tour of Plasticus whose weight Ventures Fund Race Summit in Cardiff is equal to the amount of Volvo Ocean reaching 179,500 people plastic entering our oceans Race starts. March 2018 Premier League every second Sky co-sponsor Turn commits to going June 2018 the Tide on Plastic single-use plastic free June 2017 October 2017 April 2018
2017 2018 2020
Disposable coffee cups removed from our We commit sites, saving 7 million coffee cups per year to being All Sky staff single-use plastic May 2018 issued with reusable free by 2020 water bottles and single-use plastic water bottles Our summit with the removed from Premier League inspires our sites reductions in plastics February 2017 use July 2018 Our branded Sky Mobile SIM products will be single-use Card goes single-use plastic free plastic free Launch of Sky Ocean Our Oceans Conference Rescue campaign with April 2018 Sky News Documentary Announcement of our single-use plastic vision A Plastic Tide October 2017 January 2017 Business challenge for the mobile Our operations front of house will industry on single- be 100% single-use use plastics plastic free June 2018 Sky Ocean Rescue Café single-use plastic free January 2018 Launch of Sky Soundbox, our first new single- 75% use plastic free Our logistics will be 75% product Sky and The Oval single-use plastic free join forces on plastic November 2017 December 2018 at 100th test match August 2017 8 Sky Bigger Picture Impact Report 2018 Sky Bigger Picture Impact Report 2018 9 In March 2018, we announced our £25m anchor Impact objectives commitment and the launch of Sky Ocean Ventures. We’re reporting against the UN Sustainable This impact investment model is committed to Development Goals 12 – Responsible Consumption fostering an innovation ecosystem, investing early and Production, and 14 – Life Below Water. We’ll in mission-driven entrepreneurs, supporting, invest in commercially sustainable business models Accelerating ideas to solve the ocean plastic crisis mentoring and accelerating these young businesses that can deliver impactful solutions. We’ll track and and amplifying their impact using our platforms. report specific data from our portfolio companies Technology focus areas and as we help these companies grow, we’ll report on the complete portfolio results of how our We’re looking for early stage companies creating: companies have reduced single-use plastic usage • Scalable innovations along the entire plastics and leakage, improved the recycling rates and end- value chain, from material to end of life of-life value of plastics, and increased awareness of plastics. Sky Ocean Ventures is a bold new creation that will • Technology-enhanced business models that support breakthrough thinking and invest in promising foster responsible consumption and drive the circular economy model new ideas to help turn off the plastics tap. We look forward • Efficiency improvements in the recycling, clean-up to working with like-minded organisations to help us find and treatment of waste plastics. and support innovators who are developing products, materials and business models that will create meaningful change.” What we’re doing Jeremy Darroch Our first investments Our partnerships Group Chief Executive This summer, we announced our first two National Geographic Innovation Prize investments creating innovative companies We partnered with National Geographic on making products to stop the flow of plastics a new set of investments for projects that into our oceans: develop solutions to stop plastic reaching waterways. We’ll issue entrepreneurs with Sky Ocean Ventures invested in Skipping Rocks a series of Innovation Challenges to address Labs a company pioneering the use of natural inefficiencies in product design and consumer use materials such as alginate, an extract from brown to identify and award pioneering technologies. seaweed, to create materials and packaging National Geographic have committed $10m with low environmental impact. The company’s to bring scientific expertise and media reach first product, the “Ooho”, is a 100% naturally to support Sky Ocean Ventures. biodegradable membrane that can be used for a range of “on-the-go” liquids, including water, Grantham Institute for Climate Change and condiments, and juices. Skipping Rocks Labs is the Environment at Imperial College London building multiple packaging solutions to address Partnering to find more investable ideas that the impact of plastics. Skipping Rocks Labs have can solve our plastic challenges and foster a previously been an “Innovator-in-Residence” circular economy model. This collaboration will on the Sky Campus, trialling their products support the joining of forces between businesses to our people. and scientific innovators, lead by the academic expertise of Imperial College London. We also invested in Choose Water, founded by inventor and entrepreneur, James Longcroft. James has developed a working prototype water bottle made from 100% bio-degradable and “The fantastic commitment Sky has bio-compostable natural materials. Sky Ocean shown to reducing ocean plastics, Ventures is proud to support James’ bold vision both in their own corporate to create a replacement to the single-use plastic environment and by communicating water bottle (of which 1.2 million are bought every minute around the world). James’ this issue to the world, makes them “We are very excited to have Sky Ocean Ventures’ product can break down naturally and a natural partner for us.” support for our new biodegradable bottle, which we quickly in the ocean, addressing the current problem with microplastics Skipping Rocks Labs hope will have a huge positive impact on the oceans. in our oceans. With their help and guidance, we can bring our biodegradable bottles to shelves even sooner.” Choose Water
10 Sky Bigger Picture Impact Report 2018 Sky Bigger Picture Impact Report 2018 11 How we’re removing single-use plastic from our operations
