How Germany’s Funke Mediengruppe is prioritising sustainability with ambitious goals and initiatives

"We need to prepare for decarbonisation," Ullah, told participants at our Indian Printers Summit. She discussed the measures publishers should focus on for sustainable business models and a sustainable future.

Ullah highlighted Funke's efforts to transform its business model and embrace sustainability as a core principle.

Funke Mediengruppe is one of Germany's largest media houses, employing more than 5,000 people across six regions in Europe, with its headquarters in Essen. Funke's product portfolio includes newspapers, magazines, websites, local radio stations, and various digital brands.

Funke is structured around three operational pillars: regional news, magazines, and digital. Regional media is the largest segment, accounting for 60% of Funke's revenues. However, subscriber numbers are declining.

Collaborating with influencers to engage younger audiences

"The average age of subscribers in our regional media section is 70 years," Ullah said, highlighting the significance of targeting diverse demographic groups within Funke's portfolio, particularly those under 35.

"To effectively engage this demographic, we must stay updated on trends and collaborate with influencers who resonate with their experiences," she added.

Additionally, the "Gen Plus" category - individuals over 60, still rely on traditional newspapers. She emphasised the need to connect with those in the "Family Phase" (35-50 years) and "Established Phase" (50-60 years) through various digital platforms.

"For the younger generation in the 'Starter Phase' (<25), our strategy focuses on harnessing social media to foster engagement," she added.

Sustainability: An investment that comes with costs

"We want to take journalism into the future," Ullah said, framing sustainability as a key part of the company's mission.

She emphasised the need for companies to prepare for decarbonisation across all areas of operation, stating, "How can we move forward if sustainable living is no longer possible?"

Sustainability costs money in the beginning but consider it an investment for the future - for publishers, agencies, and employees, she said.

Additionally, each climate accord is giving birth to new legislations. For instance, the European Green Deal introduced multiple laws that increase the demand for decarbonisation.

"Sustainability is also being used as a trade barrier," she said, citing the Carbon Border Adjustment mechanisms that impose higher taxes on products with high carbon footprints imported into the EU.

Addressing waste and circularity is essential, requiring new approaches to reduce waste amid emerging waste regulations. Fact-based journalism plays a vital role in tackling societal challenges, highlighting the responsibility of media houses in this effort, according to Ullah.

Funke targets net zero by 2050

Ullah laid out specific steps Funke is taking to achieve its sustainability goals.

• Achieve CO2 neutrality for the media companies by 2035.
• CO2-neutral value chain for Funke products.
• Strengthen social commitment and promote diversity and inclusion within the group.
• Compliance with high standards, legal regulations, and journalistic independence in daily work.

Funke aims to reach net zero by 2050, in line with the European Corporate Sustainability Reporting Directive.

"We need to establish a clear path for emission reduction," she said. The strategies include reducing waste, implementing green energy, and promoting electric mobility within the company's fleets.

Suppliers will be required to use green and renewable energy for their products, as this is essential for reducing emissions.

"We aim to promote climate-friendly mobility in the supply chain. We also want to optimise procurement scenarios based on emissions when awarding quantities for paper and print," she said.

Implementing green energy in paper production, printing, and transportation could lead to more than a 70% reduction in carbon footprint, she added.

'Sustainability should translate into actionable measures'

Funke is just beginning its sustainability journey. Sustainability should translate into actionable measures, despite the difficulties posed by limited resources and public perceptions, Ullah said.

Although declining subscriptions and eroding margins have posed challenge to financing climate initiatives, she said that Funke has established a "climate budget" to ensure that sustainability measures are implemented effectively.

Despite the challenges, there are opportunities for publishers in sustainability. To this end, Funke launched a product under the Funke for Future brand, aimed at generating revenue from sustainability initiatives.

Around 15,000 companies in Germany are subject to the ESG Reporting Directive, which requires them to disclose sustainability data. However, many of these companies lack the necessary skills to produce accurate reports.

To support companies in navigating these requirements, Funke recently launched the Funke for Future Academy, which offers training on CO2 balancing and reporting in line with regulations. "I am proud to say there is a lot of interest in this product," she said.

Aultrin Vijay

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