Agentsof

Theexpertview

Industryperspectivesonthepathtosustainableadvertising

2

Contents

Foreword3

Anotefromtheauthors4

Executivesummary5

Aholisticviewofsustainability7

Theworldweworkin9

Thebigpicture10

Thedesiretodomore11

Theproblemwith‘businessasusual’12

Theneedtorecogniserisk14

Clientrelationships18

Failuretotellthefullstory19

Theneedforcohesion20

Directionoftravel–lookingtothefuture21

Elephantsintheroom22

TheroleoftheIPA24

Theplan:summaryofthetoolkit25

Abouttheauthors29

Acknowledgements30

PleasebeawarethattheinclusionoflinksandreferencestoanyexternalguidesandtoolsinthisdocumentanditsaccompanyingtoolkitdoesnotimplythattheIPAendorsesthem.Wearesimplylistingresourcesthatyourpeersintheindustryareusingandhavethemselvesfounduseful.Someofthesetoolsareco–producedwithinputfromtheIPA,butmanyarenot.Everyorganisationshouldevaluatethetoolsandguidesreferencedinthisguideontheirownmeritsanddecideiftheyarerightforthem.

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Foreword

Advertisingexertsapowerfulinfluenceonsocietyandtheeconomy,touchingalmosteveryfacetofourlives.Asanindustry,ourabilitytoshapebehaviourandinfluence

culturecannotbeunderestimated.

I’vebeenprivilegedtoworkintheagency

worldformorethan20yearsandinthattimeIhaveseenoursectorbegintoacknowledgeitsroleinanescalatingplanetarycrisis,andtorecogniseitsuniquepotentialtotacklea

perfectstormofclimatechange,resource

depletion,lossofnature,andsocialinequalityandinjustice.

Agrowingcallforchangefrominsidethe

industryhasseenthebirthofnew,industry-widemovementsandinitiatives,fromAdNetZeroandvibrantcoalitionsofpractitioners

focusedonlearningandconsciouscreativity,toorganisationslikePurposeDisruptors

raisingchallengingquestionsaboutourfutureroleinsociety.

TheIPAproudlypromotesbest-practice

standardsinadvertising,mediaandmarketingcommunications.ThisiswhyourSustainabilityActionGroupwasformedby15industry

leaderswhoarepassionateaboutgalvanisingtheindustrytoembracesustainabilityasa

keycomponentoftheirbusinessstrategyanddrivebehaviourchange.

WesetouttocreateAgentsofChangeas

asustainabilitybest-practiceprojectandablueprintforactionforagencieswhowanttosupportthetransitiontoamoreequitableworldbutfeeltheyareheldbackbyalackofknowledgeandexpertise.Thepurpose

ofthisreport,andtheaccompanyingtoolkit,istohelpthemkickstartoracceleratetheirjourneyontheroadtosustainablebusiness.

Toachievethis,weworkedwithindependentconsultantstolearnfrommediaandcreativeagenciesofallsizes,acrosstheUK,along

withclients,professionalmembership

organisations,andactivistsandmovements

forchange.Ouraimwastounderstandsectorchallengesandopportunitiesfromabusinessperspective,shinealightonthebestwork

underwayinagencies,andgatherandsharepracticaladviceonhowwecanalltakeaction.

Wearegratefultothemanypeoplewhohavegenerouslycontributedtheirthinkingand

experience,sharedherewithIPAmembersasapromptfordiscussionandabest-practice

resource,whichissomethingwewilliterateandbuildon.

Ourindustryishometosomeoftheworld’s

brightest,mostcreativemindsandwenowhavetheabilityandtheopportunityofalifetimeto

drivepositivechangeforfuturegenerations.

Let’sdothattogether.

TomFirth

Chair,IPASustainabilityActionGroup.

UKGroupManagingDirector,M&CSaatchiLondon

4

Anotefromtheauthors

WhentheIPAcommissionedustospeaktoitsmembersandotherstakeholdersontheissueofsustainablebusiness,wewereunpreparedforthesheerscaleofpassionandenthusiasm,andthebreadthoftheconversationsthat

weretofollow.

Ourbriefwastounderstandhowcreative

andmediaagenciesareapproaching

environmentalstewardship,inorderto

gatherandsharebestpractice.However,

manyoftheconversationsalsohighlightedtheequalimportanceofsocialandfinancialsustainability–somethingwehave

endeavouredtoreflecthere.

Thisreportandtheresultingtoolkitare

basedon30hoursofinterviewswithagencyleadersandsustainabilityspecialists,clients,coalitionsworkingforchangewithinthe

industry,externalactivists,andotherrelatedmembershipbodies.Theirthinkinghasbeencollatedintobroadthemestodescribewhattheytoldusabouttheirexperienceandtheirhopesforthefuture.

ThepracticaladviceprovidedinThePlan–

thetoolkitaccompanyingthisreport–comesfromprofessionalswithintheindustryandisaimedprimarilyatthoseagenciesthatareatthestartoratanearlystageoftheirjourney

towardssustainablepractice.Thatsaid,the

principlesitsetsoutareintendedtobeusefultoallleaders,formalorinformal,inbusinessesofallsizes.

