Arum Nixon, the Australian Chapter lead of Ad Net Zero, joins Darren to discuss the critical findings from their latest white paper, Triple Win for Marketers. As climate change evolves from a corporate social responsibility issue into a board-level commercial risk, mandatory reporting frameworks are bringing unprecedented scrutiny to organisations’ Scope 3 value chain emissions.
Arum highlights the often-overlooked environmental impact of advertising, revealing that marketing activities can account for more than 5% of an organisation’s upstream Scope 3 emissions – and significantly more in service-led sectors. The conversation delves into the common trap of relying on “spend-based” carbon estimates, which incorrectly treat cost as a proxy for carbon and leave marketers with no pathway to reduce their footprint other than cutting their budgets.
Instead, Arum advocates for the adoption of granular, “activity-based” data. He explains how this approach delivers a triple benefit for marketers: it provides a clear pathway to reduce actual carbon emissions, it lowers the reported footprint through greater accuracy, and it refines campaign performance by cutting supply chain waste. In fact, research shows that lower-carbon media campaigns often drive better commercial results, including lower acquisition costs and higher click-through rates.
The episode also covers practical steps for implementation, including how the Global Media Sustainability Framework (GMSF) offers a standardised method to calculate media emissions, and features real-world examples of brands successfully optimising their media buys for both the planet and their performance.
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So at least the plus side is that there is a strong incentive for all of those companies.
Transcription (Edited):
Darren Woolley:
Hi, I’m Darren Woolley, founder and CEO of TrinityP3 Marketing Management Consultancy, and welcome to Managing Marketing, a weekly podcast where we discuss the issues and opportunities facing marketing, media, and advertising with industry thought leaders and practitioners.
Businesses are no longer dealing with climate change as a distant corporate social responsibility issue. It is a board-level commercial risk affecting supply chains, brand trust, and the bottom line. Driven by new mandatory reporting regulations, organisations must now measure and disclose emissions across their entire value chain, known as Scope 3 emissions.
For marketers, this brings a new level of scrutiny. Advertising and marketing activities can account for over 5% of an organisation’s upstream Scope 3 emissions. Historically, the industry has relied on spend-based models to measure the impact, which creates a trap where the only reliable way to reduce your carbon footprint is to slash the marketing budget.
However, a shift to granular, activity-based data offers a new path forward, one that reduces emissions without compromising campaign performance or investment. To help us navigate the invisible carbon footprint of advertising and unpack the recent white paper, Triple Win for Marketers, please welcome to the Managing Marketing podcast the lead of the Australian chapter of Ad Net Zero, Arum Nixon. Welcome, Arum.
There has been a big change over the last twelve months or so, with organisations now facing a financial responsibility to report on their carbon footprint and greenhouse gas emissions. What impact have you seen from that?
Arum Nixon:
Thanks for having me, Darren. It has had a huge impact. First of all, it’s important to note that while this is legislative, it has largely come from investors asking for this information. It’s a major topic in the boardroom and from an investor relations and risk management point of view.
Those stakeholders are looking at three-to-five-year horizons for organisations. They see material climate change impacts coming down the line, as well as distinct commercial opportunities. They want organisations to lean in, take action, and maintain visibility in that space. That legislative environment has been a primary driver across the board.
Global Standards and Australia’s Role
Darren Woolley:
This is something happening globally, isn’t it? Even though the Australian government has been early to embrace it in legislation, it draws from broader global standards.
Arum Nixon:
Absolutely, it’s a global standard that different countries can adopt. Brazil is another notable market moving on this alongside Australia. Different markets have different approaches. In the EU, they are attempting to simplify reporting standards, while the US has its own distinct dynamics.
Australia is in an interesting position as a model market adopting stable frameworks early. When I’m on global calls with stakeholders, Australia is often cited as an example for establishing a clear train of travel.
The Cascading Effect of Scope 3 Reporting
Darren Woolley:
People often assume this only impacts mega-corporations, but there are implications across the entire business landscape, aren’t there?
Arum Nixon:
That’s true. It starts with the largest companies through a phased rollout. Currently, the largest firms report Scope 1 and 2 emissions, which are things they directly control. Crucially for marketing, starting next year, those same organisations must report and reduce Scope 3 emissions, which cover their supply chain, including advertising services.
Over subsequent years, this requirement rolls out to medium and smaller organisations. Gathering auditable, rigorous data takes years, which is why a large proportion of the industry is already putting the groundwork in place today.
Darren Woolley:
Incorporating this into financial reporting rather than a separate CSR report adds real teeth to the process.
Arum Nixon:
Exactly. You need rigor and reliable data, but you also want to encourage organisations to take that initial first step. At Ad Net Zero, we emphasise not letting perfection get in the way of progress. However, when data is scrutinised at a financial level, the numbers must be accurate and auditable.
The Invisible Carbon Footprint of Digital
Darren Woolley:
The white paper notes that advertising can contribute over 5% of upstream Scope 3 emissions, and up to 16% in certain service sectors. That’s a significant figure that catches many by surprise.
Arum Nixon:
Most people picture physical items like printed posters or delivery vans when thinking about advertising emissions. In reality, the digital footprint is by far the biggest contributor. Power-hungry servers running digital supply chains generate a substantial energy footprint.
In service-based sectors like finance, where manufacturing or heavy physical supply chains don’t exist, advertising represents a much larger percentage of overall upstream Scope 3 emissions.
Darren Woolley:
Print and production worked hard on physical sustainability decades ago, but in digital, the impact ties directly back to energy consumption and reliance on fossil fuels.