At the 2017 Our Ocean Conference, hosted by the Our production process How we’re transforming our catering operations European Union, we announced our commitment to Over the year, we’ve made good progress removing transform our business by eliminating all single-use single-use plastic from the creation of our TV plastics from our operations, products and supply shows. We provided reusable bottles on sets such chain by 2020. as A League of Their Own and for outside sports January 2017 This is a journey that involves tough decisions broadcasts like darts, cricket and football we no We removed over 500,000 and complex challenges. It’s taking hard work by longer use single-use plastic bottles. We also plastic water bottles per year, our people and partners, but it’s also exciting. made changes to remove plastic cutlery and Sky Ocean that’s 8 tonnes. The commitment has galvanised our people who polystyrene from our outside broadcasts, and on Rescue launch want to see the significant change that’s possible productions, introduced warm flannels to remove January 2017 by eliminating plastic. make-up, replacing the use of thousands of wet wipes. We engage our suppliers in the journey and We started by removing disposable plastic water May 2017 include our single-use plastic policy when renewing We removed 72,500 plastic straws. bottles and providing everyone with a refillable contracts. On an industry level, we work with the bottle. We saved approximately 500,000 plastic BAFTA Albert Consortium to share learnings on how bottles in a year. Our approach is to reduce or to make quick changes to reduce single-use plastics remove wherever we can, by auditing all our single- and identify the industry-wide challenges that there use plastic and taking away things like plastic aren’t any current solutions for. We also support straws, disposable cutlery and milk bottles. We then Albert to integrate measurement of single-use April 2018 reuse anything that can’t be removed, and when we plastic into their calculator tool. We removed 2 million sachets. can’t reuse, we will recycle. Having removed big everyday items, we’re now Working with our catering partners focused on finding even more innovative solutions. Having launched our single-use plastic free Sky The approach we take when looking at alternatives Ocean Rescue café at our Osterley campus, we May 2018 is to make sure we have an overall positive impact set about sharing the lessons across the business We removed 24 tonnes of plastic milk on the environment. in order to significantly reduce single-use plastic bottles replaced by chilled across all our catering outlets. Working with our milk stations. We still face some challenges. One is in our cleaning partner, Gather & Gather, we aim to remove all front- services where we’re looking into developing of-house single-use plastic by the end of the year. technology for viable alternatives to bin bags We’re working on innovative solutions like a circular and shrink wrap. economy approach to our food packaging so it can June 2018 be continually recycled back to the same product. We removed 7 million coffee cups and 3 million lids – pay back is realised within 3 months.
June 2018 20 tonnes of cutlery removed. “Change is very visible in the company – it’s hard not to see. Everyone is drinking from December 2018 reusable bottles and coffee All single-use plastic will cups. Information is throughout be removed from Sky’s front of house operations. 122.5 the offices. Interesting how quickly End of tonnes of plastic habits form.” 2018 will be saved Sky employee
End Our operations will be Sky Ocean Rescue café 2020 single-use plastic free
12 Sky Bigger Picture Impact Report 2018 Sky Bigger Picture Impact Report 2018 13 How we’re removing single-use An external review of our plastic from our products business transformation by University of Cambridge Institute for Sustainability Leadership
We’re working to remove all single-use Box seal Cork pads Internal lid An outside perspective The findings will inform Sky’s work to transform their plastic from our products by the end Is made with Used as a buffer Cut out to business and inspire other businesses to become We want to make sure we’re meeting our of 2018, by innovating and reimagining natural adhesive between the protect single-use plastic free. to hold the cardboard and the Sky logo. commitment to remove single-use plastic in the best the way we package our products. box shut. the delicate possible way, and if not, learn how to do it better. We have thought about the way they are made, casing. how they are delivered and treated in our repair We commissioned experts from the Cambridge centres. We launched our first single-use plastic Institute for Sustainability Leadership to conduct free product, the Sky Soundbox in October 2017. an in-depth review of what we’ve done and how This was followed by other Sky and Now TV we’ve done it. products. The all new Sky Q set-top boxes are now packaged without single-use plastic too. The University of Cambridge will publish this research later in 2018.
Our story of change
Leadership is from the top down – it’s front and centre of the Engagement business strategy. It’s promoted by the executive. It filters all the and change way through from Jeremy down.” 1 Set an ambitious target Management 8 Cardboard packaging Main box Accessories to be single-use plastic free Internal engagement 100% fully recyclable, Our new design A compartment is built as a business by 2020 FSC paper only. eliminated the need to in to hold cables in created a significant shift protect the box with a place without plastic in behaviour plastic bag. bags or ties. 5 9 Sky Mobile SIM Working with Unipart, logistics partner Leadership Governance & accountability External engagement Sky Ocean Rescue worked in partnership with We’ve significantly reduced the use of plastic in “I’m incredibly proud of the hard work, creative Steering Group our Sky Mobile SIM card by supplying it without thinking, and passion that our people have suppliers to innovate the traditional credit card surround. The SIM put into significantly reducing the usage of card is glued to card, folded single-use plastic. and closed with a paper seal. 6 10 It’s a big undertaking, but we won’t rest until 2 Systematic approach We reuse all plastic surplus from Sky culture Systematic change established a baseline and influenced beyond we have found ways to eliminate all single-use existing values and ethos to the manufacturing process to tracked progress the business make more cards, so the process plastic from the supply chain. ‘do the right thing’ is free of plastic waste. As a key partner of Sky, we are proud to support the incredible work they have been doing with 7 Sky Soundbox Sky Ocean Rescue to highlight the issue and 3 Budget and resources inspire action. Leadership from the top delivered within existing At Sky, we don’t want it to be a This presented an exciting challenge to our design clearly defined budgets and resources flash in the pan – want to make team, to find a new way of protecting the In line with Unipart’s commitment to responsible the ambition sure it’s sustainable and keep a Soundbox and deliver an amazing unboxing business, we wanted to take the lead in our legacy going.” experience. A layered cardboard industry, and ensure we are doing absolutely structure supports a cardboard everything we can to eliminate plastic from 4 pulp overlay to encase the our customers’ supply chains.” Leadership at all levels We opened up every box, took product. The internal structure responsibility taken to embed pictures, removed everything. fits into a sleeve that carries Claire Walters in own area of the business Handling it gave us ideas for the Sky Soundbox brand. Chief Commercial Officer, Unipart Logistics potential solutions.”
