S4 Capital — full event log

Effective 1 January 2025, the Group's reportable segments comprise two Practices: Marketing Services and Technology Services. Marketing Services comprises the previously reported Content and Data&Digital Media segments. Prior period information has been re-presented.

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Number of Monks at year end was circa 6,350, down 11.5% from circa 7,150, reflecting disciplined cost management amid revenue decline.

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The Company maintained its B-Corp status, reinforcing its commitment to environmental, social and governance performance, stakeholder-driven governance, social impact and DE&I.

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Subsequent to year end, Group repurchased €25.7 million of its €375 million Term Loan B at a discount. Remaining €349.3 million matures August 2028.

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One of three stated ESG priorities. The Company focuses on reducing the environmental footprint of its workspaces as part of its 'responsibility to the world' pillar. Workspace footprint is shrinking as right-of-use assets fell from £34.7m to £27.3m.

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Second of three stated ESG priorities. Encompasses sustainable ways of working across the Group's global operations in 33 countries, supporting the firm's responsibility to the world pillar alongside transparent reporting and B Corp accountability.

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Across the Group, S4Capital supports communities through donated hours and delivers 'For Good' projects with clients that generate positive social, cultural or environmental impact, leveraging client engagements as a decarb/impact lever rather than a direct operational one.

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Introduced three new GTMs: Orchestration Partner, Real-Time Brands and Glass Box Media, all supported by Monks.Flow AI workflow solution.

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The Group has committed to neutralising any residual emissions by 2040 with removals to reach net zero emissions, in compliance with the SBTi's net zero standard. The Group's S4 Forest carbon offsetting and reforestation initiative has planted a total of 506,322 trees over the last four years. No specific removal technology (DAC, BECCS etc.) is named; the approach is primarily nature-based reforestation as a bridging mechanism.

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In July 2024 the Group's Science-Based Targets were validated by the SBTi: reduce absolute Scope 1&2 by 42% by 2030 from 2022 baseline; reduce absolute Scope 3 by 25% by 2030; reduce all scopes by 90% by 2040. These align with the 1.5°C Paris Agreement pathway.

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Monks achieved global B Corp Certification in 2024, recognising achievements in governance and accountability, environmental performance, social impact and DE&I.

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Comparatives for 31 December 2023 and 31 December 2022 restated to account for recognition of deferred tax balances related to certain business combinations in prior years. Impact on 2023 retained earnings: +£26.8m; on 2022 retained earnings: +£35.1m.

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Group rebranded to Monks and restructured from three practices (Content, Data&Digital Media, Technology Services) to two practices (Marketing Services and Technology Services), with reporting structures planned for 2025. Multiple Executive Directors stepped down from Board at 2024 AGM.

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Group recognised a non-cash impairment charge net of tax of £280.4 million (£196.5m in Content, £83.9m in Technology Services) reflecting trading conditions in H2 2024 and medium-term outlook. Goodwill impairment £280.4m gross; intangible impairment £20.8m.

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Company re-examined all 15 Scope 3 categories and confirmed same six material categories as prior year: purchased goods & services, capital goods, fuel- and energy-related activities, waste in operations, business travel, and employee commuting. Number of categories unchanged year-over-year.

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The Group's primary Scope 1 and 2 reduction strategy centres on consolidating offices into energy-efficient locations, closing high-gas-consumption offices, and transitioning refrigerant systems. In 2024 Scope 1 emissions fell 53.2% largely due to office closures and a 55.3% reduction in natural gas use. The Group also reduced electricity consumption by 12.6% globally, and is developing action plans for remaining district-heating-dependent facilities. Switching to renewable energy contracts whenever possible is the stated ongoing approach.

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Business travel (land and air) is the second largest Scope 3 category at 4,733 tCO2e in 2024. The Group enforces a Group business travel and expenses policy that considers transport carbon intensity. Remote working and virtual workflows have been used to reduce on-site attendance — for example the AWS virtual broadcast truck reduced the number of on-site Monks by 75% and resulted in a 75% reduced carbon footprint. A decrease in headcount also contributed to lower travel emissions.

