Corporate Responsibility Report 2010/2011 Corporate Responsibility Report 2010/2011 Advertising Media Investment Management Consumer Insight Public Relations & Public Affairs Branding & Identity Healthcare Communications Direct, Digital, Promotion & Relationship Marketing Specialist Communications www.wpp.com Contents About this report Introduction The impact of our work 02 Introduction 21 Sustainability in marketing 03 Highlights from 2010 22 Perspectives his report describes WPP’s corporate Parent company centres 04 From our CEO 24 Sustainability in marketing – case studies responsibility activities in the calendar 06 Who we are 24 Closing the sustainability gap T year 2010 and the first quarter of 2011. 08 Our companies & associates 24 JWT London: Shell It is our ninth report. 25 G2 Berlin: Volkswagen Data relates to the calendar year 2010. Most CR WPP Ireland WPP Asia Pacific 26 Y&R Istanbul: Arcelik data is collected quarterly through our financial 6 Ely Place Yebisu Garden Place 27 Added Value London: Sainsbury’s reporting system. This includes data on energy and Dublin 2, Ireland Tower, 30/F CR at WPP Tel +353 1669 0333 4-20-3 Ebisu CO from our buildings, air travel, social investment, 27 Hill & Knowlton London: P&G 2 Fax +353 1669 0334 Shibuya-ku 11 CR and our business strategy 28 Social marketing employment infringements, employee diversity, Tokyo 150-6030 12 How we manage risk and opportunity 28 Social marketing – case studies training and wellbeing, recycling and paper use. WPP New York Tel +813 3280 9506 14 Corporate Responsibility Committee 28 JWT Mexico City: Cruz Roja Mexicana The data covers 104,052 employees from wholly- 100 Park Avenue Fax +852 2280 5412 14 Stakeholder engagement (Red Cross) owned WPP companies. New York NY 10017 Tel +1 (212) 632 2200 WPP China 14 Awards and rankings 29 Y&R Cape Town: Gun Free South Africa We identify marketing infringements involving Fax +1 (212) 632 2222 31/F The Center 15 Monitoring performance 30 Cause-related marketing WPP companies from public reports by regulatory 989 Changle Road 15 Business ethics 30 Cause-related marketing – case studies authorities and directly from WPP businesses WPP London Shanghai 16 Corporate governance 30 Mindshare Chicago: Radio Shack through our financial reporting system. 27 Farm Street Tel +86 21 2405 1649 16 Tax policy and LIVESTRONG Foundation Case studies for this report are collected through London W1J 5RJ Fax +86 21 2405 1600 Tel +44 (0)20 7408 2204 16 Lobbying and political contributions 31 O&M and Mindshare New York: an annual survey of our companies. Each WPP Fax +44 (0)20 7493 6819 17 Managing CR in our supply chain American Express company has nominated a CR representative who is 18 Code of Conduct responsible for completing this survey of CR activity. 19 CR Policy Completed surveys are signed off by the company Marketing ethics CEO before submission to WPP. For further information about WPP’s CR 33 Our standards activities, please contact Vanessa Edwards, head 34 Ethical decision-making of Corporate Responsibility: [email protected]. 34 Representative infringements in 2010 35 Compliance with marketing codes 35 Privacy 37 Public affairs About the images This report has been printed on Revive 50:50 White Silk paper. This paper is made from 50% pre- and post-consumer waste and 50% virgin wood fibre, independently certified in In recent years, WPP’s Corporate Responsibility Reports accordance with the FSC (Forest Stewardship Council). have drawn inspiration from markets important to It is manufactured at a mill that is certified to ISO14001 our clients and our companies. This year we take our environmental management standards. The pulp is bleached visual cue from Eastern Europe (one of the faster- using an elemental chlorine free (ECF) process. The inks used growing regions of the world) and feature the vibrant are all vegetable oil based. Printed at St Ives Westerham Press work of the acclaimed Czech artist, Kveta Pacovská. Ltd, ISO9001, ISO14001, FSC certified and CarbonNeutral®. This Corporate Responsibility Report, together Throughout this report this icon denotes with our Annual Report, trading statements, that case study campaign footage can news releases, presentations, and previous CR be viewed in the CR Report online at Written and produced by WPP Reports, are available online at wpp.com wpp.com/cr Consultancy by Context Designed by Addison www.addison.co.uk ©WPP 2011 Employment Social investment 39 Diversity and inclusion 63 Performance 42 Ethnicity and age diversity 63 WPP, parent company activities 42 Employee infringements 64 Volunteering 43 Development and training 44 Case study: A focus on young people 45 Remuneration and share ownership Pro bono showcase 45 Communication 46 Health and wellbeing 66 Pro bono showcase – case studies 47 Awards 67 Forward London: StreetSmart 68 Grey Hong Kong: Green Sense 69 Wunderman Sydney: Earth Hour, WWF Environment 70 Y&R Paris: Surfrider Foundation Europe 72 BADJAR Ogilvy Melbourne: The Song Room 49 Energy and climate change 73 Grey Amsterdam: Pink Ribbon magazine 49 Our climate strategy 74 The Partners London: FIA Foundation 50 Our climate target 75 O&M Los Angeles: Generation Rwanda 50 Our carbon footprint in 2010 76 JWT Bangkok: FREELAND Foundation 51 WPP’s carbon accounts (2006-2010) 77 Y&R Chicago: National Domestic 52 Office energy efficiency Violence Hotline 53 Green buildings – case studies 54 Sustainable IT 54 Travel and videoconferencing Data file 55 Buying renewable electricity 56 Offsetting CO2 emissions 78 Performance and plans 56 Waste and recycling 80 Key data 57 Water use 59 Water conservation – case studies 61 Sustainable sourcing About this report 61 Pro bono work Inside back cover Data collection Inside back cover About the images Inside back cover Parent company centres WPP CORPORATE RESPONSIBILITY REPORT 2010/2011 1 Introduction PP’s ninth corporate responsibility report showcases our approach to Wsocial, ethical and environmental issues and reports progress made across the Group during 2010. Throughout the report we include thoughts and insights on corporate responsibility from our companies. We have provided information on the Global Reporting Initiative (GRI) indicators covered in our reporting. A detailed GRI index is also available in the online version of our report*. We don’t think reporting should be a one- sided conversation. We welcome your feedback – whether positive or negative. You can contact us at: [email protected] * wpp.com/cr 2 WPP CORPORATE RESPONSIBILITY REPORT 2010/2011 Introduction Highlights from 2010 48% 23% women in senior management reduction in CO2 emissions per head since 2006 £48.9m £14.3m invested in training and development donated to charity, equivalent to 1.7% of pre-tax profits 97,714 11,000hours of our people have received WPP share awards of meetings held via our videoconferencing network through our Worldwide Ownership Plan by our companies in 2010 2,100 16% of our senior client leaders have participated of our electricity is purchased from renewable sources in our Maestro training program WPP CORPORATE RESPONSIBILITY REPORT 2010/2011 3 Introduction From our CEO The self-preservation society erhaps the greatest single It is undeniable that the unsustainable use of our planet to extract resources and deposit waste has the problem for climate change increasing potential to do great harm to the global and other sustainability economy and society. But the slow nature of these P changes means that any sense of urgency is missing. issues – such as biodiversity loss Sustainability issues are rarely at the top of the and water scarcity – is that the international political agenda. Business is often characterised as being motivated time is never quite right to face only by short-term profit – but in truth, major up to them. Sustainability is a corporations are doing much more than governments in providing leadership and innovation in the field slow-motion crisis. More pressing of sustainability; not out of altruism, but because issues always intervene. the world’s largest companies, owners of the most valuable brands, have an intense interest in long-term sustainable growth. Healthy, prosperous societies create demand for their products and are capable of providing the raw materials they need. Long- established companies have learned the need to plan for the long-term with rather more success than many national governments – which have, perhaps, no more than a few years in office in which to exercise their power. But a big question mark stills hangs over the mindset of the consumer. Our research shows that people are becoming ever more tired of the environmentalists’ messages: drive less, holiday at home, don’t eat meat, keep a smaller dog. They feel that any personal sacrifice would make a wholly insignificant difference. Climate change is a problem so inconceivably vast that it needs some ill-defined ‘Them’ to fix it. Since the economic downturn, green issues are slipping still further down the order of priorities. Marketing strategists now need to think hard about how to re-engage the consumer. Raw economics should provide part of the solution. Commodity prices for all basic materials, from foods to industrial raw materials to fuel, rose sharply as global GDP increased prior to 2009 and have resumed 4 WPP CORPORATE RESPONSIBILITY REPORT 2010/2011 Introduction the upward trend since the bottom of the recession. particular expertise and sensitivities. The problems This suggests that we are reaching limits to the world’s are real and complex and demand real solutions: capacity to meet society’s ever-rising consumption, ‘greenwashing’ is counter-productive and we especially the increasing needs of the BRICs countries. invariably counsel against it. It is proving increasingly difficult to grow more food This report also outlines our continuing work to or extract more oil because agricultural land and fossil ensure that we run our own operations responsibly.