14 Sky Bigger Picture Impact Report 2018 Sky Bigger Picture Impact Report 2018 15 What we’ve achieved so far: Using our voice Volvo Ocean Race team ‘Turn the Tide on Plastic’ to inspire action won The Beyond Sport Award for The Best Since the launch of Sky Ocean Rescue with the Partnerships Corporate Campaign groundbreaking documentary ‘A plastic Tide’, Sky In March 2018 we announced that we are joining in the Sport for News have created a further five documentaries forces with the Premier League into the fight and covered ocean health on a daily basis. The against single-use plastic. By working together we’re Good category coverage has won awards including a Golden Nymph aiming to encourage and provide advice to help at the Monte Carlo Film Festival. football clubs go single-use plastic free. And we “So many other media outlets are now talking about hope to inspire many fans to #PassOnPlastic and it. W hen we launched last January nobody was develop new resources for schools through the 33.5m talking plastic, and now everyone’s talking about it Premier League Primary Stars programme. We held and that is so exciting and makes us feel really proud.” a summit where Sky, the Premier League, Clubs and aware of Sky Ocean Helen-Ann Smith, SOR Documentary Producer. NGOs shared their stories and ideas of how to make Rescue* changes. 74% of attendees said they were inspired Customer engagement to swap merchandise packaging for single-use In January, we celebrated one year of Sky Ocean plastic free alternative and 86% of Clubs want to 4m Rescue by encouraging everyone to join us and engage fans with the single-use plastic problem. #PassOnPlastic and make simple everyday changes inspired or changed to cut down on single-use plastic. Since then over behaviour 33.5million people have shown their support and over 220 MPs and MEPs got involved. 3m Inspiring through content engaged with Plasticus Sky Kids Dive In and Do It across 25 locations A brand new Sky Kid’s series, for 6-10 year olds is part of our commitment to inspire young people to make simple everyday 1,583 changes to stop our ocean Sky staff volunteered from drowning in plastic. on beach cleans The series delves into the issues of single-use plastic and other issues facing Sailing has a vested interest in ensuring the health our ocean. of our oceans. That’s why we teamed up with 6 tonnes ‘Turn the Tide on Plastic’, skippered by Dee Caffari, competing in the Volvo Ocean Race. The team of single-use plastic worked to promote the UN Clean Seas campaign avoided at the Kia Oval Inspired by Sky Ocean Rescue Yuvraj Rathore, and the message reached millions of people aged 7, wrote to Jeremy in November 2017 during stopovers. explaining how he had been watching the Sky Ocean Rescue programmes and news The ‘team also collected seawater samples that and learning about how “plastic bags were tested for microplastics as well as levels and bottles are getting in to the sea of salinity, dissolved CO2 and algae. The findings and killing the whales”. were uploaded ‘open source’ to benefit scientific understanding of the plastic threat. “Sky Ocean Rescue are doing fantastic things Yuvraj wanted to help, so we took for our oceans. What I hope we can achieve Plasticus to his school and now In Italy, we’ve partnered with the VR 46 Moto GP together, is to take the level of consciousness that Yuvraj and his friends have team to raise awareness with fans and improve been making changes recycling practices at the Misano Grand Prix. Sky has already helped create, to the next level in their school and talking of real understanding of the issue and turn that to others. Yuvraj wrote a into action.” beautiful poem which you can read on the back page Emily Penn of this report. Skipper and Sky Ocean Rescue Ambassador
*Incite research 2018, from a survey of 24,268 nationally representative interviews across the UK, Germany and Italy. 16 Sky Bigger Picture Impact Report 2018 Sky Bigger Picture Impact Report 2018 17 Sky Ocean Rescue Protecting our scholars oceans with WWF
We aim to inspire young people to be their Introducing Dr Martina Capriotti Sky Ocean Rescue aims to create a legacy for ocean best, that’s why we’ve partnered with National health. This isn’t something we can do alone. That’s Lundy Island MPA Martina Capriotti grew up next to the Adriatic Geographic to support three Sky Ocean why we partnered with WWF to protect our oceans, Protecting and making our oceans more resilient Sea in Italy and developed a strong passion for Rescue Scholars to drive research that will so they’re resilient to challenges like plastic pollution. helps not only marine animals, but also those protecting the beauty and health of the ocean raise awareness of the issues surrounding who live and work on the coasts. People like Ben through scuba diving. It was while scuba diving that We’re working together to support Marine Protected ocean health and advance our knowledge of Bengey, who at 21 years old has just bought a she realised the extent of pollution in the ocean, Areas (MPAs), special areas of the ocean where human the ocean. Sky Ocean Rescue and National new fishing boat. and particularly how fish grazed around it. Martina’s Geographic are offering the young innovators, activity is managed, similar to national parks on land. studies have focused on marine environments who are passionate about our oceans, support They’re an essential conservation tool to improve the Ben loves fishing, but his boat will pay for itself and toxicology to date, leading to a PhD from and mentoring for their marine-based health of the ocean and allow marine environments through eco-tourism - cruising through Lundy’s the University of Camerino (Italy). research projects. to recover from degradation, including impacts from spectacular bird and marine life, and taking shipping, mining, overfishing, climate change and divers to the marine nature reserve. As an Ocean Rescue Scholar, Martina is developing At National Geographic’s Festival of Science plastic pollution. in Rome in April 2018, we announced the three an innovative approach for testing the chemical Fishing is tough, Ben told us. For him and others Sky Ocean Rescue Scholars for 2018, who are: impact of microplastics on marine life in the • Over five years we’re donating £10 million to WWF. like him, the dual income is essential. Ben is a seas around her native Italy. She hopes that the first-generation fisherman. He chose this line of • By the end of this commitment, in 2023, WWF Imogen Napper – The Future