JCDecaux unveils its Climate Strategy aimed at achieving Net Zero Carbon by 2050

JCDecaux SE (Euronext Paris: DEC), the number one outdoor advertising company worldwide unveils its Climate Strategy which further proves its commitment to reducing its carbon footprint across its entire value chain. The strategy is based on three principles: Measure, Reduce, Contribute. It aims for Net Zero Carbon by 2050 (scopes 1, 2, and 3)*. This initiative reaffirms the JCDecaux Group's commitment to an active participation in the fight against climate change by adopting eco-responsible practices and promoting sustainable innovation in its business practices.

JCDecaux, a service-driven and sustainable media

Since its very beginning in 1964, JCDecaux has placed sustainability and efficiency at the heart of its business model. The Group created a Sustainable Development and Quality Department in 2007, and in 2014 set out an ambitious Sustainable Development Strategy. JCDecaux designs, installs, and maintains light infrastructure (bus shelters, street furniture, self-cleaning public toilets, self-service bicycles, etc.) in public spaces and travel hubs thanks to the financing provided by the advertising for brands and companies displayed on that infrastructure. JCDecaux street furniture provide innovative and free services for millions of people around the world, as well as for local authorities and transport companies, based on resource-efficient management. This business model is virtuous in three ways: economically, ecologically, and socially.

JCDecaux, committed to Net Zero Carbon

To accelerate the impact of its initiatives in support of a low-carbon society and in response to the climate emergency, JCDecaux discloses today its Group-wide Climate Strategy. Following a pilot scheme in France in 2021, that plan was reviewed by EY (Independent Third Party). The aim of that strategy is to align with the objectives of the Paris Agreement (limiting the increase in the average global temperature to 1.5°C above pre-industrial levels) and to achieve Net Zero Carbon by 2050, taking into account the entire value chain of the company.

To achieve this, JCDecaux plans to follow a roadmap based on Science-Based Targets Initiative (SBTi) that are backed up by scientific data. In late 2022, the Group signed a pledge to achieve those SBTi goals, and JCDecaux has been awarded the "Committed" label in recognition of its commitment to a low-carbon strategy. Over the course of 2023, JCDecaux plans to submit a report on its progress towards those SBTi goals for review and validation.

A climate strategy in line with the Paris agreement

The road to Net Zero Carbon by 2050 will be marked by intermediate stages along the way.

• Objectives for 2030:
  • carbon emissions reduction scopes 1+2 (market-based**): at least 60% compared to 2019 levels.
  • carbon emissions reduction scope 3: at least 46% compared to 2019.
• Objectives for 2050:
  • carbon emissions reduction scopes 1+2 (market-based): at least 90% compared to 2019.
  • carbon emissions reduction scope 3: at least 90% compared to 2019.

A Climate Strategy based on three complementary principles: Measure, Reduce, Contribute.

1. Continuously measuring and reporting

JCDecaux measures its greenhouse gas emissions taking into account the three emissions scopes set out in the GHG (Greenhouse Gas Protocol). For 2022, JCDecaux's total carbon footprint was 210.4 Kteq CO2 (scopes 1, 2, and 3), which represents a reduction of 27.1% compared to 2019.

2. Continuous reduction

JCDecaux has drawn up a roadmap that it will follow in order to reduce its overall carbon impact based on three main drivers:

Street furniture: reduce the associated carbon emissions to improve the environmental footprint of such installations, by:

• Always opting for eco-designed street furniture by choosing low-carbon materials in their design and operation, and strengthening responsible innovation to reduce environmental impact.
• Promote the circular economy by increasing the use of refurbished street furniture. Refurbishing a bus shelter reduces emissions by 69% compared to manufacturing a new one.
   

Energy: reduce emissions from all our activities (street furniture, vehicles, buildings) by implementing the following initiatives:

• Minimise the electricity consumption of our street furniture, by replacing old lighting systems with newer and more environmentally-friendly technologies such as LEDs, which are more energy-efficient (LED retrofit), solutions to reduce the light intensity (dimming) or even temporarily switch off the power supply at certain times, as well as rationalized management of the size of small digital displays. These are many of the ways in which JCDecaux will improve the energy efficiency of its street furniture.
• Maintain 100% renewable energy coverage.
• Replace our fleet of company cars and vehicles with “low emissions” models.
• Continue equipping our offices and premises with building control and automation systems.
   

Travel: to reduce their environmental footprint, optimise our employees' personal travel (home-work commute) and business trips:

• Promote alternative modes of transport such as car-pooling, public transport, or cycling.
   

3. Contribute now

In addition to the reduction measures already implemented in its operations and value chain, JCDecaux wishes to contribute to the development of qualitative projects aimed at reducing and/or capturing carbon emissions beyond our value chain. This policy stems from JCDecaux’s desire to participate in decarbonisation on a global scale and to contribute to the sustainable development goals set out by the United Nations, of which JCDecaux has been an official partner since January 2023. JCDecaux will later this year outline its contribution strategy.

Jean-François Decaux, Chairman of the Executive Board and Co-Chief Executive Officer of JCDecaux, said: "One year on from unveiling our ESG 2030 roadmap, today we are proud to back up that initiative by presenting a proactive climate strategy geared towards the goal of “Net Zero Carbon”. Reducing our environmental footprint is one of JCDecaux's long-standing commitments. Our business model resonates with the Green Taxonomy, as nearly 50% of our 2022 revenues are aligned with this European regulation. And our efforts are showing results: between 2019 and 2022, we reduced our Group-wide greenhouse gas emissions by 27% in terms of scopes 1, 2, and 3. As the world leader in our business sector, this new climate strategy demonstrates JCDecaux's determination to play an active role in the collective response to the challenges of climate change and to make outdoor advertising a driver of the ecological transition. JCDecaux will continue to work with all our stakeholders and to support those involved in public and private procurement to ensure that it becomes a massive and effective sustainable development driver. This climate strategy was developed through a participative approach within the Group and all our employees work every day towards it. It will be at the heart of our service-driven and sustainable business model."

^{* Scope 1: Direct emissions
Resulting from the manufacturing of products or the combustion of fuel for company vehicles (natural gas, oil, etc.)​
Scope 2: Indirect emissions
Associated with energy consumption that does not directly pollute (electricity, etc.)​
Scope 3: Other indirect emissions
Linked to the rest of the company's activities (procurement, transport, end-of-life cycle, employee travel, etc.)​}

^{** Market-based
Method of calculating CO2 emissions linked to electricity consumption, based on emissions factors associated with the supplier from which the company buys its electricity. Emissions are calculated on the basis of the electricity that the organization chooses to purchase, often through negotiated contracts or instruments such as Renewable Energy Certificates (RECs).}