Innovation With Purpose
Sustainability Report FY21
INNOVATION WITH PURPOSE | S ustainability Report FY21
Contents
Part 1 Welcome
1.1
Introduction
04 04 06 08
We have a purpose We embrace innovation 1.2 Who we are/ What we do 1.3 A year of acquisition and expansion 1.4 Management philosophy Environment, Social and Governance
10 12 14
2.1 The UN Sustainable Development Goals 2.2 Priority goals 2.3 Commitments and progress against targets SDG #8 Decent work and economic growth SDG #10 Reduced inequalities Part 2 People and Planet SDG #12 Responsible consumption and production SDG #13 Climate action
16 18
20 20 24 28 32 34 35 35 36 40 40 41
2.4 Carbon footprint
Carbon reduction plan CDP 2.5 Support for other SDGs 2.6 Global Crisis - COVID 19 response Prioritizing safety in the workplace
Overcoming crisis and recovering the community
Part 3 Headlines and Highlights
3.1 Sunday Times’ Sustainable Innovation Report 3.2 The industry’s first sustainability assessment 3.3 HH Global awarded pioneer status 3.4 HH Global featured in Deloitte’s Goal13 Impact Platform Report 3.5 World Sustainability Awards finalists 2021 3.6 HH Global meets Prince Charles as part of the Sustainable Markets Initiative 3.7 HH Global’s sustainability principles recognized by POPAI 3.8 HH Global sponsors industry research
42 42 43 43
44 44
45
45
Part 4 Sharing the Journey
4.1 Towards targets – progress summaries 4.2 GRI standard disclosures 4.3 Contact details
46 48 48
www.hhglobal.com
INNOVATION WITH PURPOSE | Sustainability Report FY21
We have a purpose
4
WELCOME | Mike Perez
Welcome People and Planet
Headlines and Highlights
Sharing the Journey
Mike Perez Group CEO
I am pleased to present the third edition of HH Global’s annual Innovation with Purpose Sustainability Report, which provides an update on progress towards our ambitious targets. Completing the acquisitions of InnerWorkings, Adare International, and Noosh provides an exciting and unprecedented platform for further growth. This huge increase in scope and scale enables us to leverage the category expertise of over 4,000 subject matter experts operating in almost 70 markets, providing the opportunity to drive better business and more sustainable outcomes for the clients we serve the world over. Our previous commitments to sustainability were reiterated by the publishing of additional environmental, social and governance (ESG) targets in August 2021. Aligned with the United Nations Sustainable Development Goals (SDGs), these targets were created by our regional, cross-functional sustainability steering groups.
Created by the business and for the business, this latest statement of intent clearly defines what our organization stands for and our ambitions for the changes that can be made in the near term. Embedding awareness and understanding of sustainability into our culture and every facet of our service is fundamental to our sustained growth. We continue to invest in our sustainability and ESG structure and strategy, with dedicated teams now in place across all four regions. With a focus on developing a sustainable company that will serve many future generations, I am proud of the progress made this year and remain fully committed to bringing innovative products and services to our clients based on our established values. On behalf of every member of the HH Global team, I thank you for your continued interest and support.
Thank you for taking the time to read our report, which we hope provides an insight into the incredible progress achieved by our teams this year. “ ”
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INNOVATION WITH PURPOSE | Sustainability Report FY21
Kevin Dunckley Chief Sustainability Officer
I believe that business has a critical role to play in driving the change needed in this, the Decade of Action. Operating between an amazing global client base and an extensive supply chain, HH Global is in a unique position to play a significant part. We have an opportunity to lead the way, acting as a conduit for responsible business across our industry, and creating a ripple effect for good wherever we engage. Having championed our sustainability strategy since 2016, I have witnessed first-hand an increasing sense of urgency surrounding our clients’ need to improve conduct across both the environmental and social facets of sustainability.
I am immensely proud to oversee the evolution of a growing and dedicated team, who are implementing meaningful sustainable change within our own organization, as well as working to influence and improve the impact of our valued clients and supply chain. In addition, we have embedded our sustainability program, Innovation with Purpose, into strategic engagements with some of the leading brands in our client portfolio. Partnership and collaboration remain key themes as we work to reduce our collective climate impacts and increase diversity and opportunity.
This year included some significant milestones for the business:
We established and published our full suite of sustainability targets, fully aligned to the UN Sustainable Development Goals We retained and improved our EcoVadis Gold rating
We committed to setting a science based target
We committed to The Climate Pledge, one of the first signatories alongside one hundred other leading businesses
6 WELCOME | Kevin Dunckley I am excited about our roadmap for the year ahead. We are ready to combine technology and data to launch innovation for our clients that will enable us to understand and address impact at scale. I hope you enjoy the report and welcome any questions or comments at sustainability@hhglobal.com “ ”
Welcome People and Planet
Headlines and Highlights
Sharing the Journey
We embrace innovation
www.hhglobal.com
INNOVATION WITH PURPOSE | Sustainability Report FY21
Who we are We are the leader in global tech-enabled creative production and procurement. Through our unrivaled platform, sustainable innovation, and intelligent partnerships, we help the world’s leading brands achieve big impact for their big ideas.