of Clothes Washing outcomes of this project will benefit the scientific work because he loves to be out on the water. Plymouth, UK will have put in place stronger protection for community in helping to understand the impact 2 of plastic in the ocean. over 400,000 km of ocean from unsustainable The protections Annette Fayet – Why are puffins going extinct? and damaging practices so marine life can thrive being put in place Oxford, UK once again. around beautiful Lundy (Norse for Martina Capriotti • We’ll create a model and strong case for good MPA “Puffin”) Island San Benedetto del Tronto, Italy management and leave a legacy of inspired people, should ensure businesses and governments who want to be part of the livelihoods of this crucial work. people like Ben are sustained, and “It’s a privilege for me to have been the environment chosen to be part of this big continues to be family that bases its principles enjoyed by all. on the discovery and protection of the environment and its living beings. Marine protected areas funded by Sky Ocean Rescue My ambition for the next year is to research, day after day, without Devon and Outer Hebrides thinking about a project that marine protected areas will finish, but thinking about Harbour porpoise special a project that is in constant areas of conservation development, contributing German North Sea marine protected area to the progress of science.” & Wadden Sea marine Dr Martina Capriotti protected areas Sky Ocean Rescue Scholar The Pelagos Sanctuary and proposed extension
18 Sky Bigger Picture Impact Report 2018 Sky Bigger Picture Impact Report 2018 19 A legacy for ocean health An independent review by Forum for the Future How we accelerate At Sky we know there’s momentum happening Through research and interviews Forum for the Here are the key lessons from Forum for the • Be bold in ambition (and flexible): It is critical to in the world of ocean health and plastics, but we Future have identified nine strategies that we Future’s review: set ambition based on the change we need to see. wanted to understand how far it has come. That’s believe have the potential to support systemic At Sky, we set the ambition of becoming single-use why we asked Forum for the Future to carry out an change in the plastic system today – as well as • Diagnose the system: Start to map out how plastic free by 2020 well before we had a plan on independent review of how people, businesses and in tackling sustainability challenges more broadly. the plastic system works and how it is changing how we would achieve this. governments are changing their approach to the to help inform your strategy. For Sky, we use of single-use plastics. We have concluded that this is the start-up phase started by raising the public’s awareness of • Plan for disruption: Businesses with incremental of change in the plastics system, but with the issue of plastic pollution and working out targets for recycling and recyclability, or ones Forum for the Future reviewed the ‘plastic system’ the opportunity to move into the acceleration how it was being used within our business and which are not moving fast enough, are likely through a framework called the Multi-level phase if we play things right. supply chain. to be disrupted. At Sky, we moved fast, making Perspective, which helps to explain long-term shifts. immediate changes even when they were They mapped some of the things that have already Forum for the Future are preparing to launch their • Understand your leverage points: What can disruptive and we didn’t have all the solutions yet. taken place, and are happening now in the world research following this report and together, we are you change to help influence the system. For Sky of ocean plastics. hoping to inspire others with the aim of moving into our opportunity was through using our voice • Experiment and learn: Create experiments with the acceleration phase to create a significant and through our news and TV programming to an active learning component to balance the long lasting change. effect change. short-term need to act with the importance of implementing long-term changes to the system that stand the test of time. At Sky, we challenged ourselves to come up with innovative new Ocean plastic: a story of system change by Forum for the Future solutions which often resulted in a better finished product for the long term. Phase of change Start up • Collaborate with others: This is vital to align Acceleration Stabilisation and complement existing activity and to amplify change. Sky held events across Europe to bring Landscape: The big together industries to discuss the challenges, picture ‘operating context’ solutions and share learnings as we know we can of long-term megatrends Create a robust case only change the plastic system through everyone and shared social values for change by generating working together. Shift culture and science-based information behaviours to enable • Tackle the elephant: How can what you do drive a new mainstream mindset and behaviour shifts which fundamentally transform the plastic system. At Sky we’ve faced the challenges head on, engaging our people, our customers and suppliers to get everyone talking Regime: The mainstream, about the challenge and solutions. day-to-day ‘business • Stick it out: Change is hard and slow, particularly as usual’ transformational change that profoundly shifts Make the information Create collaborations to Develop policies (2) that reinforce the way the mainstream operates. We are on widely accessible align mindsets and goals, systemic transformation the brink of a system change and so it’s more enable shared learning, important than ever we keep accelerating so and spark new innovations people don’t become fatigued and support for the issue starts to wane. • Start now! There will never be a ‘perfect’ moment Develop policies (1) Create the right incentives, business Develop rules, measures for action in a system which is constantly and that facilitate systemic models and financing to help and standards for the rapidly changing, as plastics is today. For this transformation the mainstream adapt to change new mainstream reason it is important to start now, and to learn from and evolve interventions for change as you go. At Sky, we encourage everyone to start now on this journey with us as together we can create Niche: The margins lasting change. of the mainstream Create routes for new innovations Create new to scale and mainstream disruptive innovations
