2016-2017 Materiality Assessment

Our approach: We reinforce our commitment to ensuring our data is protected, especially in light of the globally-recognized risks to data security overall. In speaking with our stakeholders, we recognize a particular interest in the processes used to conduct market research through mobile and digital sources. Other rising areas of stakeholder interest center around validation and ethics issues related to new, broadly-used research techniques.

We recognize our critical responsibility to scrupulously manage the data we collect. This includes, but is not limited to, the protection of privacy for our clients, employees and the consumers we measure; securing our data so that it is accessible only to authorized personnel for authorized purposes; and ensuring that our data is of the highest quality practicable. This is fundamentally linked to Nielsen’s role as a trusted provider for our clients and to our position as an independent measurement provider for the industries we serve. Beyond this 90-plus year commitment, we follow closely consumer attitudinal, legal and regulatory changes around the collection, use, and access of data.

Goal: Throughout 2017 we continue to adjust our policies, organizational responsibilities, and operating procedures as needed to respond to new laws and regulations including the European Union (EU)’s General Data Protection Regulation (GDPR).

Update from 2014-2015 assessment: In 2016, we conducted and completed mandatory training for employees on “Global Information Security and Privacy Essentials.” We also harmonized Nielsen’s global internal privacy and data use policies, improved our data mapping process, enhanced our internal privacy resource website and online discussion forum, and designated additional internal privacy specialists in key countries around the world.  To further our efforts in building an industry-leading Cyber Security program, we hired our first Global Chief Information Security Officer (CISO). More information about our overall approach to Data Privacy, Security & Integrity can be found in the “Our Clients” section of our Nielsen Global Responsibility Report

We also updated Nielsen’s public-facing description of our privacy practices to reflect our new policy described in our updated privacy statement.  

Learn more: More information about our approach to Data Privacy, Security & Integrity can be found in the “Our Clients” section of our Nielsen Global Responsibility Report. Nielsen’s current privacy practices are described in our updated public-facing privacy statement.

Our approach: Stakeholders expressed appreciation for Nielsen’s existing community efforts, alliances and partnerships through initiatives like Nielsen Cares, our global employee volunteer program, and Data for Good, through which we support initiatives such as Project 8, the data platform for forecasting developing human needs.

Nielsen’s community impact encompasses our role as a good corporate citizen and employer, our engagement in skills-based volunteerism, and our participation in in-kind giving with nonprofits. We also deploy our research expertise to provide insights to community leaders. We are aware that the data we collect from individuals in the community must be protected and used carefully no matter what the circumstances; we understand our responsibility relates to ensuring the representation of all communities.

Goals: Our goals in this area are focused on the long-term; from 2016 through 2020, our goal is to provide $50 million in value through pro bono projects and skills-based volunteering, including the donation of Nielsen data, and mobilizing our associates to volunteer a cumulative total of at least 300,000 hours in the communities where we live and work around the world. We have created a new Nielsen Foundation to support associate volunteering and giving, stakeholder support, and Data for Good and nonprofit grants.

Update from 2014-2015 assessment: Data is the foundation of our work and we believe it should be fundamental to advance social good. In our last non-financial materiality assessment, stakeholders mentioned an interest in learning more about how we are furthering our efforts to make a positive impact on the communities where we live and work, particularly through our global Nielsen Cares employee volunteer efforts and our pro bono data donations to nonprofits in key priority areas. In order to answer stakeholders’ questions about the impact of these efforts, we provided additional stories through a number of channels, including “Responsibility & Sustainability” features on Nielsen News Center, our 2016 Global Responsibility & Sustainability infographic, and the “Our Communities” section of our Nielsen Global Responsibility Report. Our community impact efforts through Nielsen Cares reached record highs in 2016, engaging more than 23,000 employees through our annual Nielsen Global Impact Day (NGID) as well as through ongoing skills-based and hands-on volunteer opportunities. This is one part of our effort to enable our associates to personalize their Nielsen Employee Experience, providing unique ways to be themselves, make a difference, and grow with us.

We’ve committed to enhance the use of data to increase impact in reducing discrimination, easing global hunger, promoting STEM education and building stronger leadership in the social sector through our Data for Good initiatives such as Project 8, a global, digital information community where people come together to share, compare, analyze and discuss data and perspectives on sustainable development and evolving human needs. Nielsen is a significant contributor towards Project 8, based at The Demand Institute, providing leadership resources, data, and insights. We partnered with Accenture, Salesforce, and the UN Foundation to develop the Project 8 platform. Data for Good also includes our donation of data to the University of Chicago, in support of academic and social research. Through the University of Chicago, eligible academic researchers can apply to access a data warehouse of Consumer Panel Data and Retail Scanner Data to advance their research.

