Media and Entertainment's Special ESG
Relationship Between ESG and Reputation
Hello this is Sunghoo Moon
Today, I will tell you about media and entertainment's
special ESG
ESG has started from investors' demand
for a firm's achievement and according responsibility
and has settled as a business value and strategy
Then what relationship does ESG and reputation have?
Reputation is a social memory
that people have
At the same time, it's also a mental picture
But this reputation
controls or catalyzes the economic activities between individuals and firms
and an economic structure happens where it decides the added value in the trade chain
I called this economic structure
reputation economy
Now is the era of reputation economy
There are three reasons as to why reputation became important
First is development of social media
Second is activism
Third is the emergence of gen Z
Let's take a look one by one
Social media has had a explosive growth
Social media is an eye that can
see every part of one's life
SNS written in Korean keyboard
becomes 눈, Korean for eye
Now, social media has become
an important tool for people
to share opinions, thoughts, experiences, and perspective
Social media has developed rapidly for the past few decades
and as a result, firms are facing a society
where they are exposed as they are
Now in social media
not who said it
but what was said
started to spread in light speed
According to one global firm's research
a bad news about a firm
was spread to 25% of the whole world within two hours and a half
and to the remaining 75% in the next 24 hours
This is not wrong
and we can see that from the fast spreading digital news
This rapid development of social media
was the first element that brought reputation importance
and second is activism catalyzed by social media
Social media made expressions of activists
very easy
Some activists claim boycotting
in their social media account
or claim buycott
and spread anti-boycott activities
Activists write petitions
and share links, and construct public opinions
Also activism spread awareness of topics
like environmental protection, gender equality
and sexual minority
Next is the emergence of gen Z
Gen Z is called digital native
They also say that babies were born with smartphones in their mouths
Especially, gen Z are more interested than the older generation
in changing the world
and they are also very participatory which makes them prefer fair firms
and ask for responsibility to those that lack it
and act together
These three, development of social media, emergence of activism
and gen Z, reputation has become very important
and this became an important reason
that accelerated firms' ESG responsibility
Reputation effect of ESG
was also mentioned in the report
Who Cares Wins from 2004, the report
where the word ESG was first used
Moreover, these issues
can have a strong impact on reputation
and brands, an increasingly important part
of company value, it claims
ESG reputation has great influence
in firm values
and also in brand image
This also leads some firms
to green wash
Green washing refers to when firms exaggerate their
ESG or make up their ESG
There are many inhibition measures
to green washing
and regulations as well
ESG and innovation
In the sustainable development goals, there is an important word
innovation
ESG value has emerged newly
and ESG business era has just
started a few years ago
so many first are thinking of how to increase
profit and revenue while performing ESG business
The way to perform ESG business well
is innovation in the SDG
We are always thinking of ways
to manage carbon and plastic waste
We are in an era where carbon and plastic waste
must be managed innovatively to protect the environment
There are three ways with the letter R
First is replace
Replace fossil fuel energy
and replace plastic waste
with other products and packaging
But it's not easy
Renewable energy are not as available
as fossil fuel energy
and plastic as well, it is hard to find a replacement
since it is sturdy but light
and also convenient to use
Second is reduce
Reduce carbon and plastic waste
We are working hard, but again, it's not easy
Third is reuse or recycle
Recycle carbon, and plastic as well
Other waste too
We are looking for ways to recycle
There is a music band that
performed this three Rs
It is Coldplay
Coldplay claimed a sustainable low carbon tour
Let's think about it
A world class band going on world tour
What is their ESG issue?
First, they move a lot
so they will emit a lot of carbon
Second, they use electricity in their concerts
so they will burn fossil fuel
Third, during or after their performances
there will be waste
But Coldplay, to solve these three issues
adopted three innovative solutions
First was sustainable transportation
which was using sustainable jet fuel
This sustainable jet fuel is know to be
more expensive than normal jet fuel
but has lower carbon emission
This sustainable jet fuel is made with renewable waste
Second, electricity use
Coldplay did renewable energy concerts
which they generated energy
with solar panels in the stage floors or center halls
and electric dance floor and cycles
that fans could ride to generate energy
to generate the electricity needed for their concerts
Third is waste
and they are cutting waste through recycling
First, the LED bracelets used during concerts
are made with plant based ingredients that are 100% compostable
Second, show props
are retrieved and sanitized
to use in next tours
Confetti used in concerts
are also made with 100% biodegradable material
ESG is a very important value
But to perform ESG
innovative methods are needed
and innovation isn't just made from capital
and effort
As you can see in Coldplay's case
solving small ESG issues that I'm causing
is also a great ESG business and activity
ESG and entertainment
There is a reason why entertainment industry
talks about sustainable development
Let's see the four main reasons why
the entertainment industry talks about
sustainable development and values it
First is environment protection
The entertainment and media industry
is actively developing
environment friendly production methods
like energy saving, use of renewable resources
and cutting waste and carbon emission
This is not just about environment protection
but also an essential strategy for the sustainability of the industry
For example, in the process of film production or game development
reducing electricity use
or using recyclable materials is one
Next is social influence
Entertainment industry can bring
positive social change by contents
that touch on important social issues
