THE ADGREEN LEVY
At AdGreen, we offer free resources, training, and tools like our upcoming carbon calculator, to enable the advertising production community to measure and reduce their carbon footprint. We want to continue offering help to anyone who wants it, for free. To do that, we need to introduce a small voluntary levy on production spend, starting June 1st 2021, to be paid by pioneering advertisers who are leading the charge on reducing their impact on the environment.
If you already know about the levy and are looking for registration information, click here. Want some help communicating the key details internally, or with your clients / principal production partners? Check out our resources here. You can also rewatch our levy webinar here.
WATCH OUR ANIMATION
Want to know more about the AdGreen Levy? The easiest way to get up to speed is to watch this animation made by our friends at cain&abelDDB.
Watch, share and read more below about how our Levy works and why it's needed.
WHAT IS THE LEVY?
The AdGreen Levy is a recommended 0.25% of the cost to produce an advertising asset – that’s just £2.50 per £1,000 spent, and is capped at £2,500 per production.
The levy is paid to those producing work for the advertiser, and then passed onto AdGreen to enable us to continue supporting the UK advertising industry in reducing emissions from production.
And the more advertisers who contribute, the lower we can make the levy percentage!
Every industry has a part to play as we collectively reduce our environmental impact in line with Government legislation to hit net zero by 2050.
AdGreen does not act as a consultancy, rather it is a project designed to enable the entire UK advertising production community to measure and reduce its carbon footprint associated with production. The more people that have access to our resources and training, and the more organisations who record their data in our carbon calculator tool, the clearer picture we’ll have as to how we’re getting on and how we can support further reductions with infrastructure projects like Creative Energy.
The levy contributions we receive will mean that we can continue doing this.
Once they have indicated that they would like to contribute, Advertisers pay the levy along with the other items on their first production cost invoice.
The levy is added to production cost estimates on relevant items by the advertisers’ UK based Principal Production Partners (PPPs) who have registered with us, and invoiced to the advertiser once signed off. The payments are collected on AdGreen’s behalf by the PPPs and passed to us on a quarterly basis (the first being those collected from July 1st - September 30th 2021).
In most cases the PPP will be the advertiser’s advertising agency, but it could also be a production company working directly with the advertiser for example. For a full definition, see the glossary in the levy guide.
WHAT'S INCLUDED AND WHAT'S EXEMPT?
It is recommended that all costs to produce the advertising asset are included in The AdGreen Levy.
All costs to use, store and, transmit the advertising asset, as well as the principal production partner’s insurances and personnel costs (unless included in the production cost estimate) are excluded. This means things like cast, music and stock footage usage fees, legal reviews, and clearest fees aren't subject to the levy - and media spend is also not included.
The levy guide has all of the fine print.
WHAT WILL YOU CONTRIBUTE?
Use our calculator to quickly work out what an advertiser's contribution to The AdGreen Levy will be. Don't forget to exclude PPP insurance, plus any usage, transmission and storage costs, along with media spend.
For tax purposes, The AdGreen Levy qualifies as a normal advertising expense as per other production costs, however it is not liable to VAT.
Please note this is an indication of your contribution, contact your Principal Production Partner to discuss further. Payments are made via your principal production partner - please contact them directly for queries relating to the levy amount and payment. For any other queries please contact AdGreen at firstname.lastname@example.org
Here are a few things that might help...
- Levy briefing deck: A brief AdGreen overview, as well as key levy details
- AdGreen 1-pager: Covering the bigger picture: the carbon emissions problem, solution, the levy's role and the infrastructure change AdGreen will support
- AdGreen 2-pager: Covering what AdGreen is, key offerings, who they're relevant to, key talking points, and the main calls to action
- Template text for Principal Production Partners: If you're a potential collector and would like to communicate why you'd like to see your clients contribute, email us and we'll send you something as a starting point
- Template text for Advertisers: If you're a potential payer and would like to communicate your intentions to your principal production partners, email us and we'll send you something as a starting point
- Budget Template Guide: A 1-page PDF to help principal production partners understand how to incorporate the levy line into existing budget templates
- Template Contract Addendum: Amend as needed and attach to an existing production contract
If you’re a Principal Production Partner and would like to facilitate levy collection, you’ll need to register so that we know that you intend to collect payments from your clients and hold them on our behalf until you pass them to us each quarter. Submitting the form constitutes consent to be contacted quarterly by AdGreen regarding any payments due to us.
Once registered, we recommend discussing the addition of The AdGreen Levy to production cost estimates with your clients. If you need support please email us. You can also download and tweak a template contract addendum here.
Advertisers are not required to register, however, to give the AdGreen team oversight as to the level of engagement in the industry, we request that you register with us if you intend to contribute.
Advertisers are reminded that submitting the form doesn’t constitute agreement to pay the AdGreen Levy to their principal production partners - please make your intent clear to the relevant organisations directly too. You can also download and tweak a template contract addendum here.