+4k people
1991 established
+$2B spend under management
8
WELCOME | Who we are / What we do
Welcome People and Planet
Headlines and Highlights
Sharing the Journey
What we do
In addition to long-standing contractual relationships with some of the largest, most exciting, and most progressive global brands, FY21 has brought the welcome addition of new
clients across an expanding service offering that includes creative design, production, and retail environments:
SOLUTIONS Creative + Digital
SOLUTIONS Technology
SERVICE LINES
SERVICE LINES
• Data + insights
• Self-service procurement
• Strategic creative
• E-store
• Content development
• Digital asset management
• Content production
• Dynamic digital adaptation
• Store profiling
• Reporting + analytics
SOLUTIONS Procurement
SOLUTIONS Logistics
SERVICE LINES
SERVICE LINES
• Supply chain optimization
• Warehousing + distribution
• Sustainable marketing procurement
• Freight optimization
• Tail spend management
• Assembly + installation
• Co-packing
INDUSTRY SECTORS
Financial
FMCG Retail
Life sciences Technology Beverages
Non-profit + Public sector
Luxury
www.hhglobal.com
INNOVATION WITH PURPOSE | Sustainability Report FY21
A year of acquisition and expansion
Office openings
The completed acquisitions of InnerWorkings in October 2020, and Adare International in August 2021 increased our geographical footprint and breadth of services, creating an unrivaled offering for new and existing clients. The combined businesses provide a unique opportunity to consolidate and leverage spend, increase efficiency, and promote leading practice in every category. Meanwhile, the ability to further accelerate service reach through unrestricted technology deployment was achieved in September 2021, through the acquisition of a best-in-class global solution provider, Noosh. With more than $1.2B in marketing spend sourced and managed via Noosh’s proprietary technology, this addition enables the introduction of self-serve and hybrid solutions for clients, as well as extending existing relationships into new categories and regions. Recent acquisitions
HH Global has further established its foothold in the Southeast Asia (SEA) region with the opening of offices in Vietnam, Thailand, and the Philippines. This expansion provides new and existing clients with increased flexibility and options for their marketing procurement strategies. These three markets represent areas of steady growth, stability and diversity which provides emerging opportunities for both domestic and international brands. The new offices offer the full range of services to local clients, as well as providing additional resources to the Central Sourcing Office, which connects global clients to international sourcing options. These strategic developments provide an unrivaled opportunity to influence the conduct of a globally scaled supply chain, and the behaviors of the clients served. HH Global recognizes and embraces the complexity and sheer scale of governing a sustainability and ESG strategy of this nature. Ongoing investment in resource, education, and systems is enabling the organization to leverage and amplify leading practice and market presence to the benefit of all stakeholders and interested parties.
10 WELCOME | A year of acquisition and expansion
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INNOVATION WITH PURPOSE | Sustainability Report FY21
HH Global has a vision: To be the world’s most impactful partner to brands seeking stronger, more sustainable, growth.
Pursue excellence relentlessly
Act with integrity to earn trust
Have passion and pride
To maintain position as a market leading execution partner, it is crucial to continually strive to enhance and develop all aspects of performance.
Client partnerships are formed on a base of mutual trust and confidence. To build and maintain this, employees are expected to act with integrity in everything they do.
HH Global is passionate about what it does, and takes pride in what the business has achieved. The passion and pride demonstrated by employees is rewarded with career opportunities and ongoing development.
12 WELCOME | Management philosophy
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Management philosophy HH Global has a vision to be the world’s most innovative and sustainable marketing execution partner. To this end, the company leverages proprietary technology and deep category expertise to provide leading products and services to clients the world over, while remaining committed to refining a model for marketing execution that is genuinely sustainable.
The organization has adopted the UN Sustainable Development Goals framework as the foundation for its detailed action plan, and to inform the HH Global Codes of Conduct provided to guide and inform all employees and suppliers.
To drive continued and sustainable growth, HH Global is guided by the following core values, which are fundamental to the way its employees conduct business:
Feel empowered and be accountable
Innovate and take the lead
Love our clients
One of the keys to HH Global’s success is the way employees actively take responsibility for driving the business forward. A culture of trust and empowerment enables employees to make a difference every day within their core roles and in the wider business.
HH Global doesn’t simply accept the status quo. Part of our pursuit of excellence is to persistently seek to provide alternative solutions to clients through innovative solutions.
Our partnerships with clients are the key to our mutual success. These partnerships are built on going the extra mile and delivering service excellence every time. We don’t simply like our clients, we love them!
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INNOVATION WITH PURPOSE | Sustainability Report FY21
Environment, Social and Governance Sustainability and ESG commitments and targets are governed by the Chief Sustainability Officer, a member of the Group Management Board. They are supported by four regional steering groups which comprise cross-functional representation from the senior leadership team. Their responsibility is to oversee the environmental and social targets set for the business, as well as the strategies and initiatives enabling their achievement.
