WPP : makes net zero pledge for entire $60bn supply chain
April 22, 2021 at 05:11 am EDT
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WPP has pledged to reach net zero carbon emissions across its entire supply chain by the end of the decade in what it said was the most ambitious approach in the ad industry.
The holding group said its own operations will be net zero by 2025, with all electricity to be renewably-sourced.
Read more: Leading investors call on banks to set tougher net zero targets
Across its supply chain of media outlets, with whom it spends $60bn (£43bn) each year, a target has been set for 2030.
WPP said the supply chain accounted for the overwhelming majority of its emissions, with the production of advertising content and placement of campaigns in media channels such as TV the two largest sources.
The FTSE-listed giant, which owns agencies including Ogilvy, Grey and Group M, said it was the first in the ad industry to include media in its net zero commitment.
“WPP is the world’s largest buyer of advertising space, managing more than $60 billion in media spend on behalf of our clients, and the world’s largest producer of advertising content. So we have the opportunity to make a real difference,” said chief executive Mark Read.
“By including emissions from the placement of advertising in our net zero commitment — a first for our industry — we aim to raise the bar for the whole sector.”
WPP said it aims to work with media partners to develop industry-wide standards for measuring and eliminating the carbon emitted from placing ads in the media.
Read more: Financial services leaders team up to launch net zero alliance
A number of major corporations have laid out net zero plans as part of a wider environmental push.
More than 160 of the world’s biggest financial services firms yesterday announced the launch of the Glasgow Financial Alliance for Net Zero, a new group aimed at coordinating net zero initiatives across the industry.
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WPP plc is one of the world's largest communication groups. Net sales break down by activity as follows:
- advertising and marketing services (77.5%): operating through GroupM, AKQA, Ogilvy, Wunderman Thompson, VMLY&R and Hogarth. The group also develops an advertising space purchase activity and offers services in institutional and financial communications, healthcare communications, relationship marketing, etc.;
- public relations (8.5%): Burson Cohn & Wolfe, Hill+Knowlton Strategies and FGS Global;
- specialized communication services (6.7%): Landor & Fitch and Design Bridge and Partners.
Net sales are distributed geographically as follows: the United Kingdom (13.9%), Continental and Western Europe (19.9%), North America (38.5%) and Asia/Pacific/Latin America/Africa/Middle East/Central and Eastern Europe (27.7%).