UN Global Compact principles: VII-VIII

Paper, which continues to be the most important resource for the traditional print media business, is a particular priority at Bertelsmann. Even in an increasingly digitized media landscape, printed books, magazines, brochures, and flyers will continue to have their place. Therefore, resource conservation, waste avoidance, and climate protection play a major role for Bertelsmann across the entire paper value chain. Bertelsmann is committed to responsible paper sourcing, to protect forests which are valuable for climate protection and biodiversity. In their function as print service providers and buyers, the companies in Bertelsmann’s service divisions offer their customers a comprehensive range of sustainably certified and climate-neutral print products.

To complement its environmental policy, Bertelsmann has issued a Paper Policy: As part of its Group-wide environmental objectives, Bertelsmann aims to keep the proportion of recycled paper and paper from certified, sustainable forestry in the paper it purchases itself at over 90 percent and continue increasing it. Recycled paper as well as papers of certified origin that meet FSC®, PEFC™, SFI® requirements or comparable standards are regarded as sustainably sourced paper. In this way, the company advocates for certified sustainable forestry. For example, no wood from primary or protected forests may be used in producing the paper. In addition, Bertelsmann ensures that, in addition to certified wood fiber, the paper used has as high a proportion of recycled material as possible. Above and beyond the Group-wide environmental objective, Penguin Random House aims to switch its paper sourcing to 100 percent sustainable paper by 2025.

For information on the general management approach for environment matters: see GRI 300.

UN Global Compact principles: VII-VIII

Paper consumption

in tons

	2018	2017
Total paper consumption	1,834,010	1,824,990
Of which self-purchased paper 1)	1,145,740	1,120,900

1) Previous-year figure was adjusted due to a corrected presentation of intra-Group deliveries.

Paper consumption accounts for the largest share of Bertelsmann’s total raw material consumption. This figure has been adjusted for intra-Group supplies within the Group, which are reported separately under “Consolidation” for the first time. In 2018, the Bertelsmann Printing Group bought by far the largest quantity of paper. The publishing businesses of Penguin Random House and Gruner + Jahr also required large quantities of paper. Penguin Random House recorded a significant increase in paper purchasing of 17 percent in 2018, mainly due to the market success of Michelle Obama’s book “Becoming.” By contrast, quantities at Gruner + Jahr fell by 8 percent due to the ongoing realignment of the business.

Paper consumption by corporate division

in tons

	2018	2017
RTL Group	190	210
Penguin Random House	263,260	224,260
Gruner + Jahr	106,840	116,160
Arvato 1)	16,920	16,280
Bertelsmann Printing Group	1,594,980	1,600,060
Other	70	50
Total paper before consolidation	1,982,260	1,957,020
Consolidated	-148,250	-132,030
Total paper after consolidation	1,594,980	1,600,060

1) Previous-year figure was adjusted due to corrections to volumes of packaging paper at individual sites.

Paper consumption accounts for the largest share of Bertelsmann’s total raw material consumption. This figure has been adjusted for intra-Group supplies within the Group, which are reported separately under “Consolidation” for the first time. In 2018, the Bertelsmann Printing Group bought by far the largest quantity of paper. The publishing businesses of Penguin Random House and Gruner + Jahr also required large quantities of paper. Penguin Random House recorded a significant increase in paper purchasing of 17 percent in 2018, mainly due to the market success of Michelle Obama’s book “Becoming.” By contrast, quantities at Gruner + Jahr fell by 8 percent due to the ongoing realignment of the business.

UN Global Compact principles: VII-IX

Energy and Emissions as an environmental factor is a focus of cross-divisional cooperation on environmental and climate protection. Although increasing digitalization is making Bertelsmann less dependent on finite natural resources, it is also increasing energy consumption for data management. The sharing of knowledge and experience within the Bertelsmann “be green” network covers topics such as increasing the use of renewables, and teaming up on energy efficiency projects. The increasing transparency of energy consumption thanks to the “green.screen” IT platform supports exchange between sites while also enabling site-by-site energy data management, which in turn facilitates energy and cost savings.

