Threats and opportunities related to climate change
Alma Media started evaluating the threats and opportunities related to climate change in 2010. The evaluation is ongoing, and estimates concerning the threats and opportunities will be specified in more detail as the process continues.
For Alma Media, the effects of climate change combined with extreme weather conditions particularly affect the distribution of papers. Cold, snowy winters or very rainy summers may increase work-related accidents in distribution operations. Extreme conditions may also affect the distribution of electricity and thereby the availability of the Group’s digital services.
Work safety is enhanced in the Group by means of active work methods training preventing accidents at work.
Threats related to changes in legislation
The development of regulation related to climate change mainly has an indirect effect on Alma Media. Increased taxation of energy or fuels, for example, raises the prices of these commodities, which indirectly results in an increase in the price of newsprint. Mandatory eco-labels on printed products are an example of a direct effect a change of legislation would have on Alma Media.
The financial risk caused by the realisation of these changes can be controlled by means of purchasing contracts, for example, and by anticipating future regulation in the operations.
Underestimating climate issues would probably, in part, decrease the interest of advertisers towards Alma Media’s products and services. It would also have an indirect effect on the commitment of employees as well as the ability to recruit new talent. Alma Media limits this threat by means of active climate work and by communicating its climate issues in the international Carbon Disclosure Project (CDP) reporting, for example, in which Alma Media was the best Nordic media group in 2010.
An environmental approach and environmental awareness are central in Alma Media’s construction projects, for example, and in the majority of the Group’s procurement. Decreasing environmental impact usually also saves costs.
Environmentally friendly products and services are becoming increasingly popular. Alma Media must ensure that its offering meets the needs of the consumers also in this respect. Digital services, for example, are especially climate-friendly products provided by Alma Media. Using digital services decreases the need to move around and thereby reduces the climate effects of commerce.
The production of newspapers does not contain any significant reputational risks with regard to climate change. The climate impact of newspapers is relatively small, thanks to the use of recycled paper, among other factors.