20 Sky Bigger Picture Impact Report 2018 Sky Bigger Picture Impact Report 2018 21 Being an inspirational Setting the highest business standards of working
At Sky, we’re committed to doing the right thing Strong partnerships are a key way for Responsible sourcing Accessibility and beyond this, inspiring others to do the same. us to support the transition to a low Our ethical, social and environmental standards We aim to connect all our customers to more of carbon economy. This year we have joined are integral to our culture and key to the way we what they love and work to make our TV content, Environment the Cities C40 group, working with the collaborate with our suppliers. We make sure our products and customer service accessible to all, We aim to be the most environmentally friendly Greater London Authority, the B team and others responsible sourcing principles are met through regardless of impairments. media company in the world. to push ambitious targets to make London the risk assessment, training and collaboration world’s greenest global city. Over 80% of our Sky linear and On Demand Our strategy ensures that we consider the with suppliers. entertainment is now available with subtitles, and environment in everything we do – from the energy We also encourage climate action with our In total, suppliers that account for over 90% we continue to work with third party broadcasters consumption of our buildings through to the suppliers,through the Carbon Disclosure Project’s of our spend on goods and services responded to provide access services On Demand. We audio components we use in our products. This strategy (CDP) Supply Chain work. Currently, 78% of our to environmental, social and ethical questions. describe just under 30% of our linear TV content, has served us well. We’ve achieved a 55% reduction top 50 suppliers have integrated climate change Our high risk product suppliers are subject to a going beyond the Ofcom requirement of 10% and in carbon intensity against our 2008/09 baseline, initiatives into their strategies. four-year rolling audit programme by a third party are working to improve the accessibility of our two years ahead of target. We are now setting our We continue to develop better, more sustainable supplier. Ten further audits are carried out by the On Demand content. path towards net zero carbon by 2050 across the products and we’re working to eliminate single-use Responsible Business Alliance each year. Sky Group. We are proud of the work of our audio describers do plastic in our products. This year, we removed all We are aware that some manufacturers may at Sky’s head office in West London. We match their We’ve been focused on the energy efficiency of our plastic packaging from Sky Q, the NOW TV Smart conceal issues during our audits. To take steps to voice and expertise to each programme and make buildings and increasing investment in renewable Stick and Sky Mobile SIM card packaging, and mitigate this, we developed training for other types sure they stay consistent throughout each series. energy. In our Sky Central building, we’ve realised launched Sky Soundbox, our first new product with of factory visitors, including engineers, buyers and further efficiencies better aligning our generators plastic-free packaging. By the end of 2018, all of our quality managers, to increase capacity to recognise to office capacity. Sky branded products will be single-use plastic free. indicators of potential forced or child labour. We remain committed to using 100% renewable Read more in our Sky Ocean Rescue energy in our operations and we continue to offset Impact Report. Human rights any unavoidable emissions to maintain our carbon In Germany, by focusing on sustainability and In line with our values, we respect the rights of neutral status. Going forward, we will capitalise on carefully considering product recycling in the design everyone we impact. Our approach is based on the our investments in photovoltaic cells to harness of Sky+Pro, we’ve been able to refurbish and return International Bill of Human Rights, the International TV solar energy for our buildings, on-site wind turbines over 90% of all set-top boxes to market over the Labour Organisation Conventions and the UN We’re continually improving our and a combined cooling heat and power unit (CCHP) past 12 months. In addition, following a review of Guiding Principles on Business and Human Rights. audio description, sign language aiming towards net zero carbon by 2050. our investments in environmental efficiencies, Our focus has evolved as our understanding of and subtitles across our channels. Sky Deutschland has been awarded the Ökoprofit where the risks lie has increased. Our significant This year, we completed the work to environmental certification, further cementing our focus is now on products and merchandise along enable subtitles on demand for our position as an environmental leader. with TV, sports and news production. entertainment across all NOW TV, including our iOS and Android Apps. Our Human Rights Steering Group involves representatives from across the business whose Products role it is to address salient issues and to identify Sky Q is a highly accessible product and its roll out opportunities for leadership. Our commitments in Germany and Italy has improved accessibility are on our website, our Ways of Working document settings there. Voice control and and our Responsible Sourcing Policy for suppliers. search make finding and playing 55% We also provide training to relevant teams on entertainment very easy, and we’re reduction in carbon intensity modern slavery. working and we are working on improving access for our visually two years ahead of target We work with others in our industry through our impaired customers. memberships with the Responsible Business Alliance and TechUK. We’re a founding member Customers of BAFTA’s TV Industry and Human Rights We have a dedicated customer service team for Working Group, sharing insight and building customers with accessibility needs. Our team of 220 100% industry knowledge. renewable energy commitment agents are specially trained to give additional support Our CEO Jeremy Darroch this year joined the Home and make adjustments to help all in our operations customers make the most of our Office’s Business Against Slavery Forum, discussing service. We work closely with our leadership in tackling modern slavery. customers, the RNIB and other Read more about our work on human rights in our partners to keep improving our Modern Slavery Statement. offering to them.
