Key Impact Points:
- Leading ad agencies have signed nearly 700 contracts with fossil fuel companies while promoting green initiatives for other clients.
- InfluenceMap and Clean Creatives report significant conflicts of interest in ad agencies’ fossil fuel-related work.
- Brands with net-zero goals are urged to scrutinize their PR and marketing partners for ties to fossil fuels.
Ad Agencies Under Fire for Climate Conflicts
The world’s largest advertising agencies are facing scrutiny for their dual roles in promoting climate-friendly initiatives while maintaining lucrative contracts with fossil fuel companies. Major firms like WPP, Omnicom, and Publicis have been called out for conflicts of interest in reports by InfluenceMap and Clean Creatives.
Revenue Ties to Fossil Fuels
According to InfluenceMap’s analysis, these agencies work with companies that oppose clean energy regulations. WPP, for instance, represents the American Petroleum Institute (API), which has resisted emissions reduction policies, even while working for green-minded clients like PayPal.
“It is critically important that agencies understand how exposure to obstructive clients calls into question the authenticity of their own climate commitments,” said Faye Holder of InfluenceMap.
Clean Creatives’ 2024 “F-List” report highlighted nearly 700 new fossil fuel-related contracts, with WPP leading the pack at 79 contracts, followed by Omnicom (74) and Interpublic Group (50). Despite these ties, over 1,250 agencies have pledged not to work with fossil fuel clients.
Brands Rethink Agency Relationships
Progressive brands are beginning to question their partners’ commitments. Patagonia has a strict policy of working only with firms aligned with its environmental ethos.
“Those relationships, built on trust and transparency, wouldn’t be successful if our partners were also doing work that undermines our purpose of being in business to save the planet,” said Patagonia spokesperson Gin Ando.
Seventh Generation has also evaluated its marketing partners, asking detailed questions about fossil fuel ties and Paris Agreement commitments.
“Getting the agency to change, that is where the greatest impact lies,” said Kate Ogden, Seventh Generation’s head of advocacy.
How Brands Can Take Action
Brands committed to sustainability can take several steps to ensure alignment with their advertising partners:
- Ask Direct Questions: Understand if agencies represent fossil fuel clients and their policies on climate commitments.
- Review Agency Practices: Examine agencies’ emissions reduction strategies and their client portfolios for potential conflicts of interest.
- Use RFPs Strategically: Incorporate sustainability priorities into the agency selection process and contract renewals.
Jason Parkin, founder of Clean Creatives signatory Compose[d] Creative, emphasized: “This is something that every brand should be doing, especially those concerned about the climate crisis.”
By fostering honest conversations with agency partners, brands can ensure that their sustainability goals are not undermined. As Ogden pointed out, “It might be a lighter lift than you realize.”
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