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The Group is transitioning its leased company car fleet to electric vehicles, growing EV share to 80% of the fleet in 2024, contributing to a 60% reduction in mobile combustion emissions. EV charging stations have been installed at Netherlands and Germany facilities. The stated goal is a 100% electric vehicle fleet by 2030.

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Purchased goods and services is the dominant Scope 3 category at 10,918 tCO2e (54% of total). The Group reduced these emissions by 21.9% in 2024, broadly correlated with underlying cost reductions from headcount and discretionary cost discipline. Hosting usage reduction of 34.8% also contributed, reflecting commitment to greener digital products. Increased supplier engagement and data quality improvement are planned to meet the 25% Scope 3 reduction target by 2030.

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Employee commuting emissions were 717 tCO2e in 2024 (down 7.0%). The Group plans to encourage employees to adopt lower-carbon commuting methods including public transport, walking, cycling and transitioning personal vehicles to hybrid or electric options. This is a stated priority within the transition plan, with enhanced employee commuting data collection planned.

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In 2024, Monks achieved B Corp status, garnering 91 points, well above the threshold, with every office around the world certified simultaneously.

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Re-naming of unitary operating brand to Monks, accompanied by a new focus on just two offerings: Marketing Services and Technology Services, embracing nine distinct capabilities.

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Remote broadcast workflow running on AWS allowed Monks to reduce its number of on-site employees by 75%, resulting in avoided carbon emissions related to air and ground travel. Distributed workflow means directors, producers, video and audio engineers, replay/graphics operators, editors and announcers can support events remotely from home.

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Through expansion of Monks.Flow into a broader technology application, smaller language models are combined with knowledge graphs, significantly reducing computational and energy costs. The approach focuses on lean, impactful investments in AI technology rather than energy-intensive large models.

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Monks acknowledges it is not the prime mover in AI emissions since they work with tools provided by third parties (AWS, Google, Nvidia). The firm notes big tech companies have their own net zero targets and face challenges cutting emissions amid surging AI demand. Monks emphasises understanding the impact of its suppliers.

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S4Capital aims to increase renewable electricity from the current 42.1% (2024) toward 100% by 2040. The Group is actively exploring switches to renewable energy contracts for offices and is purchasing Renewable Energy Guarantees of Origin (REGOs) and Renewable Energy Certificates (RECs) as interim solutions. Collaboration with landlords to switch to renewable energy is a key initiative, alongside consideration of Power Purchase Agreements (PPAs). The Group also targets a 100% electric vehicle fleet by 2030 and has begun deploying EV charging stations in the Netherlands and Germany.

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S4Capital acquired Formula Consultants Incorporated for expected total consideration of £1.2m including performance-linked consideration of £0.4m. Net identifiable assets £1.0m, goodwill £0.2m. FCI contributed £0.4m revenue and £0.3m operational EBITDA since acquisition. Added to Technology Services segment.

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S4Capital achieved 45% renewable electricity in 2023 (down from 57% in 2022 due to shift from extrapolated to actual data). The company plans to increase renewable energy usage significantly, targeting 100% renewable energy consumption by 2040 in line with SBTi targets. Near-term actions include purchasing REGOs/RECs as an interim solution, engaging landlords to switch to renewable electricity, and considering PPAs for renewable electricity. Two out of four UK offices are already gas-free and use 100% renewable electricity. Software-defined production workflows are powered by 95%+ renewable energy. The AWS cloud-hybrid broadcast workflow actively avoids GHG emissions associated with traditional live broadcast setups.

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Purchased goods and services is the dominant Scope 3 category at 13,977 tCO2e (54.5% of total GHG in 2023), reduced 12% vs 2022 through operational cost optimisation. The company is implementing sustainable procurement practices across the supply chain, with actual emissions data received from key suppliers including hosting/server emissions for the first time. A Sustainable Procurement Policy has been Board-approved and good progress on sustainable procurement measures and policies is a 2024 goal. The Group categorises direct costs more accurately into motion picture/sound recording, photographers, and independent artists categories.

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Increased access to actual energy consumption and emissions data from offices reduced the extrapolation factor significantly. This particularly impacted employee commuting (-76.6%) and waste categories where actual data replaced estimates. Hotel emissions included in Scope 3 for first time. Actual supplier emissions incorporated for hosting/servers and business travel.

