2012 Environmental Progress Report Hachette Book Group

Hachette Book Group (HBG) is committed to protecting the environment and to the responsible use of natural resources. Accordingly, we have committed to publish this annual report on our progress toward the goals laid out in our environmental policy.

Reducing Climate Impacts
In 2009, HBG committed to reduce total greenhouse gas emissions linked to publishing operations (including paper) 20% by 2020, from a baseline measured in 2008. We’re pleased to report that emissions levels are down 40% against our 2008 baseline. We have adjusted our goal for the 2013 – 2015 period, and believe that the rapid pace of marketplace changes make a shorter term goal more prudent: HBG will aim to reduce our total carbon footprint by an average of 5% annually through 2015, for a cumulative 50% reduction in six years.

Increasing Certified and Recycled Fiber
Our goal was to have at least 20% of our paper be FSC (Forest Stewardship Council) certified by 2012. We’re happy to report that we have far surpassed our target: by the end of 2012 our FSC usage is projected to exceed 80%. By 2015, our goal is to have 90% of the company’s paper be FSC certified.

We had set an aggressive goal for recycled fiber usage – an increase from 3% (our 2008 benchmark) to 30% by 2012 – but have found that the scarcity and poor quality of recycled fiber, as well as the closing of de-inking facilities, an essential step in creating recycled fiber for our books, have made this goal impossible to achieve. In 2011, 8% of our paper was post-consumer recycled fiber. Our goal is to increase to 20% recycled fiber usage for our products through 2016. At HBG we continuously explore alternate sources of supply to meet the challenge of securing adequate recycled fiber for our books.

Protecting Endangered Forests
Our goal in this area is to phase out the use of any controversial sources of paper fiber and require our paper to be free of unacceptable sources as defined by FSC’s controlled wood standard. HBG has changed sources of supply as certain mills have demonstrated inconsistencies in their chain of custody. We will continue to keep close watch on both domestic and international controversies and take action in line with our policy.

Monitoring and Reporting
HBG has an Environmental Task Force that oversees progress toward the company’s green goals and coordinates a comprehensive program of environmental initiatives across many different areas including office recycling, energy usage, product transportation, packaging, employee commuting/travel, etc. We are guided by our industry‐leading environmental policy and we are encouraged that all of our stakeholders have been eager to help us achieve these meaningful improvements.

December 11, 2012

Contact: Sophie Cottrell, VP Communications Director, sophie.cottrell@hbgusa.com or 212-364-1281