1. Royal Mail Sustainable Advertising Mail Overview

2. 2 what do we mean by sustainable advertising mail………….. Sustainable Advertising Mail allows customers to minimise the environmental impact of direct mail campaigns, helping to support mailers’ ‘green credentials’ and help to offset the additional costs of a sustainable approach

3. 3 Our objectives for Sustainable Advertising Mail………. Help mailers achieve sustainability goals Reduce the environmental impact of direct mail Secure the future of mail as an advertising media Help to increase the use of sustainable resources & materials Help to reduce the amount of mail in the waste stream

4. 4 The benefits ………….. Good for customers - because it creates mail that is easy to recycle and will help increase recycling levels to over 80% Good for the environment - because it supports sustainable practices, reduces landfill, and reduces the environmental impact of Direct Mail Good for your brand - because over 60% of recipients will consider your brand more responsible Good for your postal costs – because it offers lower postal prices to help offset any additional costs associated with an environmentally-friendly approach Supports PAS2020 – because it’s aligned directly to the new standard, it can support you in your journey towards PAS2020 certification

5. Product specification

6. 6 using Sustainable Advertising Mail... Sustainable Advertising Mail can be requested via your account handler, who will support you through the set-up process We will provide you with a link to the User Guide and Terms & Conditions which will tell you what you need to do to prepare for Sustainable Advertising Mail We also ask that for each of your mailings, you include a ‘seed’ item which will be sent to our central team of experts

7. 7 Keeping on the right track…………….. So that we can make sure you are on the right track with Sustainable Advertising Mail, in addition to our mail verification checks, we will also carry out an audit to check that you are able to meet the specification To do this, we may need: -Sight of the relevant documentation which supports your compliance to the Sustainable Advertising Mail specification -On-site access to carry out a data health-check -To review your ‘seed’ mailings We will always give you notice of any audit If you would like us to take a look at your documentation before accessing Sustainable Advertising Mail, please speak to your account handler who can help you with this

8. Improving targeting 1.Where the data is not from a consent-based file, a documented procedure for suppressing customer and prospect data against the Mail Preference Service (MPS), including MPS deceased, must be in place and files checked 30 days or less before the item that uses the data is delivered to the recipient. For mail produced overseas where the transit time to the UK is greater than 30 days, mailing files should be checked for recency 30 days or less before the items are despatched to Royal Mail and transit time to the UK should be no longer than 90 days Onsite visit to undertake data health-check 2.Keep and maintain an internal suppression file to ensure that customers and prospects who request to opt out of your mailings are properly logged and check this data 30 days or less before the item that uses the data is delivered to the recipient. For mail produced overseas where the transit time to the UK is greater than 30 days, the data must be checked 30 days or less before the items are despatched to Royal Mail and transit time to the UK should be no longer than 90 days Onsite visit to undertake data health-check 3.Ensure all items are fully and accurately addressed and postcoded in accordance with Royal Mail’s Postcode Address File (PAF®) and to the levels determined in the Mailsort User Guide. Address Accuracy listed on Computer Planning Report (CPR) / line list. May also include onsite visit to undertake data health-check Meeting the Sustainable Advertising Mail Specification: Entry Level …..

9. 9 Meeting the Sustainable Advertising Mail Specification: Entry Level……… Sustainable resources and materials 4.All paper products used must contain recycled fibre from recovered waste paper and/or virgin fibre sourced under a certified chain of custody conforming to a certification scheme approved by the Defra funded Central Point of Expertise on Timber Procurement (CPET). Declaration, certificate or invoice from supplier confirming adherence to criteria above. Eg FSC certification 5.All paper products must be produced using non-chlorinating bleaching methods: Elemental Chlorine Free (ECF), Processed Chlorine Free (PCF) and Total Chlorine Free (TCF) including oxidizing and reductive bleaching. Declaration, certificate of invoice from supplier confirming adherence to criteria above

