Report · January 1, 2010

MTG Corporate Responsibility Report 2010

Summary

The 2010 Modern Responsibility report presents Modern Times Group’s first GRI‑aligned disclosure, expanding the reporting perimeter to encompass all subsidiaries and leased assets that employ staff. It establishes a comprehensive materiality analysis, stakeholder survey, and a crisis‑support team, framing corporate responsibility as a strategic pillar that underpins responsible broadcasting across MTG’s television, radio and digital platforms. The document’s thesis is that transparent governance, measurable sustainability targets, and inclusive social initiatives can drive long‑term value for both the business and its broader stakeholder community. Governance is overseen by a seven‑member board—six independent non‑executives, five men and two women—supported by audit, remuneration and Modern Responsibility committees. The report sets concrete performance goals, including training 50 % of relevant staff on compliance by the end of 2010 and achieving full coverage by 2012, reducing per‑employee CO₂ emissions by 5 % versus the 2009 baseline by February 2012, and extending a supplier self‑check system to half of MTG’s partners. Parallel gender‑equity objectives launch a women‑in‑leadership network in Sweden and benchmark gender‑pay gaps in Scandinavia by June 2011 and globally by February 2012. Operational outcomes for 2010 demonstrate strong social and environmental stewardship. MTG achieved 100 % subtitling/closed‑captioning for Swedish output, delivered 110 hours of compliance training, recorded only 21 internal complaints and incurred no fines. Philanthropic activity leveraged media assets to donate roughly 111 million SEK of airtime and raise over €58 million for health, disaster relief and child‑health campaigns across more than 20 countries. The United for Peace football tournament engaged 130 youths from 12 nations, with 88 % reporting new friendships and a near‑universal endorsement of sport as a conflict‑resolution tool, while the Playing for Change initiative secured a Social Capitalist award and raised 160 k SEK. Environmental performance shows a 7 % rise in total greenhouse‑gas emissions to 15,032 t CO₂e, driven mainly by facility energy (5,496 t) and business travel (8,727 t), raising per‑employee emissions to 5.6 t CO₂e. In response, MTG plans greener travel options, country‑specific green‑action lists, 80 % employee training in “green thinking,” and supplier CO₂ assessments to meet the 5 % per‑employee reduction target. The report thus captures a global, multi‑segment (broadcasting, digital, philanthropy, sports) snapshot of MTG’s 2010 responsibility performance and its forward‑looking commitments through

From the report

report this About Let us introduce MTG’s third Modern Responsibility report. This is our first report that summarises our corporate responsibility progress world wide following the Global Reporting Initiative. This is our first corporate responsi⁻ the 50% acquisition was finalised in February Highlights 2010 bility report that follows the Global 2010 and the figures would therefore not co- Reporting Initiative (GRI) fram- ver the whole year. TV broadcasting network We produced our first GRI report and ework, although this is actually our CTC Media and the Finnish radio station set concrete targets for our CR work third annual Modern Responsibility Radio Nova are excluded as MTG doesn’t report. Our previous report was published on exercise exclusive control over these entities. We started our own foundation MTG 12 May 2010 and is available on mtg.se. The boundary has changed from the United for Peace This report summarises our corporate previous report – the CDON Group has been responsibility progress and developments on excluded from the environmental reporting We completed a Modern Responsibility a calendar year basis, from 1 January until for Q4, as they were demerged from MTG in tour to engage with all local MTG 31 December 2010. We have used the GRI Q4.

roup has been responsibility progress and developments on excluded from the environmental reporting We completed a Modern Responsibility a calendar year basis, from 1 January until for Q4, as they were demerged from MTG in tour to engage with all local MTG 31 December 2010. We have used the GRI Q4. The emission factors for MTG’s environ- companies boundary protocol and completeness princi- mental impact have changed slightly from the We conducted a materiality analysis ple to define the report boundary, to reflect previous report and the due to improved data and stakeholder survey to further MTG’s significant economic, environmental collection processes the 2010 environmental engage with our stakeholders and social impacts. We have addressed and data is more accurate than in 2009 – more included the full value chain from customers information is available on p.43-44. We started supporting Playing for to suppliers in our dialogues to help us This report focuses on corporate respon- Change’s work with underprivileged define boundary and ensure completeness. sibility issues that were defined as relevant children Included in the reporting scope are by stakeholder engagement in 2010 (see We established a Crisis Support Team operations over which we have full con- p.14). We have also included information on to be able to act fast in case of an trol, as well as all subsidiaries and leased smaller scale social and environmental initia- emergency facilities unless stated otherwise. Also tives that we have done locally in the various included are GES Media Holding in the countries of operation.