In addition, four regional taskforces have been created, made up of representatives from all levels and areas of the business. Their role is to support positive progress by raising awareness, generating key initiatives, and promoting examples of best practice both internally and externally at a local level.
Certifications and industry affiliations include:
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WELCOME | Management philosophy
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INNOVATION WITH PURPOSE | Sustainability Report FY21
The United Nations Sustainable Development Goals In 2015, 193 world leaders agreed 17 Sustainable Development Goals, otherwise known as the Global Goals or SDGs. These goals have the power to create a better world by 2030, by ending poverty, fighting inequality and addressing the urgency of climate change. Described as the world’s ‘to-do’ list, it is now up to all of us, governments, businesses, civil society and the general public to get behind the goals and work together to build a better future for everyone. HH Global is committed to supporting these goals through its sustainability strategy, Innovation with Purpose. This award- winning sustainability program fosters collaboration and promotes environmentally responsible business practices, resulting in both economic and sustainable efficiencies for clients. The Sustainable Development Goals provide focus on what matters. They highlight how the decisions taken and activities instigated by HH Global contribute to a bigger picture. They act as an enabler for a more expansive conversation on sustainable development while serving as a reminder that achieving ambitious targets requires a coordinated approach that engages all stakeholders: clients, supply chain partners, investors, and colleagues.
16 PEOPLE AND PLANET | The United Nations Sustainable Development Goals
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INNOVATION WITH PURPOSE | Sustainability Report FY21
Priority goals
HH Global has evaluated the UN SDGs to identify those that are most relevant to its business activities and associated stakeholders, prioritizing a subset of four on which to focus its efforts. As many SDGs are interlinked, through championing and embedding sustainable practices specific to marketing execution, the positive outcomes will contribute to several additional goals. Each prioritized SDG is backed by a clear commitment and associated near term targets, as defined by the sustainability steering group. These priority goals, commitments, and targets were defined, approved, and published in August 2021.
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PEOPLE AND PLANET | Priority goals
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INNOVATION WITH PURPOSE | Sustainability Report FY21
HH Global is committed to ensuring it is a and that our suppliers provide decent wo their employees with a fair wage and stro Commitments and progres
Targets
Progre
Workstream embed in HR HH Global S acknowledg
HH Global employees will be paid a living wage. 100% of tier 1 (direct) suppliers* will be required to confirm a living wage policy by 2025.
HH Global S acknowledg HH Global su ESG charac
100% of tier 1 (direct) suppliers* to align with HH Global’s clearly defined environmental and social standards or have appropriate corrective action plans in place by 2025.
100% of tier 1 (direct) suppliers* to receive information and guidance on the Sustainable Development Goals with 30% demonstrating their support by 2025.
Regional tria
An additiona expansive su
*Suppliers that make up 95% of HH Global spend
20 20 PEOPLE AND PLANET | Decent work and economic growth
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a great place to work, orking conditions for ong employee rights. ss against targets
FY21
ess
ms underway in each region to standardize definitions and R processes.
On Track
Supplier Code of Conduct updated accordingly, with gment of adherence a prerequisite to trading.
Supplier Code of Conduct updated accordingly, with gment of adherence a prerequisite to trading. upplier profiling to be expanded to capture additional cteristics.
On Track
als of the Support the Goals program completed in 2021.
On Track
al 100 key suppliers are planned for H2 2022 as part of a more upplier engagement program.
www.hhglobal.com
INNOVATION WITH PURPOSE | Sustainability Report FY21
Actions
HH Global partners with Support the Goals to educate suppliers
Supporting Global Goals in the supply chain
In 2021 HH Global partnered with Support the Goals, an initiative that recognizes the journeys of those businesses that are supporting the UN Sustainable Development Goals. In addition to providing recognition for the good work being done, Support the Goals provide resources and support to educate businesses about how the 17 UN Global Goals can help them tackle poverty, inequality, and climate change. The initial pilot extended to a selection of sixty HH Global suppliers, located across ten countries and four continents: US, Brazil, UK, Spain, Ireland, Belgium, Germany, Austria, Australia and New Zealand. HH Global can track their suppliers’ support for the SDGs using an interactive dashboard, with filters to view suppliers by rating, industry, geography, and goals supported. Following this successful pilot, an additional one hundred tier one suppliers will be evaluated by Support the Goals in H2 2022 as part of a more expansive supplier engagement initiative.
HH Global has always set very high standards for conducting business in a socially and environmentally responsible manner, with sound business ethics, and in compliance with all applicable laws and regulations. HH Global is committed to ensuring that working conditions in its supply chain are safe, that workers are treated with respect and dignity, and that manufacturing processes are environmentally and socially responsible. In Spring 2020, the HH Global Supplier Code of Conduct was updated specifically to reference the UN SDGs and clearly define requirements with regards to environmental and social standards. The principles within the Code align to labor and human rights, environment, business ethics, and sustainable procurement. All suppliers are required to comply with this Code. In doing so their actions benefit a shared network of companies, clients, and communities.