In 2015, we established the Nielsen Foundation to strengthen Nielsen communities by enhancing their ability to use data for social good, and to give back to our communities in ways that respond to social issues of concern to Nielsen associates and other stakeholders. The Foundation, funded by a one-time receipt of proceeds from a litigation settlement, has three main objectives: to encourage Nielsen associates to volunteer in their communities and engage in philanthropic activities, to enhance Nielsen’s relationships and its reputation as a good corporate citizen by enhancing the use of data and measurement to increase social impact, and to build knowledge through engaging in Foundation initiatives.

Learn more: More information about our approach to Community & Social Impact can be found in the “Our Communities” section of our Nielsen Global Responsibility Report.

Our approach: In line with our own expectations, our stakeholders expect Nielsen to manage and monitor the performance of our suppliers. We are committed to holding our suppliers to high standards in relevant environmental, social, and governance (ESG) areas, including human rights, integrity, diversity, ethics, and responsible business practices.

We have strengthened our overall approach to supply chain sustainability with a formal program, Nielsen Source Green, which was launched in 2016 to incorporate environmental, social and governance (ESG) performance in the management of our supply chain. The first year of the program completed in 2016 and focused on putting in place foundational elements aligned with best practices in sustainable sourcing including: establishing a system to measure and manage our suppliers’ ESG performance; embedding sustainability management in sourcing business processes; and connecting Nielsen’s program to leading industry-shaping collaborations.  In 2017 and 2018, Nielsen plans to strengthen our ESG supply chain management even further at both the supplier level and product/service category level with specific, measurable key performance indicators and a track record of positive improvement over time. We recognize that sustainable supply chain management is one of the key ways that our company is delivering a societal impact that extends beyond a benefit to Nielsen.  Nielsen’s purchasing power can be a powerful market force that contributes to addressing business challenges as well as social and environmental challenges.

Goals: Our current goals in this area are to include up to 100 of our top suppliers–or 50% of total sourceable spend with suppliers–in our supply chain sustainability program by 2018, up from more than a third of our spend in 2016. We have updated our Supplier Code of Conduct, and training will be provided to 100% of the Nielsen Strategic Partnerships and Sourcing Team as well as to 75% of our top strategic suppliers. We also plan to measurably raise awareness about our supply chain sustainability program internally through various communications channels throughout 2017 and beyond. Finally, we plan to establish an Environmentally Preferable Purchasing (EPP) policy and determine metrics to measurably increase our positive ESG impacts in each of the following areas of our spend: travel accommodations, air and ground transport, computers and office equipment, paper and printing, cleaning/janitorial services, event planning, and business process outsourcing (BPO) work.

Update from 2014-2015 assessment: In recognition of our goal to continue to improve the responsibility and representation of our suppliers, Nielsen’s diverse supplier spend in 2015 reached $75 million, representing a 24% year-over-year increase and 8% of Nielsen’s total sourceable spend. We also continued the work of our Nielsen Supplier Diversity Academy, started in 2014, which provides education and counsel to help diverse businesses prosper. These collaborations have resulted in over 200 jobs being created at minority-owned firms as a direct result of doing business with Nielsen. To give diverse businesses the tools they need to grow, the supplier diversity team has developed a slate of workshops that tap the expertise of Nielsen’s senior leaders across a variety of topics to share best practices and key strategies with the goal of helping diverse suppliers incorporate these lessons into their own businesses.

In 2016, Nielsen Source Green’s inaugural year, we asked 57 of our most strategic suppliers to complete an assessment to benchmark supplier ESG performance. Ninety-one percent of those suppliers participated, which exceeded the ambitious 70% target set for the first year of most programs. Among the suppliers who responded, 31% of them were evaluating their ESG performance for the first time. Additionally, ESG criteria were updated or added in the following sourcing processes: RFPs, contract language, and periodic business reviews and compliance disclosure. We updated our Supplier Code of Conduct to reflect our current expectations for supplier accountability. We have also developed a complementary toolkit of capacity-building resources and training to assist suppliers in meeting these requirements on an ongoing basis.