The Bertelsmann Energy and Climate Policy, to which the Executive Board agreed in March 2019,describes the framework for energy-efficient and climate-friendly business practices. Bertelsmann’s purchasing behavior in energy sourcing can directly influence the demand for climate-friendly options and thus contribute to the sustainable transformation of the energy markets. Therefore, the purchased energy should come from renewable sources wherever this is economically feasible. The electricity purchased by Bertelsmann companies should always have lower greenhouse gas emissions than the respective national electricity mix. In addition, a decentralized on-site generation of our own electricity and heat using renewable energies and, on a transitional basis, highly efficient natural gas-powered cogeneration plants, will help to transform the local energy markets. Bertelsmann does not use lignite or anthracite in producing its own energy, and expects its energy suppliers to gradually phase out fossil fuels.

Information on general management approach to the environment: see GRI 300.

UN Global Compact principles: VII-VIII

Energy consumption

in GWh

	2018	2017
Electricity	819	851
Heat	739	749
Fuel 1)	74	73
Total	1,632	1,673

1) Previous-year figure has been adjusted.

Total energy consumption fell by 3 percent year-on-year. Electricity consumption fell by 4 percent and heat consumption fell slightly by 1 percent. Energy consumption from fuels rose slightly by 1 percent in the same period.

Energy consumption by corporate division

in GWh

	2018	2017
RTL Group	146	151
Penguin Random House	101	111
Gruner + Jahr	56	60
Arvato	345	340
Bertelsmann Printing Group	945	974
Other	40	37
Bertelsmann (total)	1,632	1,673

Penguin Random House recorded a significant drop in energy consumption (-9 percent). While heating consumption rose slightly due to cold temperatures in the U.S., electricity consumption declined significantly, partly due to the closure of a warehouse in the U.K., and lower electricity consumption at the Latin American sites. Gruner + Jahr (-8 percent) was also able to reduce its electricity consumption at Baumwall in Hamburg, among other sites. RTL Group recorded a decline in energy consumption (-4% percent), mainly due to the sale of Girondins de Bordeaux, and synergy effects from the merger of Radio France and M6. Energy savings at RTL City in Luxembourg, UFA in Germany, and RTL Belgium also contributed to the reductions. The Bertelsmann Printing Group reduced its energy consumption by 3 percent in 2018 compared to the previous year. The decline in electricity and heat consumption is largely attributable to production declines in Prinovis Germany’s printing business. Also, optimizations in the printing process at Mohn Media and at Prinovis led to efficiency increases and energy savings.

Meanwhile, Arvato recorded a slight increase in energy consumption (1 percent), in particular due to the expansion of its logistics activities in Germany. The energy consumption of the other divisions rose, among other things due to the first-time inclusion of HotChalk in the Education division, and of other smaller sites in Germany.

Fossil fuels and propellants used

in GWh

	2018	2017
Natural gas	1,149	1,185
Diesel	55	54
Heating oil	15	13
Petrol/gasoline	11	11
Other	11	11

Natural gas is used in highly efficient combined heat and power (CHP) plants for the production of electricity and heat, as well as in heating systems for the company’s own heat generation. Only a small part of the heat generation is carried out with heating oil. Diesel represents the largest share of fuels. Most of it is used by company vehicles and trucks, as well as forklift trucks. Also, many sites are equipped with emergency power generators that use diesel during regular test runs. In accordance with the Bertelsmann Energy and Climate Policy, no coal is used for generating energy within the Group.

Renewable energy

in GWh

	2018	2017
Electricity from renewable sources with certificate of origin	67	57
Total electricity consumption	819	851

UN Global Compact principles: VII-VIII

Business travel

in millions of km

	2018	2017
Air	239	245
Rail	37	36
Rental car	20	22
Business travel total	296	303

The distances covered for business travel across the Group declined slightly in the reporting year. At around 81 percent, air travel accounted most of the distance traveled. Compared to the previous year, a 2-percent decline in business travel by air was recorded. While rental car mileage also fell by 10 percent, there was a 5-percent increase in the more environmentally friendly choice of rail journeys.

Business travel by corporate division

in millions of kilometers

	2018	2017
RTL Group	89	82
Penguin Random House	55	60
Gruner + Jahr	27	32
Arvato	86	91
Bertelsmann Printing Group	7	6
Other	32	32
Bertelsmann (total)	296	303

As in the previous year, RTL Group recorded a significant increase and, for the first time, accounted for 30 percent of Bertelsmann’s total business travel. Despite lower mileage at RTL Hungary, Mediengruppe RTL, and RTL Belgium, the distance traveled rose by 10 percent due to increased data transparency at UFA Germany. At Arvato, business travel fell by 5 percent and accounted for 29 percent of Group-wide business travel. Arvato Supply Chain Solutions recorded significantly fewer air miles traveled due to completed expansion activities in the U.S. At Penguin Random House, business travel fell by 8 percent, partly due to efforts to reduce air travel by Verlagsgruppe Random House in Germany. The 16 percent decline at Gruner + Jahr is also attributable to reduction measures. The Bertelsmann Printing Group recorded an increase from 6 million to 7 million kilometers, mainly due to higher international travel activities at Sonopress.