Arum Nixon:
Precisely. Digital supply chains span global server networks across different state and national energy grids. Because energy costs money, reducing emissions means reducing energy demand, making supply chains leaner and more efficient. By streamlining the supply chain and eliminating digital waste, you cut emissions, save on energy bills, and improve campaign delivery.
The Opportunity for Marketers
Darren Woolley:
Marketers never feel like they have enough budget, and an unmanaged carbon footprint could eventually carry direct financial costs. How can marketers turn this to their advantage?
Arum Nixon:
It presents a huge opportunity at the board level. Marketing is an agile, data-driven discipline built on optimisation and efficiency. Marketers are uniquely positioned to bring solutions to the table that reduce emissions without increasing costs or harming campaign performance. Getting visibility over supply chain data reveals operational inefficiencies, which ultimately boosts campaign performance as a bonus.
Activity-Based vs. Spend-Based Data
Darren Woolley:
Currently, the default calculation method relies on spend-based benchmarks, assessing carbon based on dollars spent. How does that work against marketers?
Arum Nixon:
If your carbon footprint is tied purely to spend, your budget essentially becomes a climate risk, because the only way to reduce carbon is to cut spend. Shifting to activity-based data, such as breaking down the actual components of your media plan or production schedule, allows you to find savings without sacrificing budget or reach.
Furthermore, spend-based averages carry inflated estimates. Simply switching to granular activity-based reporting immediately lowers your reported emissions footprint before you even alter your campaign.
Darren Woolley:
That classification also varies depending on your operational structure. For instance, an in-house agency’s planning tools fall under Scope 1 and 2, whereas bought media remains Scope 3.
Arum Nixon:
Exactly. While internal operational tools belong to Scope 1 and 2, the external media inventory bought remains in Scope 3.
The “Triple Win” and Avoiding Greenwashing
Darren Woolley:
That brings us to the core concept of the white paper:
the “Triple Win”. How do you define that?
Arum Nixon:
The Triple Win represents the convergence of three benefits:
a business benefit, a marketing performance benefit, and an environmental benefit. Whichever angle drives an organisation, all three work together to deliver positive commercial outcomes.
Darren Woolley:
Because this relies on auditable, financial-grade data, it also helps brands navigate concerns around greenwashing.
Arum Nixon:
Absolutely. This isn’t about making sweeping public claims; it’s about backend supply chain management. Many marketers have become nervous about talking publicly due to fear of greenwashing or regulatory backlash. Activity-based decarbonisation happens quietly behind the scenes by optimising your operations, meaning you don’t have to put yourself on a pedestal to make meaningful progress.
Eliminating Waste and Measuring Media
Darren Woolley:
It comes back to eliminating waste. Much like direct mail database cleaning in years past, better media targeting cuts waste and drives effectiveness.
Arum Nixon:
Exactly. We often get distracted by vanity metrics that don’t drive real business outcomes. Balancing true business success alongside carbon and dollar costs results in far sharper decision-making.
Darren Woolley:
How do we accurately measure media emissions? How do we set boundaries on what is and isn’t included?
Arum Nixon:
Consistency across the ecosystem is vital. Ad Net Zero developed the Global Media Sustainability Framework (GMSF), which is a voluntary, open-access standard that sets agreed boundaries, formulas, and data units across channels. When agencies, calculators, and vendors align to the GMSF, marketers can compare options like-for-like with complete confidence.
Real-World Case Studies: SBS and Australian Ethical
Darren Woolley:
Are there tangible examples of Australian brands putting this into practice?
Arum Nixon:
Yes, the white paper highlights case studies like SBS and Australian Ethical. Australian Ethical discovered Out-of-Home (OOH) was both their strongest brand driver and their largest carbon source. By collaborating with their media vendor, they optimised campaign delivery, including adjusting creative file lighting.
Darker creative uses significantly less energy on digital OOH screens than bright white creative. Darkening the background reduced panel energy consumption dramatically without losing visual impact or campaign performance.
Creative Decisions, File Sizes, and Optimisation
Darren Woolley:
That highlights how creative and production choices directly affect media delivery emissions.
Arum Nixon:
File size optimisation is another prime example. Reducing digital file sizes to appropriate specs lowers energy consumption during transmission and speeds up load times, delivering a smoother user experience alongside carbon savings.
Darren Woolley:
Agencies often email multi-gigabyte video files when an optimised MP4 would suffice for viewing! Matching file quality to the actual display environment makes a noticeable difference.
Arum Nixon:
Small operational habits matter but scaling optimisations across millions of media impressions is where the massive environmental impact occurs.
The Role of Artificial Intelligence
Darren Woolley:
We can’t host a marketing podcast without touching on AI. Data centres driving AI consume massive amounts of energy. How is Ad Net Zero approaching this?
Arum Nixon:
AI presents a dual narrative. On one hand, generative tools and heavy data processing increase energy demand. On the other hand, AI excels at multi-variable optimisation, balancing reach, performance, cost, and carbon across complex datasets. Using AI responsibly can streamline supply chains, provided we maintain checks and balances on its energy footprint.
Conclusion and How to Access the White Paper
Darren Woolley:
Establishing an auditable baseline and leveraging standardised frameworks allows the industry to move past speculative offsets and focus on genuine reductions. Arum, thank you for joining us on Managing Marketing. Where can listeners download the white paper?
Arum Nixon:
Thank you, Darren. You can download Triple Win for Marketers on the Ad Net Zero website or connect with me directly on LinkedIn.
Darren Woolley:
Fantastic. Well, thank you very much. Just one quick question before you go: do you have a preferred media channel, and what are the offsets like for that?