To demonstrate our commitment to leadership in supply chain sustainability, Nielsen joined the Sustainable Purchasing Leadership Council (SPLC) and the Electronic Industry Citizenship Coalition (EICC), as well as adapting the EICC Code of Conduct as the basis for Nielsen’s Supplier Code of Conduct. We are also a founding member of the Global Impact Sourcing Coalition, which focuses on innovative sourcing efforts to build a more inclusive global supply chain and meet our business needs while providing a pathway for workers out of extreme poverty.  Finally, Nielsen was represented on the technical advisory group for ISO 20400, the new ISO Sustainable Procurement Standard. More information about our overall approach to supply chain sustainability is included in the “Supply Chain” section of our Nielsen Global Responsibility Report.

Learn more: More information about our approach to Supplier Accountability can be found in the “Supply Chain” section of our Nielsen Global Responsibility Report.

Our approach: In speaking with our stakeholders, we have identified energy, business travel and waste (particularly electronic waste, or e-waste, and paper waste) as the three largest environmental issues for Nielsen. These three distinct issues generally reflect the material environmental issues of other Professional Services firms. We recognize that Nielsen has an opportunity to expand on our commitment to reduce and maximize these and other aspects of our overall environmental footprint. Analysis continues to fully quantify and report the significance of each of these issues for Nielsen.

Nielsen’s energy use is both direct (consumed at our company-owned or rented offices and data centers) and indirect (shared and/or contracted data center use). Water use is not significant at this point in terms of Nielsen’s direct operations; however, it is recognized as an important societal issue. External stakeholders asked for more information about our greenhouse gas emissions (especially Scope 3), as well as energy use and reduction efforts related to our data centers. They have also requested that we set environmental goals and targets with an expanded data set to reflect our complete global footprint. By broadening our data collection efforts and working to improve our own environmental performance, we hope to deliver broader benefits to the planet and society as a whole, doing Nielsen’s part to address issues related to climate change. In terms of our Scope 3 emissions reduction efforts specifically, all Nielsen associates are encouraged to exhaust all travel alternatives such as video conferencing, virtual meetings, and conference calls before requesting permission to travel. Travel alternatives are systematically highlighted in our online booking tool with automated pop-up messaging and links to video conferencing details. Nielsen also prioritizes conducting business with socially responsible travel suppliers; we do this by tracking, monitoring and engaging our travel suppliers on their environmental, social and governance (ESG) performance through a third-party online platform.

Goals: By 2020, our goal is to reduce our global energy use per square foot of facility space by 5%. We are using 2015 North American data as a baseline for this as we expand our data collection efforts globally. Additionally, in 2018, Nielsen plans to join the Carbon Disclosure Project (CDP) Supply Chain Program to manage the risks and opportunities associated with climate change in a standardized way across our supply chain. This participation will help Nielsen improve its supply chain transparency and environmental performance and facilitate our suppliers gaining opportunities from increased energy efficiency, leading to decreased costs and better preparedness for climate-related risks.

Update from 2014-2015 assessment: In our 2014-2015 non-financial materiality assessment, our stakeholders challenged us to do more in the areas of environmental management and reporting. To address this opportunity, we took a number of actions that are highlighted throughout the “Our Environment” section of the Nielsen Global Responsibility Report. In 2015, we began a multi-year plan to upgrade data storage technology and consolidate operations—all with an eye on long-term performance improvements, emissions reductions and cost savings. In 2016, projects to upgrade to all-flash storage, virtualize our systems, consolidate our data centers and further simplify our processes led to 7.7 million kilowatt hours (kwh) in power savings and 7.2 million kg in carbon dioxide emissions avoided. In 2016, we expanded our data collection efforts to include our Latin American presence in addition to North America; we plan to continue the global expansion of our environmental sustainability data in the years to come. In order to ensure more location-specific attention is paid to this area, we also added Climate Change as a risk in our Enterprise Risk Management (ERM) framework. For the first time, we responded to the Carbon Disclosure Project (CDP), joining close to 6,000 companies in over 90 countries, to disclose our enterprise-wide greenhouse gas emissions and related mitigation actions; we have also joined CDP as a corporate member.

Learn more: More information about our approach to Environmental Sustainability efforts, including as it relates to Energy, Travel & Waste, can be found in the “Our Environment” section of our Nielsen Global Responsibility Report.

