being greenMissionRecovery & ReuseForest SustainabilityCarbon FootprintOur Commitment Building Green

Key Facts on Being Greenbeing green

Second certification program with Time Inc., National Geographic and several paper suppliers produces another quantum change in certified Maine forestland.

Hearst requires that the paper mills we purchase from operate under a third-party certified “Chain of Custody” (COC) program to ensure that 100% of the fiber entering the mill is traced to its origin and complies with controlled logging standards. Since the end of 2009, 100% of the magazine paper Hearst purchases comes from mills with COC certificates.

IN 2013, OVER 80% OF OUR MAGAZINE PAPER WAS COMPRISED OF CERTIFIED FIBER.

Hearst attempts to optimize its use of post-consumer recycled paper across its portfolio of publications. With demand for recovered paper continuing to outstrip supply most of the time, Hearst continues to be mindful of putting recovered fiber to efficient and environmentally reusable end uses. Clearly, the industry can and will recover more paper for reuse. But critics who call for magazine companies to use higher levels of recycled content in magazines should consider that:

• Demand outstrips supply, limiting the availability of recycled fiber. Virtually all recovered fiber is being used.

• Asia has significantly increased its paper manufacturing capacity, leading to increased demand for recovered fiber from North America.

• It is important to use recycled fiber, but we must do so efficiently to avoid creating a negative carbon footprint.

Thus, the insufficient supply of recovered fiber makes recycling and supporting sustainable forestry key goals for the magazine industry and for Hearst.

Key Facts on Being Greenbeing green

reduction in paper consumption by Hearst Magazines over the past 3 years

7,000 tons

Hearst Newspapers has reduced fiber usage by 8% by reducing newspaper weight.

1st major magazine company to launch a consumer website dedicated to green living, thedailygreen.com

17.5 million fewer magazines printed at Hearst in the past 3 years

Mission

Environmentally... Responsible

Sustainable Enterprising

As one of the world’s largest publishers, Hearst Corporation believes responsible environmental stewardship is not only

an integral part of doing business; it is at the core of who we are as a company.

We continually review the ways we source and use the raw materials that go into the great magazines

and newspapers we publish. Here are the cornerstones of our corporate environmental mission.

being green

Recovery & Reusebeing green

Engaging Our ReadersHearst’s goal is to boost the number of magazines that are recycled. Fully 95% of magazines that do not reach the reader—print overruns, damaged or unsold newsstand copies—are recycled. But what happens when consumers are finished reading their magazines?

Many copies are filed for reference purposes, but the rest are thrown away. Of those, approximately 20% are recovered and recycled. The remainder end up in landfills.

One reason more people don’t recycle magazines is that they don’t know they can. In the past, recycling was not possible because technology had not been developed to handle coated paper and various adhesives used to bind magazines. Today this is no longer the case.

Nearly all municipalities with recycling programs have the capacity to accept magazines as part of their recovery programs. Together with Earth 911, a network of community-specific environmental resources, Hearst is helping consumers identify convenient recycling locations and policies.

Hearst has been prominent in helping the Association of Magazine Media drive its “Please Recycle” campaign, educating readers on how they can help recovery efforts by recycling their magazines.

In July 2007, all Hearst magazines began carrying the industry’s recycling logo containing the message “Please Recycle This Magazine—Remove Inserts or Samples Before Recycling.”

In partnership with the National Recycling Coalition and various leading companies and advocacy

organizations, Hearst joined Mayor Michael R. Bloomberg in the New York City launch of ReMix—Recycling Magazines is Excellent!—a national public education campaign aimed at

increasing residential recycling of magazines and catalogs.

Successes & Challenges Clearly, the industry can and will recover more paper for reuse. But critics who call for magazine companies to use higher levels of recycled content in magazines should consider that:

• Demand outstrips supply, limiting the availability of recycled fiber. Virtually all recovered fiber is being used.

• Asia has significantly increased its paper manufacturing capacity, leading to increased demand for recovered fiber from North America.

• It is important to use recycled fiber, but we must do so efficiently to avoid creating a negative carbon footprint.

Thus, the insufficient supply of recovered fiber makes recycling and supporting sustainable forestry key goals for the magazine industry and for Hearst.

Printing Smarter Hearst Corporation has:

• Increased paper efficiency by 7,000 tons over the past three years

• Reduced returns by 17.5 million copies over the past three years

• Reduced fiber use in our newspapers by approximately 8% as a result of a lower basis rate

HOW TO RECYCLE MAGAZINES It’s easy: Tear out any non-paper inserts such as product samples, cards with adhesives, and CDs that have been bound into the magazine. Then follow your community’s recycling procedures. This works with catalogs, phone books and direct-mail material, as well.

Supporting Sustainable ForestryWhile Hearst Corporation presses ahead to increase recovery and use more recycled material, it is also optimizing its paper purchasing strategy to ensure the paper fiber used come from forests that are sustainable and responsibly managed.