22
PEOPLE AND PLANET | Decent work and economic growth
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Policy HH Global’s management system governs conduct through policies, actions, and results. These are routinely reviewed and updated in line with leading practice, to increase quality, and to embed sustainability. Included amongst this comprehensive suite of materials is the Supplier Code of Conduct.
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INNOVATION WITH PURPOSE | Sustainability Report FY21
HH Global is committed to being a divers reflects the communities in which it oper opportunities of every person, regardles beliefs, sexual orientation or socio-econo Commitment
Targets
Progre
HH Global Leadership* to have 30% representation based on gender, race + ethnicity and age + generation, by 2025.
Leadership i groups, 49% previous yea
An enhanced relationship m in 2022.
15% of the HH Global annual spend will be placed with small + diverse business suppliers by 2025.
All people development and training programs to include DE+I principles and be completed by 100% of employees by 2025.
The first two which has be launch in Q1
*Group Management Board and Regional Leadership Teams
24 PEOPLE AND PLANET | Reduced inequalities
Welcome People and Planet
Headlines and Highlights
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se and inclusive business that rates. It respects the rights and ss of gender, ethnicity, religious omic background.
FY21
ess
is represented by eleven nationalities from three ethnic % of which are women - an increase from 40% in the ar.
On Track
d profiling of diversity within supplier onboarding and management protocols has been developed for roll out
Early stage
o modules of an updated Sustainability and ESG training suite, een translated into eight languages in addition to English, will 2022.
On Track
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INNOVATION WITH PURPOSE | Sustainability Report FY21
Embedding diversity within people development Actions
The sustainability team and HR function, with support from third party sustainability advisors and subject matter specialists, have collaborated to create a new suite of sustainability training modules for launch to all staff globally in Q1 2022. Module two of this compulsory training is dedicated to raising awareness and understanding of Diversity, Equity and Inclusion and includes the following topics: • An introduction to, and definitions of, diversity, equity, and inclusion. • Why this topic is so important and the benefits we all stand to make by improving our awareness and conduct
• Acknowledging and tackling unconscious bias
• Associated commitment and targets included within the Innovation with Purpose strategy
• Practical actions and additional resources.
To make the content as engaging, relevant, and accessible as possible, innovative technology has been used to introduce culturally aligned avatars to present the training content in nine different languages.
26
PEOPLE AND PLANET | Reduced inequalities
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Promoting diversity within the supply chain HH Global has set up an exclusive agreement with SoJustShop and Interall Group as a working partnership to collaborate with and support women and their families living in poverty.
The social benefit: • Workers paid a living wage in safe conditions • 30,000 hours of meaningful labor • Preservation of traditional and authentic handicraft skills The environmental benefit: • 6,000 kgs of waste diverted from landfill • 36,000 kg CO2e avoided • 81,000,000 L of water saved by using recycled cotton
Every product crafted by these women-led artisan groups provides meaningful employment hours and a living wage, while giving them access to an international market and fairer prices for their beautiful, sustainably produced items. Google and HH Global supported a women’s collective in Turkey by ordering 60,000 bags made from cotton offcuts, recycled post-consumer cotton and 5% rPET.
Policy HH Global’s management system governs conduct through policies, actions, and results. These are routinely reviewed and updated in line with leading practice to increase quality and embed sustainability. Included among this comprehensive suite of materials is the HH Global Equal Opportunities + Diversity Policy and updated sustainability and ESG training materials, which feature a module dedicated to diversity, equity, and inclusion. Reading and understanding these materials and upholding their principles is compulsory for all employees.
www.hhglobal.com
INNOVATION WITH PURPOSE | Sustainability Report FY21
We will ensure products are sourced and responsibly, while also helping our client more sustainable forms of consumption. Commitment
Targets
Progre
HH Global pr innovative an than ever be Implementat with all top th Product cate global stand In parallel, de continues, re with trials se A Plastic Pla in every regio The associa Plastic Free’
Educate clients about the availability of alternative solutions to plastic and cellulosic fiber-based materials, and increase the use of recycled content in production by 20% by 2025 (vs baseline of 2021).
Give all clients environmental impact calculations at quotation stage by 2025.
Eliminate single-use plastics in HH Global offices by 2025.
28 28 PEOPLE AND PLANET | Our Commitments and Targets
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d produced ts to look at .
FY21
ess
rovided several free-to-attend virtual expos to showcase nd sustainable materials to more of the client community efore. tion of impact dashboards continues (25% increase vs 2020), hirty clients by revenue to be deployed by H1 2022. egorization specifications have been harmonized to create a dard. evelopment of the world’s largest marketing materials data set eady for integration with HH Global’s proprietary carbon calculator, et for 2022. anet have been engaged to conduct plastic audits of a key office on, concluding Q2 2022. ated commitments made are recognized as ‘Working Towards ’.
