ENVIRONMENT REPORT June 2016 CONTENTS 2 Key Achievements 11 Waste Reduction 4 Environment Policy & Goals 13 Engagement 6 Global Environmental Initiative 16 Solar Energy 8 Carbon Reduction 18 ECO:nomics Conference 1 KEY ACHIEVEMENTS We believe sustainability begins as a business proposition, but doesn’t end there. Our mission is to inform discussions and decisions – our core business provides a platform for informing people for the good of society. Our authoritative and trusted news and information content sets agendas, starts conversations and influences outcomes. We expose fraud, malfeasance and negligence, and we engage our readers about critical issues such as climate change with highly balanced, journalistic integrity. Our information products are directed at a broad, influential audience and provide accurate, fair and trustworthy information that helps business become more sustainable. The company’s achievements this year and in the recent past reflect investment and a corporate priority for protecting the environment and energy conservation. Highlights include: Reduction of carbon emissions globally by 48% in FY15 from baseline year FY06, and a 6% reduction from previous year. All 8 Dow Jones owned print centers are “Zero Waste” facilities for 2015. Solar power at our Princeton NJ campus has reduced carbon emissions by over 19,000 tons since its startup. 2 Five offices are now LEED and/or EnergyStar certified, representing 28% of leased office space, including our headquarters at 1211 Avenue of the Americas in New York City. At our Bronx Print Center, fluorescent bulbs were replaced with over 3,000 LED tube lights, and over 70 new outdoor LED lighting fixtures were added in the parking lots. With a payback of less than 2 years, this project reduces our carbon emissions by 126 tons/year and electricity costs by over $50,000 per year. 100% of all newsprint purchased for our newspapers is from paper mills certified by either FSC, SFI, PEFC, CSA, or equivalent. Our ninth annual ECO:nomics conference featured top CEOs and non-profit executives, government officials, entrepreneurs, and investors discussing the intersection of business and the environment, hosted by the editors of The Wall Street Journal. 3 ENVIRONMENTAL POLICY Integrity defines the culture at Dow Jones just as it does its journalism and business. Dow Jones strives to be a responsible consumer of energy and resources, and as a positive influence in the communities where we work and live. We affirm to all our employees, customers and the public that we will conduct our activities in an environmentally-sustainable manner while providing a safe and healthy workplace for our employees, in compliance with all governmental regulations and company policies. OUR GOALS In 2007, News Corp & Dow Jones set a target to be carbon neutral in 2010. Upon reaching this target, a new long-term vision was communicated with a set of short-terms goals and strategies to support that vision. Dow Jones believes that tackling climate change risk, and related issues, requires a long-term focus. Our new long-term vision, which is aligned with News Corps’ vision, is to: 1. Reduce our carbon footprint while growing our business, and minimize landfill waste within our business and communities 2. Engage our customers, employees, suppliers and partners on sustainability outcomes 3. Source our paper from paper mills using third-party certified sustainable forest management systems and/or recycled content, and power our operations with clean energy Our targets to meet these goals are: Reduce absolute carbon emissions 40% by 2016 (compared to 2006 baseline) Secure new office leases at facilities using renewable energy and/or are LEED, BREEAM or similar certified Achieve zero waste to landfill at our owned print centers by 2016 Continue to lead the discussion where business & the environment intersect via the ECO:nomics conference 4 Source 100% of newsprint from paper mills operating under third-party certified sustainable forest management systems by 2015 We have exceeded our 40% carbon reduction goal by achieving a 48% reduction in FY15, our owned print centers have been zero waste facilities since 2013, and 100% of the mills used have sustainable certifications, including our international contract print sites. To achieve its carbon mitigation goals, the company conducts energy audits, solicits ideas for operational improvements from local managers, and promotes best practices. Financial analysis, including calculation of ROIs, is completed for proposed projects. Recently, the company adopted new approaches to prioritizing and financing projects with high financial and environmental returns to further help reach its goals. The company has also improved internal tracking and communications to better respond to increased regulatory and customer requests for environmental data. To ensure regulatory compliance, a compliance calendar cloud-based software system is in place for our plants and major offices that tracks all federal, state, and local requirements. Tasks are assigned to responsible managers and coordinators at each site and documents are submitted to corporate EHS to verify compliance. 5 GLOBAL ENVIRONMENTAL INITIATIVE Prior to the company split from 21st Century Fox, News Corps’ Global Energy Initiative (GEI) managed all sustainability and energy efficiency programs at the corporate level. As the new News Corp, additional risks and opportunities were identified that directly impact their businesses, specifically around the use of forest commodities in its publishing businesses. As a result of the company split and revised sustainability strategy, the name of the corporate News Corp team was changed to the Global Environmental Initiative (GEI) to more accurately reflect its broader scope beyond energy and carbon. The GEI program is part of a broader “Corporate Citizenship” initiative at News Corp, encompassing both philanthropy and volunteerism in addition to environmental initiatives. Dow Jones’ Global Environmental Initiative has developed specific targets and strategies implemented by green teams across the globe. These teams have developed best practices to reduce energy usage and engaged employees, readers, advertisers and suppliers in the quest to reduce consumption and protect the environment. Day to day implementation and management of environmental programs within the company is handled by the VP of EHS & Sustainability, who also leads News Corp’s corporate GEI program. The Dow Jones GEI team is made up of leaders from HR, Real Estate/Facilities, Communications, IT and Operations. The GEI team communicates regularly with senior executives across the company about energy/carbon reduction projects and other aspects of the company’s environmental sustainability efforts, as well as the progress being made within the businesses, via regular summary reports and in-person meetings. The GEI team conducts regular meetings to discuss strategy, share successes and challenges, and invite external experts to share perspectives with the group. Internal websites are also available for employees to access environmental information. Climate change risks and opportunities are reviewed on an ongoing basis by the GEI team. The team is responsible for monitoring business impacts from climate change-related issues (including regulatory changes, energy costs, customer/consumer preferences, and other sources), identifying opportunities or risks with the help of cross functional teams, and reporting these to their respective senior management, as well as to the News Corp corporate GEI committee. 6 For printing and distribution operations that can be impacted from climate change and energy issues, there is a systematic evaluation process and dedicated personnel responsible to monitor, evaluate, and report potential risks and opportunities. The GEI team reviews risks and opportunities each year to determine priority areas and assigns resources accordingly. The specific threshold for evaluating materiality and the related criteria are variable depending on the potential magnitude of impact, likelihood, and timeframe presented, as well as the aspect of the business that could be impacted. However, from a general perspective the company reviews each of these components for each risk presented and determines the appropriate response. The GEI strategy – rooted in carbon measurement and mitigation of its operational impact – allows the company to take advantage of opportunities to lower costs of inputs, work with partners to reduce costs and generate new streams of revenue, attract and retain top talent, and build a reputation as a sustainability leader to support business objectives and make an impact on pressing environmental issues. Increasing regulatory and market pressures are also drivers of the company’s environmental strategy. The decentralized management structure and cross- divisional communication allows Dow Jones to leverage local expertise and experience and react quickly to changing dynamics. A key focus of the initiative has been on improving the company’s own internal operations and on being as transparent as possible about the goals, actions, and progress that the company is making. This sustainability program is part of Dow Jones’ identity and a differentiator in the marketplace. In addition, as a new generation of employees looks to work for companies that are addressing their environmental impacts, failure to do so could impact a company’s ability to recruit and retain