2017 Corporate Responsibility Report Table of Contents
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2017 Corporate Responsibility Report Table of Contents Letter from Our CEO About Omnicom Omnicom Corporate Responsibility Goals 2017 Omnicom Corporate Responsibility Highlights Community Sustainable Development Goal #4: Quality Education People Environment Governance About this Report UN Communication on Progress GRI Content Index Contact Information 2 These important actions confirm our support resource group dedicated to Omnicom’s LGBTQ+ of the United Nation’s Global Compact, to community and its allies, expand in India, China, which we became a signatory in 2016, and our the Philippines and the United Kingdom. commitment to Common Ground, an initiative of Omnicom and other leading global advertising Severe weather across a number of our networks to promote the UN Sustainable communities in 2017 reinforced the potential Development Goals. impacts of climate change and the importance of our efforts to reduce our energy and greenhouse As part of this effort, Omnicom continued its gas impacts. Through our continuing efforts to work toward Sustainable Development Goal 4: share office spaces fitted with energy-efficient to ensure inclusive and quality education for all lighting, equipment and systems, we reduced our and promote lifelong learning. In 2017, Omnicom year-over-year electricity use in 2017 by 5.5% and agencies across the world partnered with GHG emissions by 10%. Girl Effect and Theirworld, two leading NGO’s dedicated to empowering girls and boys through All of these efforts would not have been possible Dear Stakeholders, education. In addition, our agencies helped without the creativity, talent and passion of our employees. They are the foundation of our We are living through rapidly changing and advance education through pro bono work and success, in every way, and I thank each of them challenging times, as the world responds to volunteering for non-profit organizations around for their contributions. societal, technological and environmental the world. disruption. Omnicom’s commitment to corporate In 2017, we also continued to pursue gender Sincerely, responsibility is vital, now more than ever. and multicultural initiatives to ensure that our In 2017, we continued to build on the groundwork organization reflects the diverse backgrounds, we established in 2016, advancing our efforts experiences and perspectives of the global across our four focus areas: supporting our communities we serve. In 2017, 54% of U.S. John D. Wren communities, creating a dynamic and diverse officials and managers were women and 21% Chairman & Chief Executive Officer workforce, managing our environmental footprint were multicultural, both representing significant and ensuring a strong governance structure. We improvements from 2011, our benchmark also underlined our commitment, prior to the year. We also saw Omniwomen, Omnicom’s release of this report, with the publication of new professional women’s network, gain ground, with environmental and human rights policies and by chapters launching in Germany, UAE, France establishing group-wide corporate responsibility and Canada, and OPEN Pride, our employee goals. 3 Omnicom Group, Inc. is a strategic holding company and a leading global provider of advertising, marketing and corporate communications services. On a global, pan-regional and local basis, our networks and agencies provide a comprehensive range of services across the following disciplines: ADVERTISING STRATEGIC MEDIA PLANNING AND BUYING CUSTOMER RELATIONSHIP MANAGEMENT PUBLIC RELATIONS HEALTH CARE COMMUNICATIONS SERVICES 77,000+ 1500+ SPECIALISTS SERVING AGENCIES IN 100+ COUNTRIES 5,000+ BRANDS 2017 CLIENT MIX 2017 REVENUE Our Portfolio includes: Three global advertising agency networks: BBDO, DDB and TBWA; three of the world’s premier providers of media services: Hearts & Science, OMD and PHD, part of Omnicom Media Group. We also manage a global diversified group of agencies, Food and Beverage 13% under the DAS Group of Companies. Pharmaceuticals and Health Care 12% Consumer Products 10% WORLD Technology 9% USA FINANCIAL SUMMARY 46% Auto 10% 54% Financial Services 7% in millions 2017 2016 2015 2014 2013 Travel and Entertainment 6% Revenue $15,273.6 $15,416.9 $15,134.4 $15,317.8 $14,584.5 Retail 6% Operating Income $2,059.7 $2,008.9 $1,920.1 $1,944.1 $1,825.3 Telecommunications 5% Net Income $1,088.4 $1,148.6 $1,093.9 $1,104.0 $991.1 Other 22% 4 OMNICOM CORPORATE RESPONSIBILITY GOALS People • By January 1, 2019, Omnicom will offer sexual harassment training to 100% of its full-time, regular employees in the United States and require such employees to be trained within 3 months of their hire date and every 2 years thereafter. Environment • Reduce energy use 20% per person globally by 2023, using a 2015 baseline. • Increase use of electricity from renewable sources globally to 20% by 2023. Governance • Develop Supplier Code of Conduct by 2020. • By January 1, 2020, Omnicom will offer business ethics and/or anti-bribery training to 100% of its full-time, regular employees worldwide and require such employees to be trained within 3 months of their hire date and every 2 years thereafter. 