1. America’s Premier Multi-Channel Marketer
Continuing Our Commitment to
Sustainability & Corporate
Responsibility
ANNUAL STATUS REPORT
2011

2. A Dedicated
Leader
At Publishers Clearing House we are committed to operating our business in a manner that conveys
our dedication and commitment to social, ethical and environmental responsibility. We continue to
conduct our operations consistently with criteria established by the Direct Marketing Association.
As a leader in the direct marketing field we strive to set a standard in our business practices that
others may be inspired to follow.
Paper Procurement allows customers to view their order history online was upgraded.
The enhanced functionality features include: combining payments
and Use of several orders into a single payment, which saves on
transaction costs, order status tracking, confirmation e-mails, and
Paper procurement is at the forefront of our marketing campaign opt-in or out.
sustainability efforts and we endeavor to source and
use only certified paper in mail promotions and our Energy
packaging, to reduce our consumption, and to seek
paperless alternatives whenever possible. Conservation
Certifications - Paper used in our promotional mailings and In 2010 our sustainability efforts focused on reduction
billing programs is sourced from suppliers certified by the FSC in power usage through lighting efficiencies in all of
and/or the SFI – the two organizations whose evaluations are our facilities, automated HVAC control systems,
most appropriate for our operations. These certifications ensure upgrades to our IT system, printers and monitors.
that our vendors are actively sourcing fiber and paper that
are 100% chain-of-custody certified in accordance with Port Washington - A lighting replacement upgrade in our 101
environmentally responsible practices. As the available quantity of Port Washington location is currently saving over $5,000 per
certified content expands, our suppliers are correspondingly month from the building’s energy usage profile since the start of
increasing the amount of certified content we are able to use in the project. The reduced consumption is delivering an estimated
our printed promotional materials. carbon emission reduction of 26 tons per month. Our building at
382 will reach its ROI at an estimated 9 months, 2 months
For packing and shipping we have maintained our commitment ahead of schedule and will save over $6,000 per month from
to use corrugated cardboard that is either SFI certified or the buildings energy usage profile. This is a carbon emission
manufactured from 100% recycled materials. reduction of 27 tons per month.
Reduced Office Paper Consumption - In 2010 we posted Syosset - Installation of automated controls for heating,
a goal of reducing office paper consumption by 10% by limiting ventilating and air conditioning (HVAC) systems at our 6901
usage of copiers, duplex printing, and maintaining electronic files Syosset building allows for more efficient control of our roof -
instead of paper files whenever practical. This goal was achieved top units, significantly reducing the running time of this
and confirmed by year-to-year centralized office paper order data energy intensive equipment, which had fans on a 24/7
statistics. operating cycle. With the new system, individual thermostats
and temperature sensors provide readings that give us
Among the most noteworthy accomplishments was a reduction
scheduling options and allow us to maximize operating
in mainframe print reports resulting in 286 fewer boxes of
efficiencies.
computer paper per year – an annual savings of $10,000.
Mainframe Improvements – Office Equipment
Internet Alternatives and Bar Code Benefits - Since May Upgrades - Business transactions are now being processed
2010, when we implemented a new E-Bill Reminder, we have on a new mainframe unit that reduces power consumption by
reduced the number of bills sent to those who opt to pay online 10% over the previous model and provides significant
by approximately 400,000. Annually we anticipate this process performance gains that allows for lower overall costs per trans-
will reduce our mailed bill volume by 600,000. action.
Currently, we estimate our use of confirm bar code has resulted With a target of reduced energy consumption and cost, in
in 37,000 fewer bills sent annually. In 2011, PCH will be 2010 PCH continued the update of our office equipment with
implementing the USPS Intelligent Mail Bar Code (IMB). Our new Canon multi-function print devices that print, scan, and
plans are to incorporate this Confirm logic technology for our copy using a fraction of the resources that the old models
Credit and Collections program further reducing the number used. In addition, all office and cubicle PCs utilize LCD
of mailed invoices and bills. monitors which are more user-friendly and consume up to 75%
less electricity than the CRT computer displays they replaced.
For 2010 My Account, a paper-free internet interface which

3. Corporate Freight
Recycling Consolidation
Recycling of everyday waste is an ongoing and PCH employs transportation policies and practices
ever-growing effort at all of our buildings and leased guided by objectives to reduce vehicular emissions,
office space. decrease traffic congestion and improve air quality.