Over many years, various expert groups have established standards, mechanisms and third-party auditing procedures for certifying that forests are being harvested sustainably.

Hearst Sustainable Forestry InitiativeTo achieve leading-edge performance in environmentally preferable paper, in 2004 Hearst asked all of its paper suppliers to participate in the Hearst Sustainable Forestry Initiative. HSFI is designed to track, promote and improve the overall fiber certification levels for 100% of the paper purchased for Hearst magazines. All fiber is reported under the aforementioned forestry certification schemes.

In December 2004, our weighted average of certified fiber purchased for our magazines stood at 38%. By modifying our purchasing strategy and working proactively with our suppliers, we were able to increase this level to over 80% in 2013.

We work with our suppliers on three fronts:

• Continuously improving certification levels in our purchased paper

• Changing mills or suppliers when certification percentages and targets are unacceptable

• Assisting mills and suppliers in working with government officials, landowners and various organizations to promote and encourage higher amounts of certified fiber

In 2009, Hearst and Time Inc. launched a pilot program to increase the number

of certified forests. Together, the publishers are partnering with small- and medium-sized landowners in Maine to help them achieve third-party forest certification to increase the amount of certified fiber available.

Working in conjunction with Verso Paper, Sustainable Forestry Initiative, American Tree Farm System, NewPage Corporation and Sappi Fine Papers, the program helps landowners coordinate their third-party certification audits to either the SFI program or the ATFS program—creating cost efficiencies and encouraging more participation. The pilot program is designed to demonstrate a cost-effective approach to forest certification and will add approximately one million acres to Maine’s certified forests. In September 2010, Hearst was one of five companies recognized with the Sustainable Forestry Initiative President’s Award in recognition of their commitment to supporting the development of sustainable forests. In 2013, Hearst again partnered with SFI and other publishers on a new initiative to create quantum improvements in certified lands in several U.S. southern states.

In 2010, 20 member companies of the Forest Products Company of Canada partnered with prominent environmental organizations to sign the world’s largest conservation agreement in the boreal forest of Canada—an area twice the size of Germany. Hearst, along with other end users including Time Inc., Lowes, Staples and Office Depot, was chosen to sit on an advisory council for this groundbreaking agreement.

Verifying Our SourcesWe recognize several certification systems. Each system must have an accredited third-party audit to ensure that forestry management practices meet the standards established by the respective

forestry certification scheme. These standards include sustainable harvesting techniques, as well as protection of wildlife habitat, soil and water.

We also require that paper mills we purchase from operate under a third-party certified “Chain of Custody” (COC) program. This ensures that 100% of the fiber entering the mill is traced to its origin and complies with controlled logging standards, i.e., the fiber is legally harvested and does not come from endangered forests. At the end of 2009, 100% of the paper Hearst purchased came from mills with COC certificates and operate under a chain of custody system.

Hearst currently sources approximately 90% of its magazine paper from North American paper mills. As we are a larger buyer of paper, our purchases provide jobs and economic viability for many communities and companies along the supply chain. We have a very significant economic, social and environmental responsibility and we will not pursue quick, easy, unsustainable solutions to fulfill short-term purchasing needs. Imported paper is selected based on product needs, economics and sustainability. We are sensitive to the ecological costs of long-distance transportation of paper and raw materials and their impact on our carbon footprint.

Forest Sustainabilitybeing green

WHAT DOES ‘CERTIFIED FIBER’ MEAN? The fiber can be traced to its origin and is managed under third-party audited standards ensuring that forests are managed legally and sustainably.

Carbon Footprintbeing green

The Challenge of Global WarmingMany people believe that global warming is the No. 1 issue challenging our environment and our ability to sustain this planet. While automobiles and power generation are the largest contributors of emissions, we are focused on activities we can control and influence.

Determining the carbon footprint of a magazine or newspaper is an extremely complex task. However, based on a number of studies, some preliminary conclusions can be made. The manufacture of pulp and paper is an energy-intensive process and the majority of the carbon dioxide in the magazine manufacturing supply chain is generated at the pulp and paper manufacturing site. Other sources of significant carbon dioxide released in the magazine manufacturing supply chain include transportation of magazines and their disposal. Too many magazines are being incinerated or sent to landfills; hence our strategy of increasing magazine recovery and recycling.

Beyond PaperIn line with Hearst Corporation’s sustainable development strategy, the Information Services group has established a set of policies and processes for obsolete IT equipment.

For security purposes, all used computer equipment is fully cleansed. All company and personal data is deleted, and all software is removed.

Assets that are in good working order but no longer meet corporate standards, or for which we have no use, are donated to charities, schools or other non-profit organizations.

Remaining assets (both working and non-working) are then disposed of through two asset recovery companies. Refurbished assets are resold or used for replacement parts. Unusable equipment is sent to certified recycler sites for environmentally safe disposal. These businesses are compliant with U.S. Environmental Protection Agency (EPA) and New York State Department of Environmental Conservation (DEC) regulations and guidelines.

