Sustainability within the advertising industry
Can the advertising industry become more sustainable?
In an era where consumer brands need to be seen as more ethically responsible than ever to win the hearts and minds of their target audience, it’s important to look at the sustainability credentials of the companies who are responsible for shaping brand messages to the consumers.
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Advertising industry has room for improvement when it comes to sustainability.
The advertising industry is one facing many challenges both from outside and within. From CEO reshuffles, decline in overall spend, global industry consolidation, intense rivalry and technological changes (think personalisation and data), the industry has a lot on its plate already.
But there is another challenge that remains relatively unexamined; in an era where consumer brands need to be seen as more ethically responsible than ever to win the hearts and minds of their target audience, it’s important to look at the sustainability credentials of the companies who are responsible for shaping brand messages to the consumers.
All the advertising companies selected for the analysis scored lower in sustainability (average of 42) than the Sustainable Platform database (of 17,000 listed companies globally across all industries) average SDG score of 52.
The leader in the group is British based multinational communications powerhouse WPP, with an SDG score of 47. Tied for second place are Dentsu and Publicis Groupe with SDG scores of 44.
Just behind are The Interpublic Group of Companies (IPG) with SDG score of 43 and Omnicom Group with SDG score of 42. Finally M&C Saatchi scored the lowest at 31.
The sector's largest contribution to sustainability is overwhelmingly via its services contribution to the basic need of communication.
The sector's main controversial exposure, while low, comes from its exposure to fossil fuels, mainly oil. This fossil fuel exposures come from a company's operation costs (electricity for offices, etc) as well as its clients.
The other controversial industries flagged in the analysis were that of M&C Saatchi’s exposure to alcohol.
Interestingly unlike other industries which tend to contribute to one SDG more so than any others, the companies analysed touched on several of the SDGs; SDG Goal 3: Good health and well-being, SDG Goal 16: Peace & Justice Strong Institutions and SDG Goal 17: Partnerships for the Goals. To a lesser extent the group contributed to Goals 5: Gender Equality, 9: Industry innovation and Infrastructure and 10: Reduced inequalities.
*All SDG score and data are provided by Sustainable Platform based on data as at 2 July 2020.
Top contributing goals
Of all the 17 SDGs, the advertising agencies analysed contribute most to these below goals:
SDG 3: Good Health & Well-being
SDG 5: Gender Equality
SDG 9: Industry, Innovation and Infrastructure
SDG 10: Reduced inequalities
SDG 16: Peace, Justice and Strong Institutions
SDG 17: Partnerships for the Goals
Find out more about the Sustainable Development Goals (SDGs).
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