On Track
On Track
On Track
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INNOVATION WITH PURPOSE | Sustainability Report FY21
HH Global helping Co-op and Nisa Actions The Co-operative Group is one of the UK’s largest grocery retailers, and a top ten UK client. Leveraging the latest technology and assessing the environmental viability of the procurement model, from supplier strategy to material selection, has positively contributed to sustainability strategies across the board, for both the Co-op and its subsidiary company Nisa.
The results Applying a range of initiatives to Nisa’s main marketing leaflet transitioned this important customer touch point onto FSC accredited paper (aligning with the wider magazines and POS portfolio) and generated the following environmental efficiencies:
Impact
Impact
2.489k
Liters of Water 26.47m
CO 2
Metric Tons of Carbon
Enough to fill 10.49
The emissions from
528
Olympic swimming pools
Average cars/year
Impact
Impact
3.25k
0.00
Trees
Tons of Fossil Fuels
Enough to cover
Barrels of oil 0.00 Equivalent of
1.65
Football pitches
All savings are captured through proprietary environmental impact and savings calculator technology and reported via easy-to-understand dashboards, providing direct access to track and analyze past and current environmental performance.
30 PEOPLE AND PLANET | Our Commitments and Targets
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People & Planet Expo
As a leading advocate of ESG solutions, the build up to the UN Climate Change Conference in Glasgow provided a huge platform for HH Global to foster collective action by bringing clients and suppliers together. Against the backdrop of COVID-19 restrictions, the decision was made to launch a virtual event capable of reaching a wider audience than ever before. Coinciding with COP26, the fourteen-day People and Planet 2021 Expo showcased the investment, and the positive progress being made, to support the ambition of achieving the goals of the Paris Agreement 10 years early. Attendees could access videos and downloadable content detailing HH Global’s sustainability agenda, case studies, and best practice, including: • Industry-first research into POS display and secondary packaging recycling • An assessment to comprehensively profile the sustainability of marketing executions
Utilizing a hosting platform powered by 100% renewable energy provided a zero-emissions event. Based on attendance, carbon savings were substantial with an estimated 1,717,466 air miles saved – equivalent to 41,288 tCO2e.
Policy HH Global’s management system governs conduct through policies, actions, and results. These are routinely reviewed and updated in line with leading practice, to increase quality, and to embed sustainability. Included among this comprehensive suite of materials is proprietary and marketing execution specific operating systems and carbon calculation technology.
• Pioneering research into physical versus digital POS
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INNOVATION WITH PURPOSE | Sustainability Report FY21
HH Global will help keep global warming below 1.5C by reducing its carbon footpr and moving to net zero emissions. Commitment
Targets
Progre
Mapping o all sites. FY21 perfo renewable
100% renewable energy in operations by 2025.
25% reduction in emissions by 2025 (per USDm revenue).
FY21 perfo produced p
Planned de manageme sustainabil The first int
Net zero emissions from entire value chain by 2035.
CO 2
32 PEOPLE AND PLANET | Climate action
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rint
ess
FY21
of tariffs and reporting of usage is implemented across
Early Stage
ormance represented a 110% increase in share of e electricity vs the previous year.
ormance represented a 12% decrease in emissions per USDm of revenue.
On Track
evelopment of supplier onboarding and relationship ent will enhance understanding of the overall lity profile of the value chain. take of ~100 tier one suppliers is planned for H2 2022.
Early Stage
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INNOVATION WITH PURPOSE | Sustainability Report FY21
Actions
Carbon footprint
Carbon emissions continue to be measured and reported in line with the greenhouse gas (GHG) protocol. As a globally scaled provider of goods and services, the responsibility for a significant amount of indirect greenhouse gas emissions is recognised as the principal contributor to the organizations’ carbon footprint. Considering both direct and indirect emissions, operations in this financial year represented an 8% absolute reduction when compared to the previous year, equivalent to 33,384 tCO2e. Specific to purchased goods and services, operations in this financial year represented an 11% reduction when compared to the previous year, equivalent to 44,630 tCO2e.
Emissions measurements will continue to be reviewed and refined to reflect changes to the organization and improvements in data collection and reporting. Reporting for this year introduced additional categories, including consideration for waste generated in operations, customer shipping and the end-of-life treatment of products sold. The FY21 report excludes operations associated to the acquired InnerWorkings business, which will be introduced from financial year 2022.
Our FY21 carbon footprint was 375,690 metric tons
Reduction In PG+S 11 %
Reduction In our total emissions from 2020 8 %
Reduction In electricity 40 %
409,074 (FY20)
Scope 1 Scope 3 0 226 375,464 Scope 2
tCO2e
tCO2e
tCO2e
375,690 (FY21)
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PEOPLE AND PLANET | Climate action
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Purchased goods and services detail (tCO2e)
Reduction In our Purchased Goods and Services emissions 11 %
FY20 FY21
400,000
300,000
200,000
100,000
0
Emissions from paper
Emissions from plastic
Emissions from production
Carbon reduction plan
As a major contractor to the UK government, HH Global publishes a carbon reduction plan on its website that confirms its commitment to achieving net zero by 2050 and sets out the environmental management measures which will be in effect and utilized during the performance of the contract. This includes the current carbon footprint and confirms the target in place to achieve net-zero by 2035, fifteen years ahead of the requirement.