ManillaIncubated within and backed by Hearst Corporation, Manilla is the leading digital mailbox, working to diminish paper mail. The free and secure service allows consumers to easily manage their household accounts, including financial accounts, utilities, subscriptions, daily deals and travel rewards programs, all from their desktop, tablet or mobile device.

Manilla offers a brand new way for consumers to receive and file their bills and statements more efficiently and at a lower cost to businesses, while also saving paper. Companies spend an average of 75 cents for every piece of mail they send to their customers. This adds up to huge monthly costs and a lot of wasted resources. With Manilla, companies can stop printing and sending regular mail, which allows them to connect more directly with the customer to provide bills, statements and other services.

• Track greenhouse gas emissions at each of our supply mill sites

• Set greenhouse gas reduction targets at each of our supply mill sites

• Encourage increased use of biomass in paper production

• Improve energy efficiency in the manufacture of pulp and paper

• Encourage the use of renewable energy sources to replace fossil fuels in paper production

• Reduce the number of magazines unsold at newsstand via more effective distribution

• Support recycling and recovery programs

REDUCING OUR FOOTPRINT WE ARE WORKING TO:

Our Commitmentbeing green

Sustainability: A Core Value of Doing Business at HearstWe have been determined to learn the right things to do, and to convert them into actions. We believe the following initiatives are fundamental to our success and to the greater health of the planet.

We constructed and moved into Hearst Tower, the first-ever “Gold” LEED-certified office building for core, shell and interiors in New York City. In recognition, Global Green USA, the U.S. arm of former Soviet Union President Mikhail Gorbachev’s environmental organization, awarded Hearst the “Green Building Design Award.” Global Green’s “Designing a Sustainable and Secure World” Awards recognize outstanding advancements in industry, building, media and public policy that promote a sustainable and secure future.

In 2012, Hearst Tower became the first commercial building in New York City to be recognized by the U.S. Green Building Council for achieving both LEED® Gold for New Construction and LEED® Platinum for Existing Buildings.

In 2005, we partnered with the State of California, California Rangeland Trust

and American Land Conservancy to form one of the largest conservation easements (hearstranchconservation.org) in history (82,000 acres) in San Simeon, Calif.

We have been longtime participants in philanthropic tree planting through the National Arbor Day Foundation and New York Restoration Project.

Riverkeeper, an organization devoted to protecting the environmental, recreational and commercial integrity of New York’s Hudson River and vice-chaired by Robert F. Kennedy, Jr., honored us in April 2007 for our support.

The Hearst Magazines UK has two wormeries on the roof of its central London offices, recycling waste matter from the Good Housekeeping kitchens. The resulting fertilizer and compost is sold to gardeners, with the proceeds given to the Soho Family Centre. For these efforts, the company was recognized by the Sunday Times in 2008 as the second greenest company in London, the 10th greenest company in the U.K., and the best big or mid-size company with low environmental impact.

In 2007, Hearst Magazines launched TheDailyGreen.com, a consumer Web site dedicated to earth-friendly living.

In 2011, Canopy and Green Press Initiative named Hearst one of the environmental leaders in the American and Canadian newspaper markets.

Recycling FactsEach month, Hearst Tower recycles on average 68 tons of recyclables and 8 tons of compostable material.

Hearst donates obsolete IT equipment to various charities, schools or other non-profit organizations. Unusable equipment is sent to certified recycler sites for environmentally safe disposal.

Hearst Tower Green FactsHearst Tower is the most environmentally friendly office tower in New York City history.

85% of the Tower’s original six-story structure was recycled for future use.

Hearst Tower’s innovative diagrid system eliminated the need for approximately 2,000 tons of steel, a 20% savings over a typical office building.

Over 90% of its structural steel contains recycled material.

Hearst Tower’s high-efficiency heating and air-conditioning equipment utilizes outside air for cooling and ventilation 75% of the year, as well as Energy Star appliances. These and other energy-saving features increase energy efficiency by 22% compared to a standard office building.

Sensors allow for lights to be automatically turned off when there is sufficient daylight or an office is vacant.

Rainwater is harvested from the Tower’s roof into a 14,000-gallon reclamation tank and is used to replace water lost to evaporation in the office air-conditioning system, irrigate plantings and trees, and feed “Icefall,”

a three-story, sculpted water feature within the building’s grand atrium.

Walls are coated with low-vapor paints. Desks, chairs and other furniture are formaldehyde-free.

Concrete surfaces are treated with low-toxicity sealants.

Office floors and ceiling tiles are manufactured with recycled content.

Green HonorsHearst Tower was honored in the U.S. EPA and NYC Mayor’s Office 2008 Green Building Competition. The Tower also received the Building Owners and Manager Association’s prestigious “Earth Award” and its Pinnacle “Corporate Facility of the Year Award.” In 2010, Hearst Tower earned the Energy Star designation for superior energy performance.

Building Greenbeing green