like climate change and human rights and spread awareness
It can help people understand environmental issues
through documentaries, films, or games
and for human rights issues as well
These content aren't simply for entertainment
but an important tool
for positive social influence
Third is for economic sustainability
By adopting business model that considers sustainability
media industry can use resources efficiently
and maintain a fair economic structure
For example, cutting costs by environment friendly production method
or fulfilling consumers' demand
for sustainable goods and services
can provide a new opportunity for profit
Lastly, firm's reputation management
Firms can perform social responsibility
through sustainability related activities
and through this, improve firm reputation
Today, consumers pay more attention
to firms' effort for sustainability
and this greatly affects brand image
Therefore, a firm adopting environment friendly policies
and putting effort into performing social values
to gain better reputation
is an essential business strategy
Then let's see how content, entertainment, and media firms
are performing ESG business
through a few case examples
First is Disney
Disney has set a goal that they'll achieve net-zero emission
For this, they are working on various environment friendly policies
and energy saving efforts
Disney also adopted policies
that strengthen diversity, equity, and inclusiveness
to form an environment where all employees have fair opportunities
and people of diverse backgrounds are respected
Next is Netflix
Netflix, along their effort to cut electricity use
has adopted green sets
to minimize the environmental effect in the production process
Also Netflix is constantly producing documentaries and films
dealing with social issues around the world
to spread awareness and promote positive change
Through this, they are taking social responsibility
and spreading social messages through content
Sony, as a part of their ESG management
has established 'Sony Environment Vision' that strengthened renewable energy use
Through this plan they are putting effort into cutting greenhouse gas emission
and building sustainable environment
Also Sony, for better media access
for social minority
are investing in various technological development
Through this, they are expanding access so that everyone can enjoy
Sony's content
Lastly, Warner Bros
Warner Bros are using energy efficient equipment
and promote electric vehicle use
as an effort to protect the environment
Not only that, they are running diversity and inclusiveness strengthening programs
that respect racial, gender, and cultural backgrounds
to form an environment
where all employees can be respected and have equal opportunities
Like this, entertainment, media, and content firms
are contributing to a better future by performing
ESG management, environment protection, and social responsibility
This effort plays an important role in
realizing firms' sustainable development and social values
beyond being just business management strategies
Then what change will ESG activity
bring to the content market in the future?
Let me explain how ESG activity influences content production
and consumption in five main topics
First is increase of environment friendly production
Using cloud based digital solution
energy use in data storage and management are reduced
Through this, the need for physical servers are decreased
and electricity consumption is minimized
Environment friendly approaches are playing
an important role in cutting cost
and forming sustainable production environment
Next is the increase of content with diversity and inclusiveness
Recently, demand for content dealing social issues is increasing
and storytelling with ESG values included are also strengthening
This is beyond simple entertainment
but means that content that
deliver social message and promote
positive change is increasing
Documentaries or movies dealing
human rights, climate change, or gender equality are an example
Third is that support for ESG content firm
is increasing
Brand loyalty of consumers to firms that are
environment friendly and socially responsible are increasing
Through this, firms performing ESG
can gain a better reputation compared to their competing counterpart
and this also contributes to long-term development of the firm
Fourth is strengthened investment to ESG friendly content
Content, entertainment, and media firms
are securing more investment opportunities
as they achieve ESG goals
Investors are more interested in firms with
sustainable business model
and this brings a positive influence
in firms' capital procurement and expansion
Last is content industry's innovation and enhanced competition
To create a sustainable production environment
virtual production technology, cloud based workflow
and AI based editing systems and such are being adopted
These technologies enhance production efficiency
and contribute to cutting carbon emission
Also, use of cutting edge technology
increases content quality
and cuts cost at the same time
In conclusion, ESG activity in content industry
is not just a trend
but brings a structural transformation across the whole industry
Environment friendly production methods, increase of inclusive content
and transition to sustainable business model
will lighten the future of the content market
I ask you, as digital content creator
to also think about your role for ESG
Thank you
Relationship between ESG and reputation
Why Reputation became Important Social media: A platform where you can glimpse into people's daily lives
Activism facilitated by social media The emergence of Gen Z, often referred to as digital natives
Relationship of ESG and Reputation Reputation is a key driver in accelerating a company's ESG responsibilities
ESG and Innovation
ESG Innovation Innovation is a way to perform ESG management well
3Rs: Replace, Reduce, Reuse & Recycle
Directly addressing the issues you create is also a part of ESG management and activities
ESG Examples in Entertainment
Disney: Aims to achieve carbon neutrality across all operations by 2030
Adopts policies strengthening diversity, equity, inclusiveness
Netflix Reduce electricity use, adopt green sets
Constantly produce documentaries or films dealing social issues
Sony Establish Sony environment vision strengthening renewable energy use
Invest in technology development for better media access of social minority
Warner Bros Promote energy efficient equipment and electric vehicle use
Run diversity and inclusiveness strengthening programs that respect racial, gender, and cultural backgrounds