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Following board effectiveness review, Board decided to develop more traditional streamlined structure. Christopher S. Martin, Victor Knaap, Wes ter Haar and Scott Spirit agreed to retire from Board at conclusion of 2024 AGM, retaining executive roles. Jean-Benoit Berty appointed Chief Operating Officer. Wesley ter Haar to become Board Observer.

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A significant 78% decrease in natural gas emissions was achieved in 2023 (from 9,048 MWh to 2,038 MWh globally), reflecting reduced reliance on fossil fuels. The company is engaging landlords to switch to renewable electricity and reduce reliance on gas for heating, and targeting transition to less polluting refrigerant systems. Office footprint was also reduced 39% (from 69,875m² to 42,420m²) through real estate optimisation. Two UK offices are now gas-free with 100% renewable electricity. Refrigerant leakage management is an ongoing focus after first-time inclusion of combined entity data increased visibility.

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Employee commuting emissions were 771 tCO2e in 2023, significantly lower than 2022 due to both improved data quality and sustained hybrid working. On average, 64% of employees worldwide either work from home, walk or cycle to work, resulting in negligible emissions. The company maintains locations in central areas to facilitate non-car commuting and has a return-to-office policy of at least three days per week. Initiatives to incentivise less carbon-intensive commuting include public transport, walking, cycling, and switching to hybrid or electric vehicles.

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S4Capital formally submitted Science-Based Targets for verification: 42% reduction in absolute Scope 1&2 by 2030 (2022 base), 25% reduction in Scope 3 by 2030, 90% reduction in Scope 1,2&3 by 2040. Near-term targets aligned with 1.5°C, full value chain target consistent with well-below 2°C pathway.

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Having been carbon neutral in 2021 and 2022 through carbon offsetting, S4Capital shifted strategy to becoming Net Zero by 2040. The S4 Forest (tree planting) initiative continues but company explicitly states it does not aim to become carbon neutral through offsetting.

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S4Capital improved its CDP (Carbon Disclosure Project) score from B- to B following enhanced GHG reporting across Scopes 1, 2 and 3. This reflects improved data quality and ESG reporting maturity.

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S4Capital developed software-defined production workflows using AWS cloud-hybrid infrastructure that avoids GHG emissions commonly associated with live broadcast workflows. This approach slashes costs from traditional broadcast set-ups by an estimated 50% or more and is powered by 95%+ renewable energy, eliminating travel-related emissions from live productions. The company received a Sustainability in Leadership award at the NAB Show for this innovation. The Group also aims to reduce emissions from digital products and shoots wherever possible, and seeks to integrate sustainability solutions more systematically into client work with a target of 10% of revenue from Purpose-driven client projects by 2040.

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Business travel was the second-largest Scope 3 category in 2023 at 5,169 tCO2e (20.1% of total), up 88% vs 2022 as travel recovered post-COVID. The Group enforces a business travel and expenses policy that considers the carbon intensity of transport modes. Policies to reduce air travel for short distances have been implemented. The company recognises sustainable aviation fuel (SAF) as a solution for unavoidable air travel and actively supports its use. Hotel emissions included in Scope 3 for the first time in 2023.

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2022 GHG emissions data restated to include acquisitions omitting over 5% of revenue, remove duplicate refrigerant leakage data, improve Scope 3 category splits (purchased goods subdivided more accurately), correct business travel spike, and adjust fuel-energy activities. 2022 is now the SBTi baseline year. 2021 data excluded due to different methodology.

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During 2021, S4Capital finalised purchase price allocations for four 2020 acquisitions as required by IFRS 3, recognising additional intangibles of £63.5m and reducing goodwill by £61.8m. The 2020 comparative balance sheet was restated.

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In 2021 S4Capital developed a Sustainable Work Manifesto to integrate sustainable solutions into client project delivery. It covers materials, business flights, and end products — including mobile-first production and wi-fi-only content delivery to reduce end-consumer energy use. The Green Production Manifesto for sustainable film production covers props, waste, food, and studio design. The company aims to offer clients the ability to offset their digital production emissions via S4 Forest. SDG 9.4 target is to reduce CO2 per unit of value added.

