Profitable Growth Without Fossil Fuels
Strategic Planning Recommendations for a Pathway Forward to a Fossil Fuel Free Future for the Marketing Industry
The planet is changing.
The economy is changing.
It’s time for the marketing industry to change, too.
This report presents a roadmap for agencies in the marketing industry to reduce reliance on fossil fuel revenue and begin the process of gradually off-ramping fossil fuel clients, replacing these contracts with viable alternatives while ensuring profitability and minimizing disruption to the workforce.
It’s important to understand the size, scale and dynamics of the financial relationship between marketing agencies—specifically public relations, creative and media agencies—and their fossil fuel clients.
This report proposes a model to approximate an overall spend of $7.1 billion by fossil fuel companies on public relations, creative and media. This represents less than 1% of global marketing spend across all industries.
The exact figures for each fossil fuel client’s spend and each agency’s revenue from them are closely held company secrets. Consequently, financial modeling in this report is informed by public financial disclosures, industry knowledge and best practice, many off-the-record conversations and expertise from an extensive shared network.
The damage to agencies from associating with fossil fuel clients spans recruitment and retention, conflicts of interest and a wide variety of other domains. The revenue provided by fossil fuel clients can and must be replaced, and several growing sectors offer outsized opportunities. In rewriting the narrative of the marketing industry, working in these sectors and with these clients will help pave a new and better way forward for holding companies and the industry at large.
The ambition of this report is to help future-proof industry revenue and shift the conversation about transitioning fossil fuel clients from risk to opportunity.
Change is possible, starting today.
Every difficult industry transition begins from a place where change seems impossible, and ends with that change looking inevitable in hindsight. We are currently walking that pathway when it comes to fossil fuels and marketing, and those that walk it faster will be seen as leaders in a profound historical transformation.
While top oil majors spend billions on media, creative and public relations annually, generating significant revenue for holding companies, the growing reputational risks associated with retaining fossil fuel clients, such as negative publicity, loss of certifications and talent acquisition challenges demonstrate the imperative for change.
Fossil fuel companies are facing a limited growth horizon compared to the rapid expansion of alternative energies like solar and wind, as well as the growing electric vehicle market. Continuing to work with fossil fuel clients is financially risky, potentially impacting long-term stability and profitability.
We believe there is a strategic framework for agencies to achieve a fossil fuel free future. A phased transition, backed by specific steps such as foundational shifts, strategic pilots, portfolio pivots, public break-ups and brand repositioning can generate strong future growth for clean agencies.