22 Sky Bigger Picture Impact Report 2018 Sky Bigger Picture Impact Report 2018 23 Setting the highest standards of working continued Inspiring young people to be their best Protecting the family Inclusion We want Sky to be the safest place for families to enjoy entertainment online, on screen and It’s our people that make us Europe’s on mobile. leading entertainment company, so we’re working hard to build a diverse We take high potential young people Sky Academy Studios and support them to thrive. Sky Broadband Shield is switched on by default and inclusive organisation where Through Sky Academy Studios, we’re bringing young and helps families filter website content across everyone can be themselves and deliver their This year we added Sky Women in Tech and Sky people behind the scenes of TV to make news reports all internet-connected devices in the home. best work. Ocean Rescue to our scholars programme across using state of the art technology. This year, we have our European markets. These provide a unique We are a founding member of Internet Matters, We want every voice to be heard and every introduced fictional storytelling and future innovation combination of financial support, personal ideas into our creativity workshops. and continue to strongly support it. We are person to feel confident sharing their own development, learning, mentoring and practical particularly proud that 2.5 million people visited perspective to help us fulfil our purpose. experience of the world beyond their area “The organisation and structure of the workshop Internetmatters.org last year. We’re building an inclusive culture for everyone. of expertise. fosters ambition, creativity and independence We have played a prominent role in public We’re aiming for a gender-balanced leadership as each pupil embraces their own role within We’re also opening young minds to the amazing the project.” Primary school teacher, Scotland. discussions about how to make the UK the safest team and to increase the number of women world of media and entertainment through Sky place to be online. This year we commissioned an working in our technology and engineering Academy Studios and our support for the MAMA As part of our commitment to bring Sky Academy in independent report “Keeping Consumers Safe teams. In April, we published our Gender Pay Youth project. Italy, we have deepened our focus on media literacy, Online: Legislating for platform accountability for Gap Report, summarising the work we’re doing an important issue for students in developing a critical online content”. to increase the representation of women in our approach to news. Sky Academy also went on the workforce and close our gender pay gap. On screen, we provide a range of family-friendly Spotlight on Sky Sports Scholars road to the National Geographic Festival in Rome, with settings and products to help kids and their families We’re aiming to increase Black, Asian and We’re committed to supporting sports at all special guests including Sylvia Earle, American explorer. access our shows safely, such as the Sky Kids app, Minority Ethnic (BAME) representation both levels and with Sky Sports Scholarships, we’re MAMA Youth which gives children their own profiles with content on-screen and behind the scenes. This year we now supporting 12 of Europe’s most promising tailored to their age, as well as setting viewing launched our Digify programme, in partnership young athletes to be the best they can be. The MAMA Youth Project provides media and time limits. with Livity, providing training and work The Scholarship programme has opened its entertainment industry training for 18-25 year olds placements to talented digital creatives from doors to athletes from a wider range of sports from under-represented groups. Over the last year, Data governance BAME backgrounds. this year and for the first time, includes Scholars we supported 24 young people through an intensive We’re responsible for safeguarding personal and specialising in tennis, modern pentathlon training programme, as well as work experience This year we’ve seen two new employee networks commercial data. It’s key that we get this right for and climbing. placements with us and our partners. 98% of the launch: multiculture@sky and body&mind@sky. our customers, our people and our partners. project’s graduates have gone on to work in the media. They join our existing LGBT+@sky, parents@sky, We worked to make sure our data governance and women@sky networks to help more of our “Working with Sky and Last year, MAMA Youth moved into a permanent communication engages employees through our people connect, get involved and thrive at Sky. previous Sky Sports Scholar home at our Osterley campus. This means a closer three R’s approach – Responsibility, Respect and Sam Oldham has really helped working relationship and opportunities such as a Reputation, with champions across the business. partnership with CPL, a production company that work Find out more at corporate.sky.com/inclusion This year we successfully launched our General build my confidence. I look on our A League of Their Own, who will now provide Data Protection Regulation Readiness programme. forward to helping inspire production support to MAMA Youth. On screen standards other young people.