The assessment also establishes a baseline upon which to set ambitious five and fifteen-year plans, as it works towards one of four priority goals - SDG #13, Climate Action. HH Global has committed to help keep global warming below 1.5C by reducing its carbon footprint and energy emissions by 25% by 2025 and moving to net zero emissions by 2035. CDP rates the environmental impact of more than 13,000 companies around the world, including those of many clients, and is emerging as the principal measure of an organization’s carbon impact. HH Global’s sustainability and ESG commitments and targets are governed by the Global Sustainability Team, which oversees activities alongside the four regional steering groups and task forces (North America, LATAM, EIMEA, and APAC). Each helps embed the culture of sustainable innovation around common goals throughout the business.
CDP – ratings increase!
For the second year, HH Global completed a full assessment of its carbon footprint as part of a carbon disclosure submission to CDP. The result represented an increase in rating from C to B-, alongside improvements in impact on forestry and water usage and a reduction in Scope 3 emissions.
Policy HH Global’s management system governs conduct through policies, actions, and results. These are routinely reviewed and updated in line with leading practice, to increase quality, and to embed sustainability. Included among this comprehensive suite of materials is a third-party carbon accounting platform tailored to packaging and manufacturing, a multi-tier profiling and transparency mapping platform for supply chain performance, and our environmental policy.
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INNOVATION WITH PURPOSE | Sustainability Report FY21
Support for other SDGs
Bayer and HH Global
Alongside these principles is a carbon reduction target to save 1170 metric tons of carbon and eliminate PVC by the end of 2022 in a cost neutral or cost positive way. Each principle is accompanied by a strategy that HH Global will execute in collaboration with Bayer marketing teams over the next year and will see Bayer employees recognized for their efforts in this program. The principles are underpinned with transparent sustainability data and reporting using our environmental impact dashboard to help users track how many metric tons of carbon are emitted when producing marketing materials. Available in 25 countries around the world, the dashboard is used to monitor progress against the targets that have been set.
Bayer and HH Global have collaboratively launched a global program to encourage adoption of six new global sustainability principles, which will help Bayer reach their carbon reduction target when ordering marketing print, POS and promotional materials. A partnership to reduce carbon by 1170 metric tons of carbon and eliminate PVC in production by the end of 2022
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PEOPLE AND PLANET | Our Support for Other SDGs
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The Principles align with the United Nations Sustainable Development Goals and the Science Based targets set by Bayer and cover the lifecycle of the marketing materials:
1. Use sustainable or recycled materials
2. Use less material
3. Ban PVC + reduce plastic
4. Reduce waste
5. Ensure fair working conditions in the supply chain
6. Drive circular end of life management
Overall target to save 1170 metric tons of carbon and eliminate PVC by the end of 2022.
Environmental savings:
Global Carbon Target
823.9
1170 metric tons
1170
CO 2
Metric Tons of Carbon
936
Liters of Water 7.8M
702
3633
468
Trees
234
Barrels of Oil 89.9
0
6.52
824
Tons of Plastic
Savings to end March, 2022
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INNOVATION WITH PURPOSE | Sustainability Report FY21
Community Foodbank
HH Global employees joined Unilever USA for their annual Day of Service to help communities most affected by the pandemic. More than USD 50 million of everyday products were distributed to those in need. Thirty employees from HH Global volunteered for thirty-two hours across seven US locations. They packed boxes of products to be shipped to food banks, youth centers, and homeless shelters. Financial donations were also made to provide necessary support. HH Global is proud to partner with clients and help support their ESG programs.
Community Food Bank Hillside, NJ
#DoGoodWithUnilever #DoGood
38 PEOPLE AND PLANET | Our Support for Other SDGs
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Hong Kong team supports ImpactHK family charity event
At HH Global’s first Family Fundraising Day, the children of employees visited the new office in Hong Kong to play games and watch a movie. The event was arranged by Will Spence (Hong Kong Country Manager) who, along with volunteers from the Marketing Society’s ‘Marketing for Good’ campaign, supports ImpactHK with marketing advice and donations. A previous event involved a charity walk where food donations and backpacks of winter essentials were handed out to Hong Kong’s homeless to support them through the colder months. Thanks go to Sam and Billy, two ‘little helpers’ who collected donations from employees. A total of HKD 2,000 (USD 250) was raised for ImpactHK, to help continue its fantastic work with the homeless community of Hong Kong.
