Transcription
2019 CORPORATE SOCIALRESPONSIBILITY UPDATE
Table of Contents3LETTER FROM OUR EXECUTIVE CHAIRMAN21CONTENT & PRODUCTS4OUR BUSINESS26SOCIAL IMPACT5OUR APPROACH AND GOVERNANCE32LOOKING AHEAD7ENVIRONMENT33DATA AND PERFORMANCEFY19 Highlights and Recognition. 3412WORKFORCE18SUPPLY CHAIN LABOR STANDARDSFY19 Performance on Targets. 35FY19 Data Table. 36Sustainable Development Goals. 39Global Reporting Initiative Index. 40IntroOur Approach and GovernanceEnvironmentWorkforceSupply Chain Labor StandardsContent & ProductsSocial ImpactLooking AheadData and Performance2
LETTER FROM OUR EXECUTIVE CHAIRMANthrough our Disney Aspire program, our nation’smost comprehensive corporate educationinvestment program, which gives employees theability to pursue higher education, free of charge.This past year, more than half of our 94,000-plushourly employees in the U.S. took the initial step toparticipate in Disney Aspire, and more than 12,000enrolled in classes. We believe education is the keyto opportunity and by enabling our employees topursue their educational goals, we help to put theircareer goals within reach.ROBERT A. IGER,Executive Chairman,The Walt Disney CompanyAt Disney, we are proud to be one of the mostadmired companies in the world, respectednot just for what we create, but also for how weconduct ourselves as responsible citizens. Tothis end, our measures of success include ourimpact on the environment and efforts to protectour planet, how we operate our businesses, ourcontributions to local communities and otherworthy causes, the value we place on diversity andinclusion, and our commitment to the well-beingand advancement of our employees.Our ability to do good in the world starts with ourpeople. They are our most important assets, andwe are committed to doing what we can to enabletheir success, while celebrating and promotingtheir unique talents and perspectives. We continueto invest in them and in their futures, most notablyIntroOur Approach and GovernanceWe’re also committed to ensuring that morewomen, minorities, and other underrepresentedgroups have the chance to contribute inmeaningful ways, in all areas of our business.Diversity and inclusion remains a top priorityfor our company, and in 2019, we launchedand deepened our investment in a number ofprograms intended to expand opportunitiesfor underrepresented storytellers in film andtelevision. We strengthened our internal networksfor diverse communities within Disney’s workforceas well, and we will continue to support theseand other similar endeavors. It’s vitally importantthat our teams, along with the stories we telland products we create, reflect the diversity ofthe world in which we live, because that is howwe best serve our consumers and also becauseit helps us to attract an even more diverse poolof talent. And the variety of perspectives andexperiences makes for a better creative processand a stronger team overall.EnvironmentWorkforceAt Disney, we also strive to have a positive impactin our communities and on the world. This past year,continuing a cause that dates back to Walt Disneyhimself, we took the next steps in our 100 millioncommitment to deliver comfort and inspiration tofamilies with children facing serious illness using thepowerful combination of our beloved charactersand our expertise in creativity and technology. LastApril, Walt Disney Imagineers unveiled the firstsuite of experiences, murals, and interactive art atTexas Children’s Hospital in Houston, the largestchildren’s hospital in the country, and efforts areunderway to roll out the program in additionalhospitals in the U.S. and around the globe.In 2020, the Disney Conservation Fund willcelebrate its 25th anniversary. Over the past quartercentury, the Fund has directed 100 million tosave wildlife and protect our planet, awardinggrants to nonprofit organizations and leadingconservation efforts around the globe. We’ve alsoinspired millions of people to take action in theircommunities. For example, in 2019, in honor ofDisney’s The Lion King, we launched the “Protectthe Pride” global conservation campaign, focusedon protecting and revitalizing the lion populationacross Africa by raising awareness and contributing 3 million to the Wildlife Conservation Network’sLion Recovery Fund.low-carbon fuel sources, renewable electricity, andnatural climate solutions. I’m particularly proud ofthe new 270-acre, 50 -megawatt solar facility thatwe brought online in Orlando. This new facility isable to generate enough clean energy to powertwo of the four theme parks at Walt Disney World,reducing tens of thousands of tons of greenhousegas emissions each year.Our progress is addressed in more detail in thisreport. While we have made great strides in manyareas, there