“ Between July 2017 and June 2018, Ofcom Joe Fraser 108k investigated 74 complaints across our Sky Sports Scholar, Gymnast Entertainment, Sports and News channels. Young people have now visited This compared to 55 complaints in 2016/17 and 74 Sky Academy Studios since opening complaints in 2015/16. There have been four upheld our doors 2012 adjudications this year based on the television regulator investigations. Our high standard of customer service has been 20% recognised by Ofcom, and we have received the Of Sky Sports Scholars have won lowest level of complaints in the watchdog’s medals on the world stage quarterly report for nine consecutive quarters. 98% MAMA Youth graduates have gone on to work in the media
24 Sky Bigger Picture Impact Report 2018 Sky Bigger Picture Impact Report 2018 25 Group environment data UK and Ireland environment data Group carbon emissions and carbon intensity1,2 UK and Ireland carbon emissions and carbon intensity We have been reporting our carbon footprint for the Group energy on our sites, including photovoltaic cells (solar PV), In the UK and Ireland this year we have hit a number of our We’ve implemented more renewable energy on our sites since 2005/06 including our businesses in the UK, Ireland, wind and geothermal. This year we‘re setting new Group environment targets three years early and as a result are including photovoltaic cells (solar PV), with the latest in Germany, Austria, Italy, Switzerland and Spain. Our Group targets relating to our carbon footprint which support reviewing our targets going forward. In the UK and Ireland Milan, Italy. carbon intensity has decreased from 8.73 tCO2e/£m the transition to net carbon zero by 2050, from a 2015/16 we have reduced our carbon intensity since 2008/09 Going forward we’re setting new ambitious Group-wide revenue to 8.4 tCO2e/£m this financial year. We continue baseline, when we first reported as a group. by 55% and are sending zero waste to landfill. We have to focus on energy consumption and invest in renewable significantly reduced our waste quantities this year, by 19%, environment targets for energy, transport, waste and water. We’re reviewing our current programmes and future Sky Group Sky Group Sky Group UK and Italy Germany and we are focused on reducing this further and recycling a greater proportion of our remaining waste. opportunities to make the leaps forward that we need for 2015/16 2016/17 2017/18 Ireland 2017/18 and Austria net-zero carbon by 2050. We’ll begin reporting on these in Carbon Intensity Our absolute location-based carbon emissions have also the next reporting year. Revenue (£m) 11,965 12,916 13,585 8,931 2,631 2,023 significantly reduced since our 2008/09 baseline from 108,817 tonnes of CO2e to 83,353 tonnes of CO2e in 2017/18, Carbon intensity (tCO2e/£m revenue) 10.35 8.73 8.40 9.33 9.04 3.43 a reduction of more than 20%. Carbon Emissions (tCO2e) Scope 1 Diesel 245 193 174 126 44 4 Target UK and Ireland Target 2009/10 2016/17 2017/18 Progress met Fuel oil 32 33 40 n/a n/a 40 Reduction in CO2e emissions relative to revenue (%)* -50% -8% -53% -55% Gas 4047 4,919 5,012 4,674 338 0 Vehicle fuel 23,614 22,819 23,430 19,290 1,806 2,334 Absolute gross emissions Scope 1 and 2 location-based (t CO2e) N/A 108,817 83,940 83,353 Refrigerants 1,386 1,439 1,305 180 981 144 Increase in energy efficiency across all buildings (%)** 20% – 0% -3% Total Scope 1 29,324 29,403 29,961 24,270 3,169 2,522 Energy obtained from owned or controlled renewable energy Scope 2 (location-based purchased electricity) at Sky-owned sites (%)** 20% – 6% 5% Purchased district heating gross (location-based) 454 592 713 0 479 234 Increase in fleet fuel efficiency (%)** 15% – 10% 15% Purchased electricity (location-based) 94,075 82,747 84,410 59,083 20,142 4,185 Reduction in CO2e emissions from travel per full-time Total Scope 2 (location-based purchased electricity) 94,529 83,339 84,123 59,083 20,621 4,419 equivalent (FTE) employee (%)** -20% -4% -30% -39% Scope 2 (market-based purchased electricity) Waste sent to landfill from our main offices (%) 0% 33% 0% 0% Purchased district heating (market-based) 454 592 713 0 479 234 Waste recycled from all Sky sites (%) 65% 61% 77% 60% Purchased electricity (market-based) 41,236 41,392 42,388 13,247 27,234 1,908 Food waste recycled from our main offices (%) 100% – 100% 100% Total Scope 2 (market-based purchased electricity) 41,690 41,984 43,101 13,247 27,713 2,142 Water consumption (m3/FTE) 9–11m3 8 8 7 Total Scope 1 and Scope 2 (location-based purchased electricity) 123,853 112,742 114,084 83,353 23,791 6,941 *CO2 emissions baseline is 2008/09 **CO2 emissions baseline is 2011/12 Total Scope 1 and Scope 2 (market-based purchased electricity) 71,014 71,388 73,062 37,517 30,882 4,664 Joint Ventures contribution to total Scope 1 and 2 3 (location-based) CO2e (tCO2e) 566 530 49 649 n/a n/a Group renewable energy Scope 3 2016/17 2017/18 Upstream explanation On-site renewable energy (kWh) Total waste (tonnes) Purchased goods and services 475,929 587,316 Capital goods 86,278 18,602 5,025,178 5,787 Employee commuting 42,233 33,521 renewable energy (kWh) total waste (tonnes) Transportation and distribution 34,827 28,546 CCHP Osterley –4 Waste landfill 303 Business travel 12,645 8,653 PV cells 376,398 Waste recycled 3,958 Leased assets 3,598 2,182 Windturbines 125,407 Waste to energy 1,526 Biomass boilers 4,523,373 Total 5,787 Fuel and energy-related activities 22,884 19,055 Total 5,025,178 Waste generated in operations 333 533 Total Upstream 675,131 696,225 Notes to environment data: 1. 