We plan to release an updated Nielsen Code of Conduct during 2017. The updated Code of Conduct will provide employees with specific examples and guidance related to our overarching commitment to “Integrity in Action.” Also in 2017, we plan to update our global human rights guidelines to include more specific information about our approach to monitoring, managing and tracking potential human rights impacts and risks across our business and supply chain.

Early in 2017, we launched an internal “Integrity Ambassador” program to provide additional support for our overall Compliance & Integrity program. Integrity Ambassadors will serve as local-country resources to raise awareness about compliance and integrity resources and initiatives. We are currently piloting the program in approximately 20 countries and plan to expand this program to all of our markets in the coming years.

When the areas of Company Integration and Market Responsiveness & Proactivity were raised in our first non-financial materiality assessment in 2014-2015, the core issue was a need for further integration across our full portfolio of products, services, and teams to ensure we are addressing client and industry needs proactively and effectively.

From 2014-2016, Nielsen acquired 18 companies to add to our growing expertise in digital and mobile measurement. Through our newly consolidated Corporate Development and Strategy team, we plan to continue to align our strategic approach as it relates to mergers and acquisitions, Nielsen Ventures, strategic initiatives and overall corporate strategy. In 2016, we also launched our Nielsen Connected Partner Program to open up access for the first time to our global Consumer Packaged Goods (CPG) data for a select group of partners that provide added value for our clients. These Connected Partners make it easier for our clients to leverage our wealth of data without needing to source new partners separately. Another important factor is our ability to remain proactive in responding to the current and future needs of our clients through Nielsen’s foundational investments in development and innovation protection demonstrated by building out the breadth and depth of our intellectual property. Our active granted U.S. intellectual property portfolio has grown elevenfold (1013%) over the past eight years; Nielsen now holds more than 2,950 worldwide patents and patent applications, with over 913 granted in the U.S.

We have also done more to share how various teams and aspects of our business connect in integrated ways. Our ongoing Nielsen Around the World video series highlights the employees who help make our data and insights possible from around the world, and it gives clients and others an inside look into how we work on the ground. Our newly-launched Nielsen Next video series also provides clients and other stakeholders with a better understanding of how Nielsen’s data provides the science behind what’s next.

When this topic was raised by stakeholders in our 2014-2015 non-financial materiality assessment, it encompassed Nielsen’s responsibility to deliver timely and insightful research that fully reflects demographic diversity. We highlighted our efforts in this regard in our first Nielsen Diversity & Inclusion Report, published in 2016. Within that report, we shared our collaborative efforts with more than 200 different community organizations as a way to support recruitment of diverse panel and survey participants; this contributes to the effectiveness of our full product portfolio. In terms of other efforts to strengthen our overall product offerings, in 2016 we also expanded e-commerce measurement to the U.S., announced plans to enhance our local television measurement and Scarborough qualitative consumer insights in the U.S. across all 210 markets by enabling true electronic measurement, and added out-of-home measurement.

Nielsen’s strategic engagement with governments, regulators, and other external stakeholders advances our business and community interests. We continued to build relationships to position Nielsen as a trusted advisor in policy discussions and to advocate for Nielsen’s interests and discussed our policy efforts in the “Public and Policymakers” section of our Nielsen Global Responsibility Report. We are focused on creating the best environment possible for Nielsen’s business to thrive.

Transparency is essential to assure our clients and other stakeholders that our research methodologies, data and insights are trustworthy. To address this, Nielsen has increased communications about the methodology and processes we use to collect and analyze consumer data. Some examples of these communications efforts range from “How We Measure”, Perspectives on Retail Technology, our recently-launched Journal of Measurement, regular features on Nielsen News Center, our revised public-facing Digital Measurement Privacy Statement, and our ongoing Nielsen Around the World series. Our aim is to more comprehensively illustrate what it takes to capture and analyze the data that underpins our best-in-class global measurement.

In our first non-financial materiality assessment, stakeholders expressed their expectation that Nielsen both remain fully aware of how the data we collect is used across various contexts, and to seek projects that create positive social, environmental and business value. In terms of leveraging our data assets to further thought leadership efforts in key areas of value to society, some relevant reports from 2016 covered topics like the economic power and preferences of a diverse range of consumer groups through our Diverse Intelligence Reports; the growing influence of Hispanic consumers; health, wellness and obesity trends in Asia; trends in organic food consumption; the growing consumer demand for ingredients transparency; and the demand for greener cleaning products, among others.