Office Buildings - At our corporate offices in 2010 we
collected over 75 tons of paper and cardboard for recycling that
otherwise would have been sent to landfills. Our recycling and
waste management initiatives also include glass, metal, plastics,
batteries and fluorescent light bulbs.
Mail Processing - In the past year at our Syosset mail
processing facility, over 950 tons of reply mail and other
In support of this principle, we look for opportunities
customer correspondence was shredded and redirected from
to shift volumes to rail and sea transport, consider
landfills to recycling centers.
geographic location when selecting interacting
E-Waste Disposal - We maintain full compliance with our suppliers, and plan for maximum efficiency when
municipal recycling programs including the responsible disposal our products are drop-shipped to our customers.
of unusable electronic equipment. Our e-waste vendor is
Domestic Freight - Our freight vendors include leaders in
certified for the environmentally safe disposal of computer
the field of reduced energy transport. They make extensive use
equipment. During 2010 more than 25 pallets of computers,
of alternative fuel vehicles and hybrid delivery trucks and
monitors and printers were sent to recycling facilities for dispos-
promote a wide array of strategies that help reduce the
al or repurposing.
environmental impact of distributing and shipping products.
These strategies include load and mode optimization, which
reduces mileage and container optimization, which maximizes
shipping efficiencies.
We were also able to optimize annual freight consolidation with
respect to inbound paper-based component freight, outbound
product packages and outbound mail.
Our outbound parcel shipments are consolidated and
bed-loaded on 53' trailers for maximum utilization and hauled to
20 FedEx hubs throughout the country. Additional freight from
other shippers are added to these trailers for drop off at nearby
USPS facilities; again maximizing efficiencies while conserving
Warehouse Facility - Our product warehouse vendor, FDC, energy and reducing transport mileage.
oversees a recycling program for all of PCH’s corrugated
packaging material. The amount of corrugated paper processed International Shipments - In conjunction with UPS-Supply
through FDC averages 20,000 pounds per week. FDC also Chain Services we continually optimize overseas freight
oversees a recycling program for all of PCH’s non- consolidation and maximize the usage of larger containers for all
corrugated paper products and shrink-wrap that are recycled in imported freight shipments. Containers arrive in either Seattle or
a manner that meets all accepted environmentally responsible Vancouver and are then shipped by rail to Minneapolis. Since
standards. All aluminum waste is sent out for recycling. Wooden 98% of our containers are full container loads (FCL), and our
pallets are refurbished with some being returned to us for future ground transportation emanates from Minneapolis rather than
use and the balance being retained by the repairer Chicago, we’re saving over 300 miles per container in ground
as compensation. Used batteries are returned to the supplier transportation.
for appropriate EPA-approved disposal. We segregate
chemical related return product and fluorescent lights (mercury)
and contract with waste management vendors for EPA
approved disposal.

4. Direct Marketing Association
– Industry Advocate
The DMA’s sustainability List hygiene practices used:
mission includes the • A notice in mail solicitations about how individuals can stop or
establishment of best modify future mailings
practices guidelines
• Use of in-house do-not-market lists and prompt action
for environmental and on requests from consumers who choose not to receive
social responsibility, our mailings
recycling, list hygiene,
• Use the USPS Mail Preference Service monthly report to
and mailing list opt-out remove consumer prospects from mailing lists.
options. Our commitment to these principles includes
participation in the following initiatives: • Improve relevancy by effectively applying data analysis tools,
such as predictive models and/or recency-frequency-monetary
“Recycle Please” a nationwide public education program that segmentation, prior to mailing to identify and suppress likely
asks DMA members to prominently display the “Recycle non-responders.
Please” logo on their catalogs and direct mail pieces for the • Maintain accurate, “clean” mailing lists by using USPS or
purpose of encouraging consumers to recycle them after commercially equivalent files for ZIP Code correction, address
reading. standardization, change of address, address element
The “Green 15” Pledge - marketers and suppliers attest that correction, vacant address identification, delivery sequence
their organizations are taking certain steps throughout the end-to- file and/or address correction requested, etc.
end direct marketing process to improve their environmental foot- • Intelligent Mail Bar Code (“IMB”) for more accurate and
print and “triple bottom-line” performance (people, planet, profit). efficient mail delivery
Green Initiatives Green Data Center - An ambitious vision for
greater efficiency highlights Data Center green
In 2010 the PCH Green goals for 2011. Among the projects are:
Team launched an Office
• Development of a monitoring system to analyze and track
Paper Reduction Initiative
resource usage
with a goal of reducing PRINTOU
TS!