UN Global Compact principle: VIII

The energy intensity, the ratio of the sum of the reported energy-consumption values in megawatt-hours to the total revenues reported in the consolidated financial statements (in millions of euros), remained 5 percent below the previous year’s figure at 92.3 (previous year: 97.4)

UN Global Compact principles: VII-VIII

Information on the general management approach for environmental matters: see GRI 300.

Information on the management approach for water: see GRI 306.

UN Global Compact principles: VII-IX

Bertelsmann is striving to achieve a Group portfolio that has higher rates of growth and is more digital, international, and diversified. Progressive digitalization, the expansion of our growth platforms, and investments in the core business also have a lasting effect on the Group’s Carbon Footprint.

Bertelsmann supports the international community’s goal of limiting global warming to below two degrees Celsius. In the 2016 financial year, the Group used the Science-Based Targets method to determine which company-specific contribution would be required to achieve the <2°C objective. Based on these analyses, Bertelsmann aims to reduce its greenhouse gas emissions by 20 percent by the year 2025, adjusted for any changes in the portfolio. As an intermediate step, emissions are to be reduced by 10 percent by 2020.

The Climate Protection objective relates to the use of fuels for our own electricity and heat production (Scope 1) as well as to purchased electricity and heat (Scope 2). The individual Bertelsmann divisions already support the achievement of Group-wide environmental objectives by setting numerous objectives of their own. For instance, RTL Group aims to cut its greenhouse gas emissions by 20 percent by 2025 compared with 2016 and, in addition to Scope 1 and 2 emissions, also includes emissions from business travel (Scope 3) in this objective.

The Bertelsmann Energy & Climate Policy describes the framework and specific climate protection measures in these transformation processes. The Group-wide use of the “green.screen” IT platform serves to record the local energy consumption and greenhouse gas emissions of individual Group companies, and regularly track the achievement of the climate-protection objectives.

Greenhouse gas emissions are accounted for in accordance with the “Corporate Accounting and Reporting Standard” and “Scope 2 Guidance,” and following the “Corporate Value Chain (Scope 3) Standard” of the Greenhouse Gas Protocol (GHG Protocol). Greenhouse gas emissions are reported in accordance with the GHG Protocol and in CO2 equivalents (CO2e). According to the GHG Protocol, emissions are reported in three different scopes. Scope 1 refers to Bertelsmann’s direct emissions, e.g. from its own (on-site) power generation and the operation of printing machines. Scope 2 covers indirect emissions from the generation of purchased electricity and district heating, or heat provided by the landlord. In accordance with the GHG Protocol Scope 2 Guidance, Bertelsmann reports both market-based and location-based emissions in the overview of key indicators.

As part of measuring the achievement of the objective, an adjustment is made to take account of portfolio changes. Effects from the sale and acquisition of Group companies are retroactively neutralized each year, and the basic data adjusted accordingly. The environmental indicators also include other indirect greenhouse gas emissions (Scope 3) that are not part of the objective.

UN Global Compact principles: VII-VIII

Greenhouse Gas Emissions

in tons of CO2e

	2018	2017
Scope 1 total	256,500	262,300
Electricity	70,900	74,100
Heat	163,400	166,300
Transport	22,200	21,900
Scope 2 total 1)	210,000	237,400
Electricity	175,100	201,800
Heat	34,900	35,600
Scope 3 total	1,430,400	1,412,000
Business travel	67,800	69,500
Staff commutes	72,100	72,900
Paper	1,217,800	1,193,700
Energy-related activities	72,700	75,900
Total	1,896,900	1,911,700

1) Scope 2 emissions were calculated using the market-based method as indicated in the Scope 2 Guidance of the GHG Protocol. According to the site-based method, Scope 2 emissions amounted to 252,000 metric tons of CO2e (previous year: 276,700 metric tons).