10. 10 Meeting the Sustainable Advertising Mail Specification: Entry Level…………. Sustainable resources and materials 6.All paper products used in the mailing must be sourced from paper mills that operate an environmental management system conforming to BS EN ISO 14001 and/or the Eco-Management and Audit Scheme (EMAS) Certification from paper mill 7.Printers, mailing houses or in-house mailing facilities used to produce the mailing must have: i. A documented commitment to environmental management and baseline for environmental performance ii. Identified appropriate environmental legislation and other environmental requirements (e.g. standards, codes of practice and/or guidance) and have controls in place to ensure compliance to them iii. Developed environmental objectives, targets and programmes

11. 11 Meeting the Sustainable Advertising MailS pecification: Entry Level……….. Recyclability 8.All paper elements of the mailing, including window and padded envelopes, must be recyclable. 9.No brown paper or brown paper envelopes (including manilla). 10.No plastic envelopes (including polywrap). 11.No laminate finishes must be used in the mailing. 12.The item must have less than 90% ink coverage. Declaration, report from supplier (eg creative agency/ printer) indicating ink coverage percentage. NB PAS 2020 provides further guidance on ink coverage and software available to check percentage 13.All items must display a statement and/or logo (such as Recycle Now) on the outside of the mailing that encourages the recipient to recycle it.

12. 12 Meeting the Sustainable Advertising Mail Specification: Intermediate Level…………. Improving targeting 14.Customer and prospect data used in a mailing must be checked against one or more commercially available deceased and gone away suppression file (including business gone away suppression files) 30 days or less before the item that uses the data is delivered to the recipient. Onsite visit to undertake data health-check 15.Each item must clearly incorporate information as to how the addressee can register to unsubscribe preference options relating to any or all of the sender’s legal entity brands and/or products for a period of one year. 16.Any items returned from previous mailings as deceased, gone away or requesting opt-out must be recorded and removed from future mailing lists within 3 months of receipt. Onsite visit to undertake data health-check 17.Ensure at least 90% of items are fully and accurately addressed and postcoded in accordance with Royal Mail’s Postcode Address File.Address Accuracy listed on CPR / line list. May also include onsite visit to undertake data health-check

13. 13 Meeting the Sustainable Advertising Mail Specification: Intermediate Level………… Sustainable resources and materials 18.All printers, mailing houses or in-house mailing facilities used to produce your mailing must have an environmental management system conforming to BS EN ISO 14001. Copy of ISO certification for printer / mailing house/ in-house mailing facility Recyclability 19.No ultraviolet varnish finishes must be used in the mailing Declaration, certification confirming adherance to criteria above – eg printer 20.No use of rubber-based adhesives. Declaration, certification confirming adherance to criteria above- eg printer, envelope manufacturer,

14. sortation and delivery options…… Sortation Sort to Low Sort OCR – 86 selections Low Sort Barcode – 86 selections Low Sort Mailmark barcode – 86 selections High Sort – 1529 selections Delivery 1 st Class delivery aim of next working day 2 nd Class delivery aim within two working days after posting Economy (sorted only) Delivery aim within four working days after posting

15. 15 formats, volume and address accuracy…… Format (sorted products only) letter large letter Volume 4,000 letters or 1,000 large letters Address & Postcode accuracy 90% - Entry Level 95% - Intermediate Level

16. Product sortation

17. the Royal Mail Selection Files…… These are the files that provide a unique numeric code used to sequence addresses. Low Sort: machine-readable 86 selections OCR or Mailmark barcode for letters and large letters Barcode for letters High Sort: manual 1529 Direct selections 86 Residue selections Minimum items per direct selection (sortation discount) 50 letters 10 large letters

18. sortation criteria for low sort….. one level of sortation * if trays are to be used then an average number of items across all selections mailed to in that posting must be a minimum of 100 letter or 25 large letters if this cannot be achieved then bags must be used Selectionsminimum postcode & address accuracy level (inc DPS) Minimum volume* (trays) Minimum volume (bags) OCR or Mailmark 8690% 100 letters 25 large letters 1 Barcode8690% 100 letters 1