is still much work to be done andmany things to accomplish. We must continuallypush ourselves and our company further. I havepersonally challenged our leaders across Disneyto apply the same creativity, ingenuity, anddedication they bring to our world-class media andentertainment businesses to improve our programsand services and to advance our environmental andsocial commitments – because our achievements inthese areas are equally important to the success ofour company and to the world we live in.We remain grateful for the strong support of ouremployees, stakeholders, and guests, and lookforward to continuing to work together on behalfof these and other worthy causes.Sincerely,Also last year, we advanced our environmentalcommitments through a mix of investments insustainable design innovations, energy efficiencies,Supply Chain Labor StandardsContent & ProductsSocial ImpactLooking AheadData and Performance3
OUR BUSINESSThe mission of The Walt Disney Company is to entertain, inform, and inspire people around the globe through the power of unparalleled storytelling,reflecting the iconic brands, creative minds, and innovative technologies that make ours the world’s premier entertainment company. 1STUDIO ENTERTAINMENTPARKS, EXPERIENCES, AND PRODUCTSMEDIA NETWORKSDIRECT-TO-CONSUMER & INTERNATIONAL1 For convenience, the terms “Company”, “Disney,” “we,” and “our” are used throughout this report to refercollectively to The Walt Disney Company and the subsidiaries through which businesses are conducted.The acquisition of Twenty-First Century Fox, Inc. (subsequently renamed TFCF Corporation and referred toas “TFCF”) closed in March 2019.IntroOur Approach and GovernanceEnvironmentWorkforceSupply Chain Labor StandardsContent & ProductsSocial ImpactLooking AheadData and Performance4
OUR APPROACH AND GOVERNANCECORPORATE SOCIALRESPONSIBILITY AT DISNEYFrom our beginnings as a cartoonstudio in the 1920s to today, Disneyproudly continues our legacy ofcreating world-class stories andexperiences for every member ofthe family.At Disney, we are committed to operating anhonorable and socially responsible company.We believe corporate social responsibility(CSR) represents a long-term investmentthat serves to strengthen our operations andcompetitiveness in the marketplace, enhancerisk management, attract and engage talentedemployees, and maintain our reputation. OurCSR strategy plays an important role in thecurrent and future success of our company. Italso serves to embolden our workforce, enrichour planet, and positively impact peoplearound the world.As a diverse and global company operatingin many industries, we must consider awide and complex set of CSR issues. Manyof the environmental and social issuesmost significant to our business and ourstakeholders are discussed in this report,including environmental sustainability, natureconservation, workforce practices, diversityand inclusion, supply chain labor standards,content and products, volunteering, andcharitable giving. Beyond this core work,we continue to build the company’s legacyof providing comfort to those in need, andinspiration and opportunity for those who wantto improve their world.Our approach to corporate social responsibilityis built upon the company’s long and enduringlegacy of engagement in our workplacesand communities and our actions to protectthe environment. We continue to believein operating our company with the higheststandards of integrity.IntroOur Approach and GovernanceEnvironmentWorkforceSupply Chain Labor StandardsContent & ProductsSocial Impact“We continuously challengeourselves to ensure that ouractions, commitments, andinitiatives are directed to ourareas of greatest impact andlive up to both the heritageand vision of our company.”Christine McCarthy,Senior Executive Vice Presidentand Chief Financial OfficerLooking AheadData and Performance5
GOVERNANCECorporate GovernanceWe are committed to operating our businesseswith the utmost integrity and adoptinggovernance policies that promote thethoughtful and independent representationof our shareholder interests. The Board ofDirectors has adopted Corporate GovernanceGuidelines which address, among otherthings, the composition and functions ofthe Board Directors, independence, stockownership by and compensation of Directors,management succession and review, Boardleadership, Board committees, and selectionof new Directors.Our Board of Directors is also expected touphold our Code of Business Conduct andEthics for Directors. Similarly, the company’sStandards of Business Conduct areapplicable to all employees of the company,including named executive officers. Weregularly engage our leaders and employeeson these Standards through training andother forms of communication.More