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S4Capital's Zero Impact Workspaces pillar includes 'aligning our procurement with sustainability standards and engaging with suppliers on sustainability.' The top 20 suppliers publicly disclose a CSR/ESG policy. This supply-chain engagement is an early-stage initiative without quantified scope 3 purchased goods emissions, but signals intent to address the largest unquantified scope 3 category for a marketing services firm.

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S4Capital explicitly targets 'moderating travel expectations from pre-covid-19 levels, using environmentally-friendly travel options, and continuing to offset carbon emissions' as part of its Zero Impact Workspaces pillar. Business flights are tracked as a per-FTE emissions category and shown in the 2021 vs 2020 bar chart. The shift to hybrid working (approximately 40% home working) structurally reduces employee commuting and business travel compared to pre-pandemic levels.

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In August 2021, MediaMonks and MightyHive merged their brands into a single unitary brand called Media.Monks, reflecting the fully integrated offer across Content, Data&Digital Media and Technology Services practices.

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S4Capital stated intention to set a science-based target in 2022 aligned with the Science-Based Targets Initiative (SBTi) and the Paris Agreement goal of limiting warming to 1.5 degrees Celsius.

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On 6 August 2021, S4Capital signed a new facility agreement consisting of a Term Loan B of EUR 375 million (£319.8m) and a multicurrency RCF of £100 million (undrawn). This replaced previous facilities totalling approximately £110m. Net debt at year end was £18.0m.

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S4Capital accelerated consolidation of separate offices city-by-city during 2021, with existing leases terminated more quickly due to covid-19. New leases are planned at approximately 60% of prior capacity floor plate, assuming three days per week office occupancy. A Green Building checklist is being implemented for new and existing contracts. Office energy (electricity, natural gas, district heating) is the primary source of Scope 1 and 2 emissions for the business.

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In FY21, S4Capital became the first advertising and marketing firm to commit to the Amazon Climate Pledge, with the aim of net zero emissions by 2040. This predates the SBTi validation which came in 2024.

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S4Capital completed 10 acquisitions in 2021 for total consideration of £219.7 million including Jam3 (£38.3m), Raccoon (£33.8m), Cashmere (£45.4m), Zemoga (£63.9m) and others in Content, Data&Digital Media and Technology Services practices.

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S4Capital signed the Climate Pledge in 2021, a cross-sector commitment to reach net zero carbon emissions by 2040 (earlier than Paris Agreement). The company also has a 2024 carbon neutrality commitment and is seeking B Corp certification by 2023.

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S4Capital launched a third operating segment, Technology Services, in 2021 through the combination with Zemoga. This broadened the Group's addressable market to CIOs and CTOs in addition to CMOs and Chief Sales Officers.

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S4Capital reports that 30% of its electricity use is renewable as at the 2021 reporting scope. The Zero Impact Workspaces pillar explicitly targets broadening the renewable energy share by 'covering roofs with solar panels or procuring green energy'. The company tracks renewable electricity percentage as a KPI and aims to increase this over time, though no specific RE100 commitment or PPA arrangements are disclosed in this report.

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The Zero Impact Workspaces strategy includes 'increasing the share of electric cars in our own and leased cars' as a stated action. Company cars are tracked as a per-FTE emissions category in the GHG inventory. No specific EV fleet percentage target is disclosed in this report.

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In 2021 S4Capital launched S4 Forest in partnership with Tree-Nation, planting over 265,000 trees in Madagascar (Eden Projects), reforesting 88.48 hectares and capturing 10,617.95 tCO2 — three times the Group's 2020 emissions of 2,800.80 tCO2. The 2021 emissions will be offset through a certified forest preservation programme. The company also aims to offer clients the opportunity to offset emissions from their digital production through S4 Forest. This nature-based offset/insetting approach underpins the 2024 carbon neutrality commitment.

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In 2021 S4Capital measured its carbon footprint for the second time in alignment with the Greenhouse Gas Protocol. The 2020 measurement was the first. Total footprint 3,125.32 tCO2e vs 2,800.80 tCO2e in 2020.

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