Business value of sustainability for media organisations

Tangible and intangible benefits from integrating sustainable practices into their operations have
long been on the agenda at many media organisations. But, for decades, their environmental, social
and governance activities have been disconnected and not working in tandem with core strategy.
Organisational leadership still takes a fragmented, reactive approach – often launching ad hoc off-
the-cuff initiatives to increase “green” credentials, mostly to comply with regulations, consumer
sentiment or to deal with emergencies – rather than treating sustainability as an issue with a direct
impact on business results¹.

That’s inadequate in the current business landscape. Sustainability is no longer just a buzzword; it’s
a critical component of modern business strategy. Consumer attitudes towards the environment
have been rapidly changing over the past decade – even if voices challenging this trend don’t ebb
away and possibly even become louder in some societies – bringing the desire to be sustainable to
an all-time high. With good reason, people are becoming increasingly conscious of their role in
protecting the planet. It’s not just consumer attitudes changing – legislation is evolving too. With
the aim of protecting consumers from misleading practices and helping them make better2
purchasing choices, the European Union (EU) has banned greenwashing and making generic
environmental claims which lack proof.
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https://www.europarl.europa.eu/topics/en/article/20240111STO16722/stopping-greenwashing-
how-the-eu-regulates-green-claims
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Becoming a net zero business is highly attractive to investors and shareholders but also to current
and prospective employees, customers, regulators and the wider public.
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Meaningful carbon emissions reduction is achievable today. Open access to emission data is the
common and obvious first step towards becoming a more sustainable industry. The latest State of
Sustainable Advertising Report presents the average grams of carbon emissions per 1,000
impressions (gCO2PM) by country across three digital channels: display, app, and streaming. Wide
ranges of gCO2PM are common, with some countries averaging in the low to mid 200s and others as
high as 700+ for selected channels (Web Display, Streaming Video, App Display)¹⁵.
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Where such challenges arise, opportunities also lie: Cognizant estimates that in EU countries,
sustainability spending in the Media and Telecom sectors will increase by 3.5 times between 2018
and 2030 and is expected to see a year-over-year growth of over 12% between 2025 and 2030. The
opportunity going into 2025 is clear: meaningful carbon reduction is achievable today by taking
initial steps and begin leveraging available data and tools to simplify supply paths, complexity and
selecting the right partners, service integrators and vendors³.

The moral and financial imperative of sustainability

The sustainability stage is set: it has captured the hearts, minds and wallets of most executives, and
now organisations are breaking out of their comfort zones to collaborate with partners, service
integrators, suppliers and even competitors to advance the sustainability agenda. Within the media
industry, the estimated global carbon dioxide emissions in Video Streaming alone contribute to 2%
(the figure is based on an allocation method used by the source) of total GHG emissions¹⁰ and a
single box office movie, with a production budget of US $70M, will require 20M trees annually to
absorb the humongous amount of CO2 emissions released¹. In an era when transparency,
accountability and responsibility not only matter but are of paramount importance, these industries
are rapidly striving to align their business value with the sustainability agenda. The number of firms
expecting a positive financial impact from improving environmental sustainability will double in the
next two years³. We have identified this set of advantages from a higher level of sustainability:

Enhancing brand reputation – today’s consumers, especially younger generations, are
increasingly aware of and concerned about and value sustainability. This translates to a
preference for brands that align with their values. In a crowded market, sustainability
practices can set a media organisation apart from its competition. Advertisers and
consumers seek platforms that reflect their own commitment to sustainability. Increasingly,
skilled hires often prioritise companies which implement sustainable practises. Employees
are more likely to stay with a company that aligns with their values and demonstrates a3commitment to making a positive impact on the environment.

Operational efficiencies – Implementing energy-efficient technologies and reducing waste
can lead to significant cost savings. Sustainable practices often involve better resource
management, which can improve overall operational efficiency. Implementing sustainability
initiatives often leads to operational efficiencies, such as energy usage reduction, water
conservation, and waste management improvements. These efficiencies can significantly
reduce costs over time, positively impacting the company’s reputation.

Revenue opportunities – Sustainability attracts high-value advertisers who are often willing
to pay a premium for products and services that are sustainably produced, thus allowing
media organisations to command premium rates. Advertisers are willing to pay more to be
associated with media that emphasises eco-friendly practices, driving up ad revenue.
Sustainability can open new markets and revenue streams such as eco-friendly advertising
partnerships and use of sustainable and re-usable methods, material and frameworks within
established partnerships.

Trust and loyalty – Consistent and genuine sustainability efforts build trust with audiences
and stakeholders. This trust translates into long-term loyalty and a positive brand image.
Employees are increasingly motivated by their company’s commitment to sustainability.
This leads to higher job satisfaction, better retention rates, and increased productivity.

Risk management – Sustainability practices help companies anticipate and react to
environmental, social, and regulatory risks. By addressing these risks proactively, companies
can avoid potential fines, legal battles, and reputational damage.

Media organisations that prioritise and can demonstrate a commitment to sustainability practices
can attract this growing demographic and build stronger lasting relationships with their audience,
leading to higher engagement and loyalty. Furthermore, by showcasing robust sustainability
practices, media organisations can attract premium partnerships. These advertisers are willing to
invest more in platforms that enhance their own sustainability credentials.

Approaching sustainability in media

From a Cognizant survey of 3,000 executives across a range of industries we discovered
sustainability is nearly always at the top of the CEO’s agenda, a formal strategy is typically in place in
the organisation, and senior management are embedding it in programmes and business practices.
Furthermore, a large share of executives reaffirmed that they are pursuing value creating activities
related to sustainability and integrating the organisational value drivers – mission and values,
systems and processes, internal and external leadership, and organisation operating model – that
support such initiatives⁴.
Make no mistake, capturing sustainability’s full value potential is a complicated journey – a company4
must first baseline its performance on sustainability issues and then formalise a portfolio of
initiatives to create value within those elements covering internal operations, supply chain as well as
products and services – figure 1.

Are productions the big culprit?

Data from Tentpole Productions showed the average carbon footprint of 3,370 metric tons – or
about 33 metric tons per shooting day. Large films tend to have a carbon footprint of over 1,000
metric tons, while medium and small films of about 750 and 400 metric tons respectively¹³.