TURN OFF
LIGHTS!
r office or
FEWER
paper use by 10%. This
If you’re
reports
receivin
you don
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e remove
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d
of
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nee • Design a system that can change resource consumption
leave you e hav
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the
nce room
the lights.
benchmark was achieved
, turn off
from dist
on demand
and for 2011 additional • Replace legacy systems with more energy efficient systems
BOTH SID
measures will be explored
ES! USE YOU
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OR MUG!
or mug
• Deploy new applications to high efficiency blade servers to
COPY ON r own cup
possible,
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both side
copying
.
s to further reduce paper
use Bring you ead of using
to work
styrofoa
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m or pap
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increase computational density while lowering overall
use. The Green Team also Following these few
resource consumption
introduced the 5-Step Go simple guidelines will cut
company waste, save on energy
and paper
costs, and help in our efforts to reduce
our
carbon footprint. And when you
Green At Work guidelines
At Work you’ll also be doing your
maintain PCH’s commitment to be
Go Green
part to
an
• Virtualized systems to save money on new hardware
recycle!
purchases while improving system performance, operational
citizen
ptacles environmentally responsible corporate
cling rece
at a company Lunch &
friend
Use recy out and enhance our standing as a trusted
through
provided g. of local environmental associations.
the buildin
Learn and plans to efficiency, and decreasing energy consumption
increase awareness of • Analyze system driven print jobs to look for opportunities
these easy-to-follow energy and resource savings for additional reductions
tips in 2011. • Incorporate print management functionality that includes
Keeping Current and Staying Informed - In 2010 we duplexing and more efficient multi-function print devices
invited R.R. Donnelly, Canon U.S.A. and Verizon Business to • Continuation and expansion of our process of safe disposal of
our company headquarters where they presented detailed e-waste from our offices
accounts of their sustainability initiatives and programs.
These sessions were enlightening and informative and Automated Electronic Routing of Graphics Files -
confirmed that we have chosen to partner with companies A new digital asset management process in
who share our commitment to environmentally responsible combination with our in-house network interface will
business practices. give us yet another way to reduce paper use in 2011.

5. Sharing
A Goal
Our suppliers’ efforts include a commitment to partner with vendors who share our goal of conducting
business in an environmentally responsible and sustainable manner and to reduce and control energy
use, carbon emissions and water waste.
Canon U.S.A. - Office Printers Verizon Business - Communication Systems
Canon’s commitment and contribution to the Verizon Business provides the technology, support
preservation of the environment and to the world and networking needs for our communication
community are an integral part of their management systems. With a global presence that includes more
structure, product design, manufacturing, and than 200,000 employees and over 27,000 buildings,
corporate culture. This commitment has inspired Verizon utilizes and promotes sustainable business
many special corporate programs at both global and practices that reflect their commitment to the
regional levels and we are proud to partner with economic, environmental, and social responsibilities
Canon as the exclusive supplier of our office they have to their customers, shareholders,
printers. Canon has undertaken several initiatives to employees and the general public. Their actions and
reduce the environmental impact of operations and accomplishments include:
the products produced including:
The 2009 appointment of a Chief Sustainability Officer.
Canon’s new imageRUNNER multi-function devices used at
PCH use significantly less electricity, allow for default duplex Expanded use of alternative fuel vehicles in their fleet of more
printing, have reduced CO2 emissions, and utilize recycled than 42,000 trucks.
plastics from retired equipment. Elimination of over 27,000,000 paper bills by converting
Bio-plastic development – these plant and mineral-based 2,500,000 customers to electronic billing statements.
plastics incorporate limerock substances into product packaging Installation of one of the nation’s largest fuel cell sites in their
and parts.
Garden City office is used to create clean energy for multiple
Zero landfill waste goal – Canon has created a collection/ facilities.
recycling program for Canon Inkjet and Toner cartridges. To date
they have collected more than 190,000 tons of cartridges from Development of the first cell phone to be certified carbon free.
around the world. Constructed from recycled content and corn-based plastics this
phone also runs applications that help promote green activities.
