Advertising industry environmental group Clean Creatives is calling on shareholders of both Interpublic Group and Omnicom to demand greater transparency over fossil fuel cleints, ahead of the proposed merger of the two ad giants.
In an open letter from executive creative director Dan Meisel, the group warns of the “significant business and reputational risks” tied to work with fossil fuel clients, claiming that, combined, they will hold at least 124 contracts from the likes of ExxonMobil (9 contracts), Shell and TotalEnergies (4 each), and Chevron, Repsol, Saudi Aramco, and Suncor (3 each).
The letter states: “Addressing these risks is essential to safeguarding the long-term value and stability of the combined company. We encourage you to raise these concerns with IPG and Omnicom leadership and ask for action to mitigate these risks in their proposed new company.
“The merger would create the world’s largest advertising agency. However, it also consolidates exposure to substantial risks related to fossil fuel clients. These risks range from reputational damage to legal liability and shifting market dynamics and require urgent action by shareholders and leadership in order to create a strong company for the future.”
The missive goes to detail how rivals WPP, Havas, and Dentsu have been far more transparent.
It added: “Given these industry precedents, Omnicom and IPG must adopt similar transparency and mitigation strategies ahead of the vote to protect shareholder value. Failure to do so could jeopardize ESG ratings and deter institutional investors.”
Clean Creatives claims that these reputation risks are only the beginning, and legal exposure is also growing, citing the fact that over 80 lawsuits over fossil fuel companies’ misleading communications have been filed globally and the pace of legal action is accelerating.
The letter concludes: “Given these financial, legal, and reputational risks, we urge shareholders to push for a rigorous examination of fossil fuel client exposure as part of the upcoming merger process.
“Reducing reliance on these clients will strengthen the combined company’s long-term resilience and align its business strategy with evolving market trends.
“We believe a fossil-free Omnicom-IPG would further accentuate the company’s strengths while mitigating potential weaknesses. We appreciate your attention to these critical matters and encourage a thorough evaluation of these risks ahead of the upcoming vote.”
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