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INNOVATION WITH PURPOSE | Sustainability Report FY21
COVID-19 Response Global crisis
The World Health Organization (WHO) declared COVID-19 a global pandemic on March 11, 2020. Less than two months later, WHO reported that the number of global cases had exceeded 5.9 million. HH Global implemented practical measures to safely navigate this unprecedented period in its history. Their success is a testament to the strength of relationships with employees, suppliers, and clients. Now, more than ever, HH Global focuses on putting people first to ensure the continued safety and well-being of employees in the ongoing battle to overcome the COVID-19 pandemic.
Prioritizing safety in the workplace
The health and safety of employees remains a top priority. Since the early stages of the COVID-19 outbreak, the Incident Management Team has been operating to respond to public health authorities’ announcements and to swiftly implement remedial measures for each country. Timely and transparent updates have been provided to employees regarding the impacts, including each business function’s situation and reactive measures.
The wide-reaching impact of the pandemic has required an adaption to a new work environment that promotes the safety and well-being of all employees and suppliers. The continued aim is to establish a safe and efficient work environment while minimizing the disruption faced by clients that access the products and services.
Actions:
• All staff receive Regional CEO messages and updates • Implementation of international business travel ban
• Distribution of the COVID-19 prevention guidelines and materials
• Mandating face masks when entering all HH Global facilities
• Recommendation to refrain from unnecessary domestic and international personal travel • Implementation of an organization-wide work from home policy for all applicable roles • Virtual meeting and conference functionality implemented via video conferencing applications • Provision of a financial contribution to COVID-19 testing and medical expenses for employees in countries without a national health service
• Provision of thermometers and hand sanitizers in all HH Global facilities • Implementation of social distancing measures in all HH Global facilities
• Daily COVID-19 impact monitoring of all HH Global facilities
• Implementation of additional employee resource and support groups
40 PEOPLE AND PLANET | Global Crisis - COVID-19 Response
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As a responsible global corporate citizen, HH Global is committed to helping resolve problems faced by the communities in which it operates, and which affect employees, suppliers, and clients. Employees In addition to all reasonable practical interventions being provided promptly to enable staff to conduct their functions in safety, HH Global has implemented a suite of innovative support services – many at the initiative of individual employees. Virtual communities provide an alternative to the reality of isolation, where colleagues connect and interact based on shared interests or values, such as music, pets and food. Suppliers The unprecedented supply and demand pressures associated with COVID-19 have had a direct impact on many of our suppliers across manufacturing and associated services. Where practical, support is provided to businesses that have been adversely affected by the pandemic. Awareness and understanding of ongoing supplier difficulties is managed via the Vendor Support function. Overcoming crisis and recovering the community
51,250 pounds repurposed
75,850 people helped
$6,888 landfill costs savings
82 pallets contributed
Clients Maintenance of uninterrupted support ensures that
$19,680 warehouse costs savings
Communities In North America, a donation of eighty-two pallets (51,246.453 lbs.) of surplus consumer packaged goods positively impacted disaster victims, including those being supported via an ongoing COVID-19 response effort. In addition, Matthew 25 Ministries* estimated that this donation generated warehouse and landfill cost savings of $26,568. clients continue to access products and services in a safe environment. A variety of solutions have been introduced to reduce the risk of infection, from the supply of hand sanitizers and facemasks to the hosting of virtual meetings. In many instances, at the outset of the pandemic, HH Global pivoted services to accommodate client demand for health and safety equipment, principally facemasks.
*Totals are estimated based on bill of lading quantities and weights, average annual warehousing costs, and one-time disposal costs.
Meanwhile, in countries where availability of facemasks was limited, some HH Global employees volunteered their time to produce their own. Many of the team in Czech Republic have their own sewing machines and were able to donate to those in need within their immediate communities.
* https://m25m.org/
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INNOVATION WITH PURPOSE | Sustainability Report FY21
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Sunday Times’ Sustainable Innovation Report
HH Global featured in The Sunday Times Sustainable Innovation Report, which explored how GreenTech startups are improving supply chain transparency, how consumer technology is embracing the circular economy, and how innovators are working towards a greener future for work, cities, and travel. HH Global’s responsibility for governing sustainability and ESG within a managed supply chain was the focus of a featured article titled ‘Brands transform in the decade of action’.