2017/18 data independently assured by Deloitte LLP. See previous reports have been applied. Our energy providers retain, on our behalf, the Downstream explanation for details on historical assurance. Guarantees of Origin (GOs) and Renewable Energy Guarantee of Origin 2. We measure our CO2e emissions according to the Greenhouse Gas (REGOs). In addition, we offset our total gross emissions, including Scope Use of sold products 1,298,284 1,335,091 Protocol, the global standard for reporting greenhouse gas emissions. 1, location-based Scope 2 and selected Scope 3 emissions, through the 3. Our total gross CO2e emissions include all Scope 1 and Scope 2 location- purchase of Voluntary Carbon Standard offsets. Transportation and distribution 811 484 based greenhouse gas emissions; and our market-based emissions are 4. Review underway following November 2016 fire incident. End-of-life treatment of sold products 1,185 1,813 those remaining after emissions factors from contractual instruments Total Downstream 1,300,280 1,337,388 Total Upstream and Downstream 1,975,410 1,961,074 Our total upstream and downstream indirect emissions (Scope 3) decreased this year as a result of energy efficiencies in our products and reduction in business travel. Historical data available at Sky.com/bigger-picture. Notes to environment data on following page. 26 Sky Bigger Picture Impact Report 2018 Sky Bigger Picture Impact Report 2018 27 Accessibility, people and community contribution data Find out more Accessibility Our provision of subtitles and audio description of on-screen TV content continues to exceed our regulated sky.com/biggerpicture quotas across all Sky channels. For our customers with a visual or hearing impairment, we audio described 35% of content and subtitled 90%. Ofcom regulated quota 2016/17 2017/18 Accessibility Subtitling 70% 85% 90% Audio description 10% 30% 35% All Accessibility data refers to UK and Ireland performance.
Diversity We maintained our gender diversity across the business this year and have a range of initiatives to improve this in the future. 2016/17 2017/18 Employee diversity Number % Number % Black, Asian and Minority Ethnic employees (UK&I only*) 3,203 10% 2,996 13% Disabled employees 1,562 5% 1,639 5%
2016/17 2017/18 Male Female Male Female Employee gender diversity Number % Number % Number % Number % Sky is proud to have been awarded: Sky are members of: Board of Directors 8 73% 3 27% 8 73% 3 27% Senior managers** 189 75% 62 25% 241 73% 88 27% All employees 19,751 63% 11,745 37% 19,128 62% 11,481 38% * Sky Italy and Sky Germany & Austria do not collect or hold data regarding the ethnicity of their employees. ** Based on headcount. Defined for the purposes of this report as those included in the Leadership Bonus Group which includes members of Sky’s executive group. For more information and methodology changes. Please see the Basis of Reporting on www.skygroup.sky/corporate/bigger-picture. Health and safety This year our accident rate decreased to 0.1 per 100,000 hours worked, the lowest rate in five years, reflecting our focus on creating the safest environment for our people. 2016/17 2017/18 UK and Ireland Health and Safety Incident rate per 100,000 hours worked* 0.10 0.13 Total number of reported incidents 43 54 * As defined by RIDDOR.
Community contribution This year in the UK and Ireland 7% of our employees gave to charity through payroll giving or matched funding and 4% of our people volunteered with Sky Academy Studios and Sky Ocean Rescue. We use the London Benchmarking Group model to analyse our community contribution, which this year across the Group was £21.9 million. 2016/17 2017/18 Unless otherwise stated, the information covered in Deloitte LLP have carried out independent limited this year’s report refers to all sites and operations for assurance procedures in accordance with International Cash £14,907,506 £16,808,972 Sky plc companies across the Group in the UK and Ireland, Standard on Assurance Engagements 3000 (ISAE 3000 Time £740,999 £421,236 Germany, Austria, and Italy for the 2017/18 financial year Revised) on selected key performance indicators defined . In-kind £1,378,595 £1,289,943 ended 30 June 2018. as material through our strategy, these are denoted by Management £2,792,005 £3,420,964 We’ve also produced a Global Reporting Initiative (GRI) You can find out more about the scope of our Total £19,819,105 £21,941,205 Content Index with this report. performance measures in our basis of reporting documentation and Deloitte’s full assurance statement.
Indicates 2016/17 external assurance by Deloitte LLP
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