Itisimportanttosaythattheseinsightsmay

notrepresenttheviewsoftheadvertising

industryasawhole.Aswellasconsulting

smalleragencies,wesetouttospeakto

peopleinsideandoutsidethesectorwhoarechampionsformoresustainablebusiness,anditisalloftheirviewsthatarereflectedhere.

WeandtheIPAteamaregratefultoeveryonewhogaveuptheirtimetosharetheir

perspectives,experienceandresourcestobringtheprojecttolife.

HilBerg

ManagingDirector

RickBenfield

StrategyConsultant

OnePlanetCommunications

5

Executivesummary

AgentsofChange–theexpertviewistheresultofqualitativeinterviewswith

28advertisingindustryspecialistsand

stakeholdersanddefinestheenvironment

thatindustryprofessionalsfindthemselvesin.Itrecognisesthatadvertisinghasapowerfulinfluenceonhowpeoplethinkandbehave,

andthesignificantpartitcanplayindesigningabetterworld.Agencyleadersunderstand

thepastrolethatadvertisinghasplayedin

bothpositiveandcounternarrativesbuthaveastrongdesireforagenciesofalltypesandsizestobeempoweredtohelpthetransitiontoamoresustainableeconomy.

Italsoprovidesanopportunitytoreflectthe

viewsoftheleaderswespoketo,theirviewsonthebarrierstochange,andonthepressingissuestheybelieveshouldbetackledthroughamorecohesive,openandcollaborative

industry-wideapproachtosustainability.

Accompanyingthisreportisapractical

toolkit,Agentsofchange–theplan,which

hasbeendesignedtocapturebestpracticefromtheindustry.Itbringstogetheradvice

fromacrosstheindustryinafour-stepmodelforaction,presentedasapracticalresourceforagencies.

Whatpeopletoldus

Thepeoplewespoketodescribearapidly

changingpoliticalandeconomiclandscapeinwhichtheindustryisunderthespotlightforitsactions,fromclients,activists,policymakersandregulators,investors,employees,and

informedconsumers.Brandsinsectorslike

finance,energy,andautomotive,areactivelyengagedinradicaltransformation,andtheseadvertisersareseentobeleadingthechargetowardsnetzerocomparedtoagencies.This

representsbothariskandalostopportunityintermsofbuildingandmaintaininghigh-

valuepartnerships.

Ourexpertshighlightfivemajorbarriers

tochange.Theseincludethechallengeof

buildingastrategicapproachtosustainabilitywithinconventionalbusinessmodels,and

significantdifferencesbetweenagency

leadersinthewaytheyperceivethebusinessrisksthatcomefromafailuretoact.

Theydescribeadisappointinglylowlevelof

demandfromadvertisersforagencyexpertiseinsustainability.However,fast-moving

regulatorychangeandthegrowingimpactoftheclimateemergency,nowseentobeatatippingpoint,meanthatagenciesmustbepreparedforclientneedstochangefast.

Someoftheleaderswespoketoseethe

benefitsofexpandingtheindustry’snarrativeoncarbonreductionintoawider,moreholisticsustainabilitystorythatincludeseconomic

andsocialvalue.Manyarecallingforamorecohesiveindustryapproachtothetopic,withgreaterspaceforcollaborationandopen

debateonsomeofthemorechallengingissuesitbrings.

Againstthisbackground,legislationand

regulationareseenasthestrongestlevers

forchange.However,somealreadyfeelthesearemovingatadisconcertingspeed,that

agencieswhichlacktherelevantskillsandknowledgewillfinditdifficulttoreactto.

Theneedtoretainandattracttalentisattheheartoftheissue.Sustainablebusinessesareseenasapotentialmagnet,notjustforthe

brightestandbestofthenextgeneration,but

“Lookbackatwhathascreateddramaticsocialchange,fundamentallyshiftedhowwelive.Neverhasitbeenabankeroraneconomistthatcreatedthatshift.Ithas

alwaysbeenthecreativeindustry.Themavericks.Thepeoplewhocanpictureandselladifferentwayofliving.Weneedthemtocreateavisionofthefuture.Onethatissoexciting,sooptimistic,sobrilliantthatwecan’tbloodywaittogetthere.”

SianSutherland,Founder,APlasticPlanet

alsoforseniorcolleagueswithestablishedcareerswhowanttousetheirskillstodrivepositivechange.

Theoverwhelmingconclusionfromthis

projectisthattheadvertisingindustrymust

workproactivelyifitistoovercomethemajorbarrierstochangeanduseitsimmense

ingenuityandimaginationtoimpacttraditionalbusinesspracticeandrespondtoconsumer

lifestyles,withthepotentialtobeempoweredbythemainstreamingofsustainableproductsandservices.

Strategicandcreativeleadershipcanworkat

alllevels–fromaninspiringclientconversationinthesmallestagency,totransformingthe

impactofaglobalbrand–butitwillrequire

informedleadershipandcollaborativeactiontocaptureanddirectthepassionandskilloftheindustrytoredefineitsrole.