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rmation on to be able to act fast in case of an trol, as well as all subsidiaries and leased smaller scale social and environmental initia- emergency facilities unless stated otherwise. Also tives that we have done locally in the various included are GES Media Holding in the countries of operation. The GRI index of this We submitted our first public response Czech Republic where MTG owns 50% of report can be found on p. 46. MTG has self- to the Carbon Disclosure Project “I’VE the company and Viastrong in Ukraine with declared that this report meets the criteria Our Green Ambassadors trained 56% NEVER an 85% ownership. for reporting level C of GRI’s G3 Guidelines. of all permanent employees in environ- STOPPED Countries where we only operate pay- The report compliments the Annual mental issues TV channels on other providers’ platforms Report and the Modern Responsibility pages DREAMING have been excluded from the reporting, on www.mtg.se, where you can follow our MTG Radio completed their environ- ” because we don’t have employees or facilities progress and recent activities. mental ISO 14001 certification in these countries, and thus they don’t have We really want to hear your thoughts, ALICE KINGSLEY (MIA WASIKOWSKA) significant impact on MTG’s sustainable be it regarding this report or our work with ALICE IN WONDERLAND, 2010 development. The Russian digital satellite TV Modern Responsibility. Let us know what you WALT DISNEY STUDIOS MOTION PICTURES. platform Raduga is also excluded because think at [email protected].

responsibility It is said that with great power, comes great responsibility. As one MTG United for Peace was a first step in what we hope will be a About this report p.2 Let us entertain you p.28 of Europe’s leading broadcasters, we recognise and respect the long history of charitable work that our stakeholders would like to fact that we wield a significant amount of influence. During 2010 we see us pursue. MTG United for Peace brings together disadvan- Words from our CEO • Compliance with regulations have tried to assess how we can best utilise this influence for the taged children from all backgrounds through the universal language p.5 • Protecting minors benefit of all of our stakeholders and the world around us, and which of football, to teach them about peace, tolerance and respect. We specific areas we should be concentrating on in the future. believe that children both do and will need to be well equipped in All about us • Online safety Our numerous stakeholder groups represent a diverse number of these areas, to face the challenges of the future. Because of this, we p.6 • Accessibility industries, businesses, organisations and individuals. In 2010 we also support Playing for Change; to help children play their way to a • Changes 2010 • Positive programming have, both through ongoing dialogue and through our Stakeholder better tomorrow. • MTG countries In the spotlight Survey, taken the views of all our stakeholders into account as part of As an integrated free-TV and pay-TV operator, we benefit from a mix • Operational structure p.35 our continued work.

e, both through ongoing dialogue and through our Stakeholder better tomorrow. • MTG countries In the spotlight Survey, taken the views of all our stakeholders into account as part of As an integrated free-TV and pay-TV operator, we benefit from a mix • Operational structure p.35 our continued work. This dialogue, and other assessments, which in- of advertising and subscription revenues, as well as the synergies, clude a materiality analysis and benchmarking, have strengthened our which arise from our competitive business model. Broadcasting is We are here… <sub>p.</sub> • Corporate giving conviction that the focus of our Modern Responsibility work, which our core business and therefore our core responsibility. During 2010 10 • More than kicking a ball is based on the four pillars of Business, Broadcasting & Marketing, we have continued our work on areas like anti-corruption, compliance • Governance • Playful help for children Colleague and Community Responsibilities, should be focused on and equality, and we have also set short, middle and long-term goals fair employment terms, equality, anti-corruption and charity. for what we aim to achieve in these areas. These goals have, and will • Mission statement Making the world a As we continue our expansion into Emerging Markets, we are continue to be, assigned to their respective departments. By doing • Key responsibility areas responsive to the risks involved, and will work actively to combat cor- so, we hope to increase measurability and accountability of their • Engaging with our stakeholders greener place <sub>p.</sub> ruption, human and labour rights abuse, as well as pollution.

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