Walt Disney and Mickey Mouse Partners Statue at Disneyland Resort in
Anaheim, California
The happiest place on Earth. The place for all people. There is something about Disney Parks that makes everyone seem ageless. The parks are a stress reliever, a mood enhancer, a destination where magical memories are made. Walt Disney opened the very first Disneyland in Anaheim California with the goal of creating a land where all immersive experiences are built around storytelling. With six Disney theme parks around the world, Disney is one of the most recognizable brands in the entertainment industry. In this article, we are going to do a deep dive into their ESG (Environmental, Social and Governance) aspects. Is Disney all about the sparkling glitter and pixie dust? Let’s find out.
Environmental
Sustainability in the parks is very important. Disney Parks, Experiences and Products are responsible to make their operations greener and more ethical. Back in 2020, the Walt Disney Company announced a set of sustainability goals for 2030. They focused on different areas of sustainability such as greenhouse gas emissions, materials and sustainable design. At the time of writing, it has been almost two years since they announced their aim: are they on their way to achieving it?
Disney Parks is a leader in creating a positive environmental legacy for future generations. As promised, they did focus on the different areas of sustainability. They are reducing their carbon footprint by following the GHG protocol, specifically improving Scope 3 emissions within the framework protocol. Whereas a lot of companies only focus on greenhouse gas emission intensity, they indeed went above and beyond.
Disney’s 2021 Corporate Social Responsibility report mentions how they are committed to striving for a zero-carbon future. For example, Hong Kong Disneyland installed the largest solar panel site in Hong Kong with over 5000 solar panels. Impressive, huh? In addition, Disney Parks installed Thomas-Edison style LED lights on Main Street USA (the “street” when you walk towards the castle), thereby preserving the nostalgic and vintage aesthetic of the street . Not only does this reduce energy consumption, the magic still remains. This shows how much Disney cares about its parks and every single detail in them, even the lights!
In terms of the attractions themselves, new projects at the parks will be designed with a net-zero future in mind. Their upcoming newest attraction is Journey of Water at Walt Disney World which is inspired by Moana. Not only does it conserve water, but it also brings out the importance of the natural water cycle. Through incorporating sustainable initiatives into attractions, Disney can increase guests’ awareness about sustainability while showing guests the beauty and balance of the natural world.
Social
In 2021, Disney added the key of Inclusion to their Four Keys: Safety, Courtesy, Show and Efficiency. This key was created to make sure all cast members have access to opportunities that help them live well and experience the magic for themselves. However, over the past decade, Disney Parks has been accused of various violations such as unsafe working conditions, severe overtime and paying staff wages below the legal minimum. Despite stating in their 2021 Corporate Responsibility Report that “almost all their hourly full-and part-time employees in our U.S. Parks and Resorts earn a minimum of $15/hour”, employees at Disney say otherwise. About three-quarters of Disneyland cast members say that they don’t earn enough money to cover basic daily living expenses. The gap between the salary of the board of directors versus employee cast members is very big, hence Disney should boost the pay for employees.
Well, that was a negative aspect about Disney. Let’s turn the tables around for a bit. On the other hand, Disney parks are committed to inclusive storytelling through attractions and products. One of the newer attractions that will be opened in 2024, The Princess and the Frog, was reworked from the original attraction Splash Mountain, which was an adaptation of the racist movie “Song of the South”. Multiple petitions urged Disney Parks to rebrand Splash Mountain as Princess and the Frog, such as one that received over 20,000 signatures. In my opinion, although the original Splash Mountain is considered a beloved classic for so many people, the world is changing every day. It is time for diversity to be reflected in all Disney Parks around the world, and by making changes such as this, Disney is finally addressing this issue.
Disney Parks, Experiences and Products also released sensory-friendly, adaptive costumes, and wheelchair coverings, which bring special accessibility features for kids who have disabilities. The fact that Disney allows kids who use wheelchairs or have other accessibility needs to easily transform into some of their favourite characters from Disney is something I admire as a biomedical engineering student. I believe that it is crucial for Disney, as a large entertainment company, to introduce inclusive ranges into their stores, therefore meeting the needs of more guests.
Adaptive Disney costumes and
wheelchair coverings
Governance
Disney Parks’ board of directors is generally diverse, with eight out of fourteen directors on the leadership team being women. Their executive team is 22% racially diverse, therefore, there is definitely more potential to further increase diversity and inclusion within the company’s own operations. Disney Parks has made progress on inclusion in its own company however it could be done better. If we look at one of the ESG frameworks, UN SDGs, Disney Parks’ sustainable goal alignments are clearly shown.
Disney Parks making progress on inclusion in executive leadership teams.
In November 2022, Bob Iger replaced Bob Chapek as Walt Disney Company’s CEO, which was shocking as Iger stepped down as CEO back in 2020. One of the biggest reasons why Chapek was fired was because of his callous response to the lawsuit filed by Scarlett Johansson against Disney for her movie, Black Widow, due to the movie being released on Disney+ at the same time as its theatrical run. This was just one of the errors he made. Not only that, there were internal complaints about Chapek’s leadership, especially regarding Disney’s most recent quarterly earnings report. I think that COVID played a role in his failures, as it caused the revenue of the company to fall. Chapek’s decisions left Disney fans confused, concerned, and infuriated at what Chapek is planning to do to Disney in the future.
With Bob Iger being the current CEO, I believe that he has more knowledge about the company’s workings overall, and hopefully with his leadership, Disney Parks could rework its future.
Did you know Walt Disney World has its own government? This government was created all the way back in 1967 (almost 60 years ago!). Reed Creek Improvement District (RCID) was proposed by our very own Walt Disney. He planned for EPCOT (one of the parks in Disney World) to be a futuristic planned city. He also envisioned using EPCOT to test new concepts for urban living. In order to have more autonomy, Disney decided to create a government body of his own instead of being subjected to the constraints of a governmental body. Therefore, Reedy Creek Improvement District from then on would have total autonomy within its barriers. RCID is responsible for different services such as environmental planning, emergency services, electrical utilities etc. These services are exactly what a normal state/city provides. But, it allows more freedom and flexibility as it provides the services it values on their own. You might think RCID is a good idea however, there had been previous attempts to eliminate the district. There were issues regarding the “Don’t Say Gay bill”, with the resulting controversy throwing RCID down the deep end. I agree that RCID should be abolished. Although they might have more freedom, I think it’s best for the local government to take control of RCID, but local taxpayers shouldn’t be paying for RCID’s debt.
To conclude, Disney Parks faces ESG risks especially in the social and governance aspects because of past controversies. It is vital for Disney Parks to act as a role model to other smaller entertainment companies, thus bringing positive effects on society. I am excited to see what progress Disney makes in these activities and will continue to watch for developments!
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