HH Global has launched an innovative new proposition for clients and large corporate brands. The Sustainability Assessment is a world first in the marketing execution industry, providing a detailed assessment specific to the sustainability of a company’s marketing spend. The assessment identifies risk ‘hotspots’ and suggests key recommendations for improvement, providing a carbon metric and a score card indicating how well purchases align to principles. The data driven assessment covers six key stages of the product lifecycle, considering both environmental and social practices across the supply chain. It enables brands to be measured against leading industry standards. The approach combines proprietary cloud technologies to leverage the largest marketing procurement dataset in the industry, machine learning, and AI to deliver actionable insights, including a sustainability rating and the associated carbon impact, all with the purpose of incentivizing best practice in marketing execution. The industry’s first sustainability assessment
42 IN THE NEWS
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HH Global features in Deloitte’s Goal13 Impact Platform Report HH Global recently featured in Deloittes’ Goal 13 Impact Platform Report: a summary of interviews from executive voices and key stakeholders in the market. Having interviewed more than two hundred and fifty companies to date, in sectors from finance to procurement, Deloitte has created a comprehensive summary of how cross-sector collaboration can be harnessed to create the most impactful climate change initiatives. The Goal 13 Impact Platform Report was used throughout the COP26 summit to inform and empower important conversations around businesses’ climate journeys; examining what it takes to make climate programs successful. It was mentioned at numerous high-profile COP26 events including the CBI business dinner and hustings. “This report looks at how businesses across the board are transitioning to net- zero carbon emissions, to protect our planet for future generations. We are therefore thrilled to have featured alongside some of our biggest clients, coming together under one common sustainability goal, and further distinguishing HH Global as the market leader.” - Kevin Dunckley, Chief Sustainability Officer
HH Global awarded pioneer status
HH Global has achieved ‘Pioneer’ status in the recent Responsible Sourcing Diagnostic Report, released by Accenture, a Fortune 500 professional services company that annually interviews numerous key businesses and stakeholders from across various industries and regions. The Responsible Sourcing Diagnostic tool, designed by Accenture, provides a holistic framework to measure businesses and support their sustainability and ESG programs. The tool is used to investigate how companies are reducing carbon, securing customer and employee trust, and driving more efficient business models. Pioneer status is the top rating that can be awarded, and ranks HH Global in the top 15% of companies taking part. It denotes HH Global as demonstrating pioneering, leading practices in almost all responsible sourcing capabilities. ESG remains focal for all our sourcing considerations, such as our ability to leverage innovative technology, and data insights to monitor suppliers, set targets and mitigate risk. The report also acknowledges how HH Global ensures its suppliers are made aware of the environmental impact of purchasing options, and promotes and encourages the adoption of environmentally friendly options. The report also commends HH Global’s social sustainability practices, such as its promotion of supplier diversity and inclusion.
www.hhglobal.com
INNOVATION WITH PURPOSE | Sustainability Report FY21
HH Global meets Prince Charles as part of the Sustainable Markets Initiative As part of continued involvement in the Sustainable Markets Initiative, HH Global’s Executive Chairman Robert MacMillan was delighted to have been invited to meet Prince Charles in Kew Gardens, to discuss the ambitious, practical actions set out in the new Terra Carta. HH Global joined an exclusive list of top sustainability leaders with ESG agendas at the forefront of their business strategies, including Diageo, BP and Burberry. The visit enabled those invited to deepen their understanding of the biodiversity crisis by discussing the solutions being explored at the world leading Royal Botanic Gardens.
World Sustainability Awards finalists 2021 HH Global was nominated as finalist for the Profit with Purpose award at the inaugural World Sustainability Awards 2021, the first global platform to celebrate excellence in corporate and social sustainability. Recognition of dedication to implementing pioneering sustainable practices saw HH Global included amongst an impressive line-up of best-in-class businesses (including client Bayer, who featured as a finalist in the Carbon Reduction award).
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HH Global sponsors industry research
HH Global’s sustainability principles recognized by POPAI Industry recognition of HH Global’s commitment to sustainability came from POPAI (Point Of Purchase Advertising International), who awarded their corporate environmental Sustainability Standard (PSS) accreditation in 2021. Forming the cornerstone of POPAI’s commitment to lead the industry to a point of self-regulation for the management of environmental performance, this accreditation acknowledges the sustainability principles that have been successfully embedded in HH Global. Part of the Shop! global network, POPAI is a not-for-profit association dedicated to promoting best practice to enhance the total shopper experience across six continents and over forty-five countries around the world. Its membership includes top retailers, leading brands, brand agencies, producers and educators committed to relevant shopper marketing research and education. “Sustainability continues to be front and center of our clients’ agendas, many of whom are members of POPAI themselves. This latest accreditation acknowledges the integrity behind the sustainability commitments we have made, and how we are actively delivering against them. Leading brands and retailers will increasingly look to this standard as a point of difference and, once again, HH Global is at the forefront.” Kevin Dunckley, Chief Sustainability Officer.
HH Global provided sponsorship of POPAI’s innovative research into the recycling of POSM displays and secondary packaging in the UK and Ireland marketplace - and the findings were startling. This piece of research delivers dramatically contrasting messages: 88% of the brands and retailers questioned considered recyclability an important topic, yet 35% did not have any measurable recycling targets for display material and packaging. It goes on to outline how, historically, very little attention has been paid to the recyclability of POSM displays in comparison to primary packaging. Subsequently, approaches to recycling are fragmented and there remains a real need for consolidation of efforts across the board. The research also details the integral role which suppliers and integrators like HH Global play to help ensure that POSM is designed with sustainability and end-of-life in mind. It concluded that there is an urgent and wide-spread need for education on this topic.
Read the full POPAI report here .
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