Simon Sikorski, President of Global Operations at XR Extreme Reach, urges the advertising industry to transition from sustainability policies to actionable outcomes, explicitly reducing storage, optimizing assets, and measuring efforts to lower carbon footprints as essential steps for a healthier planet.
Simon Sikorski, President of Global Operations at XR Extreme Reach, recently spoke at Cannes about the growing urgency for sustainability in advertising. As the first half of the year comes to a close, the industry must shift from policies to measurable outcomes, focusing on reducing storage, optimizing assets, and effectively measuring these efforts.
In a conversation with AdMonsters, he discussed the importance of moving from sustainability policies to actionable results and how advertising can influence consumers to make informed choices toward sustainable brands and practices. All companies must start lowering their carbon footprint to meet future targets and contribute to a healthier planet.
Susie Stulz: Seeing different parts of the digital advertising sector focus on sustainability is encouraging. What piqued your interest in it? 
Simon Sikorski: When I arrived at XR, there were already pockets of sustainability activity, and I made it my executive mission to connect those dots and transform those pockets of activity into a movement that propelled the company forward.
SS: I’m always interested in hearing how people manage to do that. Getting a company to commit to sustainability and embark on a path to net zero requires time, resources, investments, hiring consultants, and more. How did you achieve a corporate-level commitment?
SS: That’s an interesting question. Since we had many ongoing initiatives focused on efficiency, such as finding the most efficient ways to store ads, creating lighter-weight code, and simplifying ad delivery, it was a matter of connecting the dots. Plus, we already had an internal champion driving some of the work. Emma Horton, our Director of Sustainability, and I were able to elevate the conversation. We also brought on a number of partners to help us map out and measure our journey.
We weren’t starting from scratch, which was helpful. Additionally, demonstrating that sustainability equates to efficiency showed the company that it would improve performance.
SS: Do your clients appreciate your efforts to lower your carbon footprint?
SS: Yes, they do, and in general, I’ve seen a strong appetite for sustainability among big brands, media-holding companies, and all of our partners.
The interesting thing about this appetite is that it feels inclusive. No one is judging whether you’ve achieved net zero or are 100% carbon neutral. The prevailing sentiment is that sustainability is important, and everyone should be taking steps to reduce their impact on the environment. They want to know that you’re building up to what will soon need to be a robust and sustainable program.
SS: I agree. Very few companies have the whole thing figured out, but it’s important to do what you can while you’re creating a plan. Are you working with partners who can help you put together a roadmap?
SS: Yes we are. We’ve partnered with 51 to Carbon Zero to measure our Scope 1,2 and 3 emissions, which are our enterprise-level emissions.
We’re also working with GARM and Scope 3, organizations that are establishing formulas for measuring carbon impact on ad delivery. We’ve been collaborating with them to develop formulas for both linear and digital ad delivery. This is crucial since video ads represent a significant part of a brand’s media plans, making them a missing piece we need to address.
We are supporters and members of Ad Net Zero, and I’ve worked with that organization’s action plans. We’ve discussed Action 5, which deals with behavior change, with initiatives such as #ChangeTheBrief and Big Green Choices to encourage sustainable solutions in the creative briefs. It also looks at how we can use advertising to encourage more sustainability among consumers.
SS: In what ways can the industry change the brief so that advertising is more sustainable? Are there low hanging fruits?
SS: There are low-hanging fruit that all AdOps teams can address right away, starting with reducing activity duplication. Delivery is core to our operations at XR Extreme Reach, so we asked ourselves if there was an opportunity to consolidate global ad distribution. Without coordination, multiple parties send out the same material multiple times, leading to unnecessary duplication. Each party uses different codes, complicating tracking. Eliminating this duplication is both practical and sustainable.
Another quick way to make an impact is to look at asset utilization. Are the assets produced being used by marketing teams and repurposed optimally across channels? This is a great way for advertisers to uncover unnecessary waste.
Another important topic to explore is how we archive assets. AdGreen is launching a significant initiative to reduce the use of single-use hard drives. Are we just leaving hard drives on a shelf after a single use, or are we transferring data to LTO tape, the most sustainable long-term storage solution?
SS: Sorry, what’s LTO Tape?
SS: LTO stands for Linear Tape-Open, an older technology. It’s a high-capacity magnetic tape storage solution for long-term data archiving and backup. LTO offers many benefits, including durability, cost efficiency, and sustainability, making it ideal for archiving large amounts of data over extended periods. However, retrieving data from LTO tape is a bit involved, so it’s only suitable if you don’t need to access it regularly.
Any data that’s just sitting in the cloud can be archived to LTO tape, eliminating the generation of greenhouse gas emissions.
SS: Are there tools to help AdOps teams measure the carbon footprint of their ad delivery?
SS: Yes, GARM (Global Alliance for Responsible Media) and Ad Net Zero recently announced a global framework to measure media carbon emissions. The framework includes formulas for six media channels, a data request form, a disclosure form, and a monitoring template. So, it’s a good resource to check out.
SS: What are some effective strategies for reducing the carbon footprint in ad creation? For example, how can we minimize the environmental impact of shoots that traditionally require extensive travel to locations like Hawaii and Tahiti?
SS: We are beginning to see better use and re-use of footage. Instead of flying a film crew worldwide to multiple locations, send them to just one and use the footage for multiple markets.
Major production companies are also deploying AI to simulate locations and generate assets. Some have shifted to largely virtual production stages, reducing the need for location shoots and travel. This lets them produce a bulk of ads within limited time windows.
SS: I imagine we’ll see more of that in the future, especially among CPG companies that need to manufacture items and ship them to outlets. These companies will seek advertising partners to help them lower their Scope 3 emissions and achieve net zero.
SS: I think you’re right. There will likely be a moment of truth as early as this year when all major advertisers will ask their ad-tech partners about their sustainability initiatives. Many big brands have a net-zero target date of 2030, so they’re getting serious about addressing Scope 3 emissions now.
SS: How can advertising influence consumers to adopt more sustainable behaviors without sounding preachy?
SS: By incorporating subtle messages within the creative itself. For instance, an ad in the classroom can feature a visible recycling bin. You can show a composting bin on the counter in a kitchen scene. If an ad depicts someone enjoying a beverage, show them recycling the container afterward. These visual cues teach consumers that recycling and composting are normal behaviors.
SS: What are the biggest challenges the industry still faces regarding lowering their carbon footprint?
SS: One of the biggest challenges is the sheer number of advertising channels—social media, digital out-of-home, mobile, web, and CTV. Each requires a specific creative format. The key is balancing the demand for content across all these channels without constantly creating something new and original each time, as that continuous creation process has a heavy carbon footprint. We’ll see a lot of smart content recycling in the years ahead.
Again, we should examine asset utilization, and what is known about past utilization should inform what not to create because those assets typically don’t get used.
SS: Forgive the pun, but that sounds like a creative challenge.
SS: It is a creative challenge that I’ve seen creative teams handle well. They’re creating assets, such as textured backgrounds, that they can use as a starting point for ads destined for multiple channels and markets, for that matter.
SS: Any parting words for our readers?
SS: Now is the time to get started. In May of this year, Forbes released a survey that found 63% of CEOs have sustainability goals — an increase of 12% from the year before. Scope 3 emissions — the greenhouse gases generated by vendors — will be a target so that you will be asked about your sustainability. Everyone will need an answer, so I said earlier that 2024 will be a moment of truth.