19. sortation criteria for high sort…… Two levels of sortation available Presentation*: if trays are to be used then an average number of items across all selections mailed to in that posting must be a minimum of 100 letter or 25 large letters if this cannot be achieved then bags must be used Pricing: Minimum of 50 letters required for a ‘Direct’ discount Minimum of 10 large letters required for a ‘Direct’ discount Selectionsminimum postcode & address accuracy level Presentation - Minimum volume* (trays) Pricing - Minimum no of items Residue86 90% 100 letters 25 large letters 1 Direct1529 100 letters50 letters 10 large letters

20. 20 sortation to the Selection Files……. Approx. % Items to Direct Selections Assumes 100% Postcoding & National Spread Mailing Size% Letters (50) % Large Letters (10) 10,000 20, 000 30,000 50,000 100,000 250,000 0 2 6 21 80 100 24 83 98 100

21. Product presentation

22. 22 mailpiece design…… Payment channel Post Paid Indicia (PPI) and stamps - sorted options Service indicator PPI – 1st, 2nd or M – The indicator for Economy Mailings Return address Standard selection code (SSC) Optional for High Sort and Low Sort Design constraints OCR, Mailmark and Barcode

23. 23 paperworkrequirements…… Please indicate that your mail is Sustainable Advertising and at which level on the following: 1.Cage Card - These are attached to the cages and provide information such as the job number, service speed, product and options, the segregation codes and the account number. 2.Line Listing - a requirement for sorted mailings, which details the selections you are mailing to and the number of items and the number of bags, trays or bundles, going to each selection. 3.Computer Planning Report - the report produced when a computer sorts an address list in preparation of a mailing 4.OBA Sales Order (by using the correct product codes) - a specific online business account giving you access to our secure online system through which you can order the products on account

24. 24 presentation options – sorted…… Option A CAGE FACE & BUNDLE SECURELY BAG & LABEL SORT Option B CAGE TRAY & LABEL FACE CORRECTLY SORT Option C Option D SORT FACE & BUNDLE SECURELY CAGE SORT IF OVER 10mm THICK AND MIN OF 200 ITEMS PER SELECTION, DO NOT BUNDLE BAG ALP CAGE

25. Containers for shipment…… Sorted trays* or bags for letters trays* or bags for large letters up to 10mm in thickness bags or Auto Levelling Parcel containers – (ALP)’s^ for large letters over 10mm large letters or High Sort letters may be presented as segregated bundles *you need an average of 100 letters or 25 large letters across all selections mailed to, if you cannot meet this then use bags ^ only with pre-agreement

26. presentation – summary….. Trays not permitted for large letters over 10mm thickness and can only be used if there is an average number of items per selection across all selections being mailed to 100 Letters 25 Large Letters If you cannot meet this requirement then you must use bags Bags permitted for all sorted products ALPS machine-readable Large Letters over 10mm thick Segregated bundles permitted as current including for Low Sort Large Letters, not Low Sort Letters Unwrapped permitted as current for High Sort

27. Payment & pricing

28. Payment options…… All Post Paid Indicia (PPI) remain the same i.e. 1 st 2 nd and M indicating service speed and including the ‘Delivered by Royal Mail’ logo Cheques not permitted and will only be allowed for Business Mail with no additional options. Meters no longer permitted for any of the sorted product options Stamps are still permitted & P3484 must be used Volume Related Discounts will now be allowed on some residue sort products

29. Examples of payment indicia……

30. Sustainable Advertising Mail pricing…… Price is determined by 1. the Advertising product chosen High Sort option Low Sort option 2.The Sustainable Advertising Mail% discount based on Format (letter, large letter) Weight (0-100, 101-750) Direct or Residue Entry or Intermediate Level Calculate the postage as follows: 1.Work out the Advertising Mail price 2.Then reduce this price by the percentage discount for Sustainable Advertising Mail

31. 31 IN SUMMARY…….

32. 32 Summary….. Options available High Sort Low Sort Levels Entry Level Intermediate Level Formats letters large letters Machine readability letters – OCR, Mailmark and Barcode large letters – OCR and Mailmark

33. 33 Royal Mail support….. Account handler Product literature User Guide Royal Mail Technical helpline 0207 371 6957 Technical Consultant - Mark Pearce 07801 777 503

34. 34 Questions?