5 2017 Omnicom Corporate Responsibility Highlights In 2017, we made progress across the four areas on which we focus: Community, People, Environment and Governance. We describe these initiatives in this report and on our website. • Supported SDG 4 – ensure inclusive and equitable quality education – through partnerships with Common Community Ground and pro bono support of Girl Effect and Theirworld • Strengthened our communities around the world through thousands of agency volunteer initiatives • Provided powerful pro bono client support to non-profits in service of critical social and environmental causes • Named as one of the best employers in the United States by Forbes Magazine for the third straight year, ranking People 128 out of the top 500 largest employers in the nation • 54% of U.S. officials and managers are women; 21% multicultural • Launched Omniwomen chapters in Germany, UAE, France and Canada, with plans in place for another half-dozen chapters by mid-2018 • Extended OPEN Pride’s global reach, with new chapters in India, China, the Philippines and the United Kingdom in 2017, and Australia and the U.S. in early 2018 • Introduced new Environmental Policy, outlining our approach to minimize our impact Environment • Established goals in energy use reduction and increase in the use of electricity from renewable energy sources • Reduced year-over-year electricity use by 5.5% and GHG emissions by 10% • Continued diverse representation on our Board, with 10 independent directors (of 11 total), including 6 women Governance and 4 African Americans • Welcomed two new independent directors, Gracia C. Martore and Ronnie S. Hawkins • Published a Human Rights Policy • Introduced two goals to strengthen our supply chain engagement and formalize business ethics training 6 COMMUNITY Around the world, Omnicom agencies, and the people who work at them, contribute time, passion and creativity to champion urgent causes that impact the communities where we work and live. Strengthening Our Approach Industry Collaboration to We know that advertising is a persuasive force Drive Global Change that can change individual minds to create In 2016, Common Ground was launched, good for many. We are committed to applying establishing an unprecedented commitment by our creativity to support our communities and the marketing and communications industry to clients by investing in: put aside their usual rivalry in order to support • Industry-wide initiatives to drive the United Nations Sustainable Development global change Goals (SDGs). Through Common Ground, the • Agency-driven pro bono and volunteer CEOs of Omnicom, WPP, Publicis, Dentsu, programs Havas and IPG pledged to support the 17 • Client-focused campaigns that address SDGs, recognizing that the global issues the poverty, human rights and many other UN has identified transcend commercial rivalry social equity and environmental issues and require broad collaboration to serve a SUSTAINABLE wider common interest. Each holding company DEVELOPMENT GOAL 4 While our efforts support causes important has committed to tackling one area across to local communities around the world, we’ve their organization and through client work. Ensure inclusive and equitable quality chosen Education as a primary focus of our Omnicom’s focus on Education is reflected education and promote lifelong learning global work. We describe our efforts in this in our work with non-profits Girl Effect and opportunities for all. section. Theirworld, and through the work of our agencies described in the profiles presented in this chapter. 8 Advancing the Education Agenda Theirworld is dedicated to putting education Through Partnerships at the top of the global agenda. Theirworld is an innovative charity that helps children to Omnicom, through the donation of time and fulfil their potential. Through research, pilot expertise, is collaborating with our signature projects and campaigning, Theirworld tests partners – Girl Effect and Theirworld – to effect and shapes new ideas to help give children the change and expand access to education. best possible start in life. To tackle the global Girl Effect creates youth brands and mobile education crisis, it is intent on creating the platforms to empower girls to change their public groundswell needed to close the gaps lives. Education is a key component in its in global education. With Omnicom’s mission