About three-quarters of the reported direct and indirect greenhouse gas emissions are attributable to indirect emissions along the value chain (Scope 3). These emissions were up by 1 percent year-on-year in 2018. The remaining 25 percent of total emissions are attributable to Scope 1 and Scope 2, which show a year-on-year decline of 2 percent and 12 percent respectively.

Scope 1 and 2 Emissions

in tons of CO2e

	2018	2017
RTL Group	35,900	39,600
Penguin Random House	28,700	37,200
Gruner + Jahr	14,500	16,500
Arvato	96,600	102,400
Bertelsmann Printing Group	278,500	291,600
Other	12,300	12,400
Bertelsmann (total)	466,500	499,700

The largest share of the Scope 1 and 2 emissions from Bertelsmann were attributable to the services divisions, Bertelsmann Printing Group (278,500 metric tons of CO2e) and Arvato (96,600 metric tons of CO2e). In particular, the consumption of electricity, natural gas, and heat by printing machinery and other production facilities, as well as the operation of materials-handling equipment and lighting at logistics sites are reflected in the carbon footprints of these divisions. Decreases in production outputs at the printing plants, and lower CO2e factors at numerous energy suppliers, contributed to a reduction in emissions. In addition, the volume of renewable electricity with certificates of origin rose by almost 10,000 MWh year-on-year (see GRI 302-1).

The largest decrease in Scope 1 and 2 emissions in absolute terms was reported by the Bertelsmann Printing Group with a savings of 4 percent. This is due in particular to decreases in production outputs and process optimizations at Prinovis, as well as a more efficient use of compressed air at Mohn Media. Penguin Random House reduced its Scope 1 and 2 emissions by 23 percent in the reporting year. Among other things, this was achieved through the increased purchase of green electricity certificates with proof of origin at Penguin Random House US.

Arvato reduced its greenhouse gas emissions by 6 percent year-on-year. This reduction is primarily due to the closure of Arvato CRM locations in Germany and Turkey and improved CO2 factors at relevant energy suppliers.

The 9-percent decline in Scope 1 and 2 emissions at RTL Group was partly due to the switch to green electricity with certificates of origin at RTL Croatia.

UN Global Compact principles: VII-VIII

See GRI 305-1.

UN Global Compact principles: VII-VIII

Scope 3-Emissions

in tons of CO2e

	2018	2017
RTL Group	35,200	33,800
Penguin Random House	305,100	266,400
Gruner + Jahr	125,200	140.000
Arvato	98,300	100,700
Bertelsmann Printing Group	853,000	859,100
Other	13,600	12,000
Bertelsmann (total)	1,430,400	1,412,000

Other indirect greenhouse gas emissions from the production of paper that Bertelsmann buys itself, emissions from energy-related activities (outside of Scope 1 and 2), emissions from business travel, and emissions from employee commuting are reported as part of Scope 3 emissions. At 60 percent, the Bertelsmann Printing Group was responsible for the largest share of Scope 3 emissions, followed by Penguin Random House (21 percent), and Gruner + Jahr (9 percent). In these three divisions, the volumes of paper used at the print and publishing businesses had a particular impact. Scope 3 emissions reported by Arvato accounted for 7 percent of the total, almost half of which is attributable to employee commutes.

UN Global Compact principle: VIII

Specific greenhouse gas emissions (Scope 1 and 2) fell from 29.1 metric tons of CO2e per 1 million euros of Group revenue in 2017 to 26.4 metric tons of CO2e per 1 million euros of Group revenue in 2018.

UN Global Compact principle: VIII

Data on water consumption, wastewater and waste generation is also recorded across the Group during the annual environmental data collection. Based on this data, trends can be discerned and potential for improvement identified. Due to the varying local relevance and regulation of water and waste management, these topics are predominantly handled on a decentralized basis by the local businesses.

UN Global Compact principle: VIII

Wastewater discharge

in millions of m3

	2018	2017
To public sewers or to third parties	1.70	1.48
To surface water, receiving waters or own wastewater-treatment plants	2.19	2.27
Total wastewater discharged	3.90	3.75

Total wastewater discharge decreased by 4 percent in 2018. 61 percent of the wastewater was discharged into surface water, receiving water, or Bertelsmann’s own wastewater treatment plants. This was 4 percent higher than in the previous year. The remaining 39 percent of the wastewater was discharged into the public sewer system or to third parties.