Thebenefitsforagenciesarethosewhichwillensuretheirlong-termsurvivalandsuccess:businessresilience;reputation;enhanced

clientrelationships;andtheabilitytoattractandretainthebesttalent.

Thecontentsofthetoolkit

Thetoolkithasbeenproducedasaseparatedigitalresourceandissummarisedvery

brieflywithinthisreport.Ithasbeendesignedasapracticalsupporttoovercomebarriersforagenciesandbringstogetherbestpractice

fromtheindustryinafour-stepmodel.

Itrecognisesthatagenciescurrentlyfallwithinthreegroups,accordingtotheirapproachto

sustainablebusiness:

1.Passives–takingnopositiveactionoutsidelegalcompliance

2.Participants–makingincrementalchangestoreducetheirnegativeimpact

3.Pioneers–settingouttoembedasustainablemindsetandcreateanetpositiveapproach

“Wecanshiftdesires.Wecanshift

culture.Wecanenablethedemand-sidedriverstochangethebehavioursneededtomeetnetzero,asaneconomyandasasociety.Therolethattheadvertising

industrycanplayincreatingpositivetippingpointsisenormous.”

FelicityMcLean,AssociateDirectorSustainability,WPP

Themodelrecommendsthatagencyleadersshouldbehonestaboutwheretheywantto

taketheirbusiness,inordertoprovideanorthstarwhensettingtargetsandtakingaction.

Eventhosethatarehappytotakeapassive

stancewillneedtonegotiatecurrentandfuturelegislationandregulation(andthereisalotonthehorizon,bothforagenciesandtheirclients).

Itthenexplainshowtobuildthefoundationsforchange,includingunderstandingcontextandrisk,establishingabusinesscase,leadingtheagenda,andengagingcolleagues.

Itencouragestakingactionintwoways.

Optimisingagencyimpactthroughtheworkyoudo,whichinvolvesmakingclearchoicesonclientsandbriefsand,atthesametime,assessinghowyouwork,toimprovethe

efficiencyandreducethecarbonfootprintofoperations,productionanddelivery.

Tohelptrackprogressasanagency,andanindustry,tentoplineKPIsareproposed.

Finally,itfocusesonhelpingtogrowa

movementforchange,throughinspirationandcollaboration.

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Aholisticviewofsustainability

Whatissustainability?

Manypeoplewhentheyheartheword

‘sustainability’immediatelyleapto

environmentalissuesand,moreoftenthan

not,toclimatechangeandtermslike‘carbonfootprint’and‘netzero.’

Whilecarbonreductionisacriticalissue

fortheadvertisingindustry,andrightlyhas

beenthefocusofsignificantattention,there

isnowagrowingmovementforsustainable

advertisingthatembracesthevalueof

widerenvironmentalstewardshiptomanageresourcesandprotectbiodiversity,andtreatspeoplewellthroughoutthewholevaluechain.

Achievingnetzerois,andremains,atop

priorityforalloperatorsintheglobal

economy,buttheadvertisingagencies

leadingtheagendarecognisethat

sustainabilityismuchbroaderthanjust

netzero,broaderthanjustenvironmental

issues.Sustainabilityencompassessocial

sustainability,environmentalsustainabilityandeconomic(financial)sustainability.Awhole

guidecouldbedevotedtothisdefinitionbut,inshort,theybelievethatagenciescanthinkofthemselvesasbeing:

1.SociallySustainable:isthehealthand

wellbeingofthepeopleinourbusinesses,supplychainandthecommunitieswe

serveinbalance(andwhatimpactarewehavingtoimprovethem)?

2.EnvironmentallySustainable:arethe

planetarysystemsinbalance(andwhatimpactarewehavingonthem)?

3.FinanciallySustainable:areourbusinessmodelsresilientandfitforthefuture?

Sustainability–social,environmentaland

financial–shouldbethestartingpriorityforanybusiness,aswithoutthebalanceofallthree,

thenthereisnobusinessinthelongterm.

Althoughthisprojectcentresprimarilyon

environmentalsustainability,manyofthe

peoplewespokewithreferencedthismoreholisticview,astheyfinditisusefulwhendesigningagencystrategiesandnarrativesaroundsustainablebusiness,especially

intermsofbuildingaffinityandclosecollaborationwithadvertisers.

Asanillustration,thismodelemergedfrom

theBruntlandReportin1987,asawayto

meettheneedsofthepresentwithout

compromisingtheabilityoffuturegenerationstomeettheirownneeds.Itemphasises

abalancebetweeneconomicgrowth,

environmentalprotection,andsocialequity,

highlightingtheinterconnectednessofthesedimensionstoensurelong-termsustainability.

Ithasprofoundlyinfluencedframeworks

liketheUNSustainableDevelopment

Goalsandbecomeafoundationalprinciple

inpolicymaking,andinthedesignof

organisationalsustainablebusinessstrategiesworldwide.

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Figure1:