information on our CorporateGovernance practices is available in our2020 Proxy Statement.IntroOur Approach and GovernanceCSR OversightCorporate social responsibility at Disney isoverseen directly by our Chief Financial Officer,in close coordination with our Chief ExecutiveOfficer, Chief Human Resources Officer,General Counsel, and each of our businesssegment leaders. These individuals aresupported by a network of teams addressingpolicy development, strategy, programmanagement, business integration, andcompliance. Executive leadership councils arealso in place to guide key issues. For example,the internal Environmental GovernanceCouncil, comprised of executives from acrossour businesses and key corporate functions, isaccountable for overseeing the integration ofenvironmental considerations into our businessoperations and strategy, and for bolsteringprogress toward our goals and policies.We review environmental, social, andgovernance (ESG) developments on anongoing basis to ensure we are addressingrelevant issues. This analysis is underpinned byassessments of business impact, the interestsof external stakeholders, and opportunities topositively impact society. Our assessment ofthe most salient issues forms the foundationalbasis of our CSR strategy and the content ofour annual CSR reporting.EnvironmentWorkforceIn addition to this report, many ESG issuesare addressed in policies or disclosures onour corporate website. These include bothvoluntary disclosures, for example our policiesrelated to political transparency, and requireddisclosures. These policies and disclosures canbe accessed online.We frequently engage with stakeholdersin ongoing dialogue, including withemployees, business associates, shareholders,governmental and nongovernmentalorganizations, and consumers. We believethat working with stakeholders who representdiverse perspectives enhances our ability toidentify opportunities and find solutions tosome of our most pressing challenges.DIVERSITY ON OUR BOARDThe Board of Directors of The Walt DisneyCompany is currently comprised of ninedirectors, recruited to provide a rangeof talents, experiences, and skills. Onecriteria with which the Board evaluatesnew members is “the extent to which theprospective nominee helps the Boardreflect the diversity of the Company’sshareholders, employees, customers andguests, and the communities in which itoperates.” Among our current Board, ourindependent Lead Director and all four ofour Board committee chairs are women.We report on ESG matters to the Board ofDirectors and its committees. These reportsinclude general assessments of priority ESGissues for the company and more specificreports on individual issues.Supply Chain Labor Standards67%Ethnic/GenderDiversity4 of 9 directors are women3 of 9 directors are racially/ethnically diverseContent & ProductsSocial ImpactLooking AheadData and Performance6
EnvironmentOur commitment to environmental stewardship focuseson using resources wisely and protecting the planet aswe operate and grow our business. Scarcity of naturalresources, threats to ecosystems and biodiversity, andclimate change are serious environmental issues. Thesechallenges demand fundamental changes in the waysociety, including the private sector, operates. We strive toreduce greenhouse gas emissions, minimize waste, andconserve water resources.Solar array at Walt Disney WorldIntroOur Approach and GovernanceEnvironmentWorkforceSupply Chain Labor StandardsContent & ProductsSocial ImpactLooking AheadData and Performance7
ENVIRONMENTAL SUSTAINABILITY2Reducing Greenhouse Gas EmissionsTARGET: By 2020, reduce net emissionsby 50% from 2012 levels3Disney Transportation Cast MemberKenneth O’Dell showcases the EcoCoach sticker on the back of a WaltDisney World Resort bus that ispowered by renewable fuel.In 2019, we reduced our net greenhousegas emissions by 47% from 2012 levels. Weachieved this reduction through a mix ofinvestments in sustainable design innovations,energy efficiencies, low-carbon fuel sources,renewable electricity, and natural climatesolutions. Examples of key actions in 2019include the following:Sustainable Design: We began developmentof the company’s new New York City campus,which will include more than 1 million squarefeet of office and production space. Weare aiming for LEED Platinum, a globallyrecognized sustainable design certification, aswell
honorable and socially responsible company. We believe corporate social responsibility (CSR) represents a long-term investment that serves to strengthen our operations and competitiveness in the marketplace, enhance risk management, attract and engage talented employees, and maintain our reputation. Our CSR strategy plays an important role in the current and future success of our
