Four agencies under the French advertising conglomerate Havas have lost their B Corp certification, which signifies high standards in social, environmental, and corporate governance, due to their association with Shell, according to the certification body.
This decision highlights the increasing reputational risks for advertising and PR firms that present themselves as climate advocates while also working for oil and gas companies.
“Havas London, Havas Lemz, Havas New York, and Havas Immerse are no longer Certified B Corps,” stated B Lab UK. “Other entities in the Havas group are also ineligible to certify.”
Despite the four agencies having no direct relationship with Shell, B Lab UK determined that decisions made at the group level were pertinent to their B Corp status because Havas operates under a unified brand.
B Lab UK found that Havas’ actions violated the core values of the B Corp community as outlined in its Declaration of Interdependence, and noted that Havas had refused to take unspecified remedial actions necessary to maintain its certification.
Havas accepted the decision, stating, “Our level of commitment towards sustainability remains unchanged. We are proud to support our clients in their transformation for the future and remain focused on progressing towards the highest levels of social and environmental performance, with more to come in the coming months and years.”
The revocation of B Corp status is a setback for Havas CEO Yannick Bolloré, who had previously defended the company’s decision to take on a major advertising contract with Shell, arguing that Havas could leverage its position to influence Shell towards greater sustainability. In an October interview with Campaign, Bolloré said, “As long as we are making things better, B Corp agrees that we can partner with [controversial] industries.”
Bolloré had also positioned Havas as a climate leader, expressing concern over the climate crisis and suggesting that a global communications group like Havas could positively influence environmental behaviour.
Last month, UN Secretary-General Antonio Guterres called for a ban on fossil fuel advertising and warned creative agencies that working for the industry could be “toxic for your brand.”
In October, 22 other B Corp-certified PR agencies demanded that Havas London, Havas Lemz, Havas New York, and Havas Immerse lose their B Corp status, arguing that working for fossil fuel companies conflicted with B Lab’s values. Duncan Meisel, executive director of Clean Creatives, praised B Lab’s decision, stating, “Creative agencies should not be working for the companies destroying the planet. I want to thank B Labs for doing the right thing and revoking certification for agencies that promote fossil fuel polluters.”
Chris Norman, CEO and Founder of GOOD Agency, a highly accredited B Corp advertising agency, criticised the delay in B Lab’s decision but hoped it would set a precedent. “There should never have been any doubt that an agency helping promote and support a fossil fuel company should retain its B Corp accreditation,” Norman said.
Earlier this month, Clean Creatives submitted another complaint to B Lab after identifying five more B Corp-accredited communications agencies that had worked with fossil fuel clients in the past three years.
There was no immediate indication of any potential commercial impact on Havas from the ruling. When Shell’s selection of Havas was revealed in mid-September, the Fossil Fuel Non-Proliferation Treaty Initiative immediately cancelled its communications contract with Havas Red, a U.S. subsidiary. It remains unclear if any clients of the four former Havas B Corp agencies will follow suit.
B Corp status is also highly sought after by agencies aiming to attract climate-conscious creative talent, which is crucial for the advertising industry.
FAQs
- How will the loss of B Corp status affect Havas’ business and client relationships?
The loss of B Corp status could potentially impact Havas in several ways. Firstly, it may damage Havas’ reputation as a socially responsible company, which could affect its appeal to clients who prioritise working with environmentally conscious partners. Some clients, especially those with strong environmental commitments, might reconsider their relationship with Havas. The article mentions that one organisation already cancelled its contract with a Havas subsidiary. Additionally, B Corp status is attractive to many job seekers, particularly younger generations. Losing this certification could make it more challenging for Havas to recruit top talent. Furthermore, other agencies with B Corp status might gain a competitive edge in pitching to clients who value this certification. However, the article doesn’t indicate any immediate large-scale commercial impact, suggesting that the effects might be more long-term or subtle.
- Will other advertising agencies working with fossil fuel companies face similar scrutiny and potential loss of B Corp certification?
It’s likely that other agencies working with fossil fuel companies will face increased scrutiny. The decision regarding Havas sets a precedent that B Lab is willing to revoke certification based on client relationships. The article mentions that Clean Creatives has already submitted complaints about five other B Corp-certified agencies working with fossil fuel clients. There’s growing pressure on creative agencies to distance themselves from fossil fuel clients, as evidenced by the UN Secretary-General’s call to ban fossil fuel advertising. Additionally, other B Corps are actively pushing for stricter standards, as seen by the group of 22 agencies that called for Havas to lose its certification. This suggests a trend towards increased scrutiny and potential consequences for agencies working with fossil fuel companies.
- What specific actions or changes would Havas need to make to regain B Corp status in the future?
Havas might need to end its relationship with Shell and potentially other fossil fuel clients. They would need to implement stricter policies about working with companies that have significant environmental impacts and demonstrate a stronger commitment to environmental sustainability in their operations and client work. Additionally, Havas would need to take the “unspecified remedial action” that B Lab UK mentioned Havas declined to take. Aligning more closely with the B Corp community’s core values as expressed in its Declaration of Interdependence would also be necessary. Havas might potentially need to wait for a certain period before reapplying, as B Lab might have rules about how soon a company can seek recertification after losing it. Ultimately, Havas would likely need to show substantial changes in its practices and client portfolio to convince B Lab that it truly aligns with B Corp values.
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