Agencies in firing line as OECD is urged to probe WPP

Advertising and marketing agencies are facing a major challenge to their environmental record amid claims that one of the sector’s biggest groups, WPP, has breached global climate and human rights guidelines by promoting companies linked to pollution.

The move follows what is claimed to be a “world first”, with lawyers and environmental groups urging the Organisation for Economic Co-operation & Development (OECD) to investigate WPP over work for what it claims are “climate-wrecking” clients.

The move, which could have far reaching consequences for the entire sector, has been widely criticised by UK marketing industry bodies.

Submitted by the New Weather Institute and Adfree Cities, the complaint alleges that WPP and its subsidiary agencies – including Oglivy and VML – worked on 79 contracts for the fossil fuel industry in the 2023-24 financial year, more than any of its competitors. Its clients have included Saudi Aramco, ExxonMobil, Chevron, Shell and BP.

It also claims that WPP’s work for other clients including British Airways, Ford, Toyota, HSBC, JPMorgan Chase and Coca-Cola “directly increases demand for carbon-intensive products and undermines global efforts to reduce greenhouse gas emissions”, and is in breach of the OECD’s international guidelines for corporate responsibility.

The complainants argue that as agencies have not yet faced litigation on climate grounds, unlike many of their carbon-intensive clients, this challenge against WPP marks a significant increase in legal risk for the entire sector.

Adfree Cities co-director Dr Veronica Wignall said: “It’s been said that advertisers are the architects of desire. I look around and see ads everywhere for SUVs, plastic polluter giants and long distance flights, in between newsreels of climate disasters and nature loss.

“It is now both morally unforgivable and increasingly a legal risk to do promotional work for toxic brands like Shell and Coke. WPP is currently working against the greener, fairer future the world urgently needs. We’re calling on WPP to live up to its climate pledges and stop promoting polluters.”

According to WPP’s own Annual Report 2023, the company’s policy “is not to take on any client work, including lobbying, designed to frustrate the objectives of the Paris Agreement”.

However, New Weather Institute co-director Andrew Simms pointed out: “WPP, it appears, wants to have its green reputation and be able to eat it. But you cannot make climate pledges and still promote the world’s most polluting companies.

“Advertisers may be skilled at creating alternative realities, but in believing it can do both WPP appears to have has fallen for its own stock-in trade illusioneering, breaking its own rules and multinational guidelines.”

The complainants argue that WPP has breached the human rights, climate and environmental duties detailed under the OECD Guidelines. The OECD Guidelines are not legally binding on companies, but they are binding on signatory governments.

The complaint calls on WPP to disclose the full environmental impact of its work, including its advertised emissions. It also recommends that the organisation enhances its due diligence processes to phase out work which could undermine internationally recognised climate standards.

Should the OECD decide to take on the investigation, it will be the first of its kind in history, and could set a new precedent.

Perhaps unsurprisingly WPP has defended its record. A spokesperson said: “Contrary to the claims being made, we adhere to the highest regulatory standards in our work for clients. If the UK and other countries want stronger economic growth and the benefits this brings to society, companies need to be able to market their goods and services, within a clear framework of rules and codes of practice.

“Along with our clients and the rest of the advertising industry, we take great care to comply with all marketing regulation, and we are proud to act as a catalyst for growth across every sector of the economy.”

UK industry bodes have also waded in.

A spokesperson for the Advertising Association said: “It is important to remember that advertising plays a fundamental role in supporting businesses to generate jobs, compete, innovate, and invest in products and services that will serve the economy, now and in the future.

“All advertising in the UK must comply with strict content rules enforced by the ASA and the regulations on environmental claims must also comply with the CMA’s green claims code. On very rare occasions advertisers fall foul of these rules and the ads are amended or withdrawn. Leading advertising businesses are working hard to decarbonise their supply chains and WPP has set an ambitious net zero target of 2030. Advertisers will have varying commitments and latest data from SBTi shows rapid increases from businesses around the world setting emissions targets in line with the Paris goals.”

Meanwhile, an IPA spokesperson added: “This challenge against WPP seems to us to not only be without foundation but also misguided. The regulations governing what can be said in this area are understandably strict, unintentional infractions can happen, notwithstanding this, virtually all advertising undertaken by WPP on behalf of the clients cited in the complaint, to our knowledge, complies with the ASA and the other regulations pertaining to environmental claims.

“Furthermore, we would draw attention to the wider actions taken by WPP, as one of the World’s leading Communications networks, to be amongst the leaders of their peer group in working towards a net zero target for their own business. It is well established how hard many of the world’s biggest companies are working to produce more sustainable products and services. Their ability to continue to advertise their brands plays a vital role in encouraging consumers to change their purchasing habits towards greener choices.”

An ISBA spokesperson concluded: “If we want an economy and environment fit for the 21st century, then sectors from energy to FMCG need to be able to invest in change. In part, that investment comes from their continued operation, while they research, develop and switch to the products and services which will underpin a more sustainable future.”