The Clean Earth Crew – comprised of Canon U.S.A.
employees who volunteer their time in communities nationwide 2010 recycling initiatives that encompassed more than 30
for conservation activities involving parks, beaches and nature events and included over 4,000 employees who collected over
preserves. Locally, the Clean Earth Crew has contributed to 170,000 pounds of recyclable material and 500 boxes of excess
cleanup efforts at: office supplies that were donated to charities.
• Sands Point Preserve • Vanderbilt Museum • Robert Moses
State Park • Jones Beach State Park • Riverhead Foundation for
Marine Research and Preservation • Alley Pond Environmental
Center • Cold Spring Harbor Fish Hatchery & Aquarium
Print management software that reduces paper consumption
and associated print costs. This software can increase
efficiency, save resources, and lower costs by defaulting to two
sided printouts, automatically selecting the most cost-effective
printer and defaulting to black and white.

6. Customer Privacy and Consumer Protection
In the mail and online we continue our commitment to best practices for privacy and ethical
business behavior.
Publishers Clearing House is a member of the Online Trust Association (OTA) whose mission is to create and
promote business practices and technologies to enhance online trust and the vitality of e-commerce and online
services. Formed in 2004, the OTA is a global non-profit organization representing the Internet ecosystem,
supporting user choice and controls, protection of critical infrastructure, privacy and data governance, promoting mar-
keting best practices and self-governance. In 2010, PCH along with Cisco, Microsoft, Symantec, VeriSign and oth-
ers, was among the companies recognized for their leadership and contributions to the trust ecosystem.
Transparency and a positive user experience are at the forefront of our internet operations. PCH is proactively
exploring advertising strategies that make advertising opt-out options readily accessible for all online consumers. To
such end we recently launched a custom Advertising Option logo that offers a simple and transparent way to choose
not to have online activity tracked for the purpose of serving ads and content.
In 2010 the FTC invited PCH to become one of a small group of private companies (along with Xerox and American
Express) to contribute to their Consumer Sentinel Fraud database. The database, maintained by the FTC, is the
central repository and source of complaint investigation for the majority of law enforcement offices across the U.S.
and Canada. Contributors include most state consumer protection offices, the FBI, the Department of Justice and
regional Better Business Bureaus. This database will help law enforcement target scammers who illegally use our
name. The “halo” effect of partnering with the FTC in their law enforcement efforts should also prove to have a
positive benefit with the consumer protection community and the media.
A Tradition of Charitable Giving
The philanthropic spirit of the company’s founders, Harold and LuEsther Mertz
lives on.
The philanthropic spirit of the company’s founders, Harold and LuEsther Mertz (both deceased), lives
on with nearly half of the company's profits going to charitable causes ranging from the arts to social
services to the environment, largely through charitable trusts established by company founders and their
families. The New York Botanical Garden, Lincoln Center for the Performing Arts, the National Audubon
Society and the Alzheimer's Disease and Related Disorders Association are just a few of the major
beneficiaries of PCH's more than 50 years of success. Recognition of this support of the arts can often be seen in credits
preceding programs on Public Television for the LuEsther T. Mertz Charitable Trust.
Another of these charitable organizations, The Mertz-Gilmore Foundation, funds a grant program that supports
causes including the substantial reduction in global warming pollution through sustainable policy and practices. Priorities
include effective implementation of the Regional Greenhouse Gas Initiative through state and regional efforts in the
Northeast. Recipients of such grants in 2010 included: the Conservation Law Foundation, Environment Northeast, Union of
Concerned Scientists, Earthjustice, Global Green USA, Environmental Law and Policy Center, The Sierra Club Foundation
and the National Parks Conservation Association.
PCHlotto Celebrates Earth Day with Help For Haiti.
In celebration of Earth Day 2010, PCHlotto partnered with Trees for the Future to donate and
plant 50,000 trees in Haiti. Since 1989, Trees for the Future has been helping communities
around the world plant trees, and the recent earthquake in Haiti required a renewed and urgent
focus to be placed on the country’s devastated environment. PCH is proud to
contribute to restoration efforts.
PCHlotto members were able to play the Grow Your Green Instant Win Game which featured an eco-friendly online game
card. Traffic soared on PCHlotto with game plays and page views at all-time highs and Publishers Clearing House was able
to help create a healthier environment.