70 ITV plc Annual Report and Accounts 2023 ITV plc Annual Report and Accounts 2023 71 S CLIMATE RELATED FINANCIAL DISCLOSURES CONTINUED T R A T E G I Detailed opportunities C R 3. OPERATIONAL: COST REDUCTIONS AND WIDER BENEFITS OF INNOVATIONS E Our More than TV strategy, and our history of being a climate leader in our sector, put us in a good position to benefit from the opportunities P O that exist as we transition to a sustainable world. We see a number of opportunities taking shape which are linked to our relationship with Context Opportunity Impact R audiences and advertisers, and to the operational changes we are making. While these opportunities are not significant to our financial T success, we believe it is important to capitalise on these in order to ensure ITV continues shaping culture for good; remains attractive to talent, By developing targets to reduce emissions involved in the production of our Alignment to corporate strategy – high content, we have an opportunity to develop innovative and more efficient Cost saving – minimal/moderate* customers and partners; retains its reputation for social care; and is resilient to risk. ways to produce and deliver our content. These changes can also improve our resilience and reduce costs, as well as opening new creative opportunities. 1. AUDIENCES (REPUTATIONAL BENEFITS)Time horizon Short – Longer term Context Opportunity Impact How we are capitalising Our social purpose agenda of shaping culture for good is core to ITV’s Alignment to corporate strategy – high strategy. We have a strong track record in using our brand, reach, talent and We continue to focus on innovative ways to produce and deliver our content: programming to engage a mass audience on climate related themes and Importance to social purpose of shaping culture for good – high • Remote production technology (e.g. FIFA Women’s Football World Cup, Men’s Rugby World Cup and Love Island) solutions. Potential increase in audience / viewership – minimal / moderate• Testing virtual production technologies for scripted productions By reflecting the challenges that people are facing in modern Britain, we can • Cloud based editing to reduce travel and post production energy use remain relevant and attractive to a mass audience, supporting brand • Monitor clean mobile power solutions that are coming to market and have begun testing and trialling solutions (e.g. battery technology) perceptions and helping to maintain our reach in the market. In addition, we continue to explore ways to reduce our energy expenditure through sustainable technologies e.g. use of solar panels on our office buildings and Time horizon production locations. Whilst these may require initial investment, they will help reduce costs in the longer term and support our energy resilience. Short – Medium term Metrics in development Targets How we are capitalisingWe are driving a range of actions and innovative practices to reduce our We do not currently have targets in place in this area, as we are still It is difficult to attribute positive perception of the ITV brand to our environmental activity. However, we approach this in a number of ways:production emissions. We will explore setting new indicators, for instance developing the indicators that are most relevant. • Run monthly audience surveys to monitor how the ITV brand is perceived, which includes questions on our environmental credentialsaround the share of our productions using remote production technologies, amount of fuel avoided due to large scale battery technology, or any other key • Track the impact of campaigns and their effect on the perception of the ITV brand (e.g. Love Island and eBay partnership)practices, if they prove helpful in our transition. An update of our activity and Metrics in development Targets decarbonisation levers in this area can be found as part of our Climate Transition Plan. • ITV brand perception; bespoke indicators relating to specific campaigns, We do not currently set specific targets in this area. allowing ITV to track the level of engagement across the audience Resilience Our approach to developing these new ERM CVS provided limited assurance of our e continue to focus on ensuring ITV metrics is still evolving, as we identify the full carbon footprint in 2023 following 2. COMMERCIAL: GROWING OUR REVENUE FROM NET ZERO ALIGNED BRANDS, PRODUCTS AND SERVICES Wapproaches and methodologies that are the ISAE3000 methodology. o remains resilient to a 2 C or lower scenario by most useful in driving business decisions, Context Opportunity Impactcontinuing to review the actions we’re taking, developing new metrics, improving our data meeting stakeholders’ needs and emerging Explanation of trends in line We expect to see growth in the volume of advertising for brands, products Alignment to corporate strategy – highindustry standards. and services aligned to the Net Zero transition over the coming years. By quality in these areas, upskilling teams and with targets establishing ourselves as a reputable and trusted environment for Commercial opportunity – moderateengaging with others in the industry. Our Following best practice in setting In 2023, our Scope 1 and 2 footprint has advertisers to showcase their sustainability credentials, we can grow the strategic objectives within our Transition plan reduced by 52% compared to 2019, ahead volume of advertising with existing clients and new low carbon businesses.focus on enhancing our climate resilience our Net Zero ambitionof our targeted trajectory of 17% reduction. Time horizon across the business. Our emissions reduction targets were Main drivers include a shift to renewable Short – Medium term updated in 2022 to align with the Net Zero electricity tariffs across a majority of our As we continue to evolve our climate definition of the Science Based Target sites, a transition to low emission fleet How we are capitalisingscenario analysis, this will help to improve initiative (SBTi). This year, our additional 2050 vehicles, and ongoing modernisation of We have created a ‘sustainability fund’ which we are trialling with one of our media agency partners which they can use to support sustainable advertisers in ITV’s overall resilience and preparedness to targets to reduce all of our emissions by 90% our sites. Business travel emissions remain their portfolio, offering them additional airtime with ITV to help them grow their business through advertising.mitigate against climate risks in varying (base year 2019) have been validated by firmly ahead of our targets, with a 45% Metrics in development Targets degrees of potential outcomes. ITV’s SBTi. Our 2030 targets, which were validated reduction from 2019, ahead of the 10% strategy remains flexible and will be annually by SBTi in 2020, remain unchanged. reduction that was targeted. The most The metrics in this area are in development. We do not currently have targets in this area, as we are still exploring the reviewed to make sure that it remains material Scope 3 category is Purchased appropriate methodology for developing indicators, and their integration into resilient in the face of ITV’s risks. Goods and Services, which has decreased our existing activity. ITV emissions reduction targets in 2023 by 13% compared to 2019, Metrics and Targets Emission reduction 2030 2050 slightly ahead of our targeted trajectory Scope 1 and 2 46.2% 90-95% of 10% reduction. Our Journey to date Scope 3 28% Given that we are still working on improving Setting ambitious targets and reporting on the data quality of this category, with plans our progress accurately and transparently to increase the share of Company level data are critical to our successful sustainability We use metrics that are applicable to past, in the short term, we are focusing on our transition. As part of our Climate Transition current and future data, meaning that they supplier engagement and decarbonisation Plan, we are establishing more granular are consistent across our business and allow activities as a priority. decarbonisation levers that can be for trend analysis. Our methodology aligns integrated into our business planning. ITV to GHG Protocol Corporate Accounting and does not currently implement an internal Reporting Standard, and best practice carbon price, but we recognise the value this approaches that relate to our sector. may present in the future. All details can be found in our Basis of Reporting. We have not implemented We have also started developing new any changes in the KPI calculation indicators to better navigate and monitor the methodologies compared to previous years. climate related risks and opportunities as well as our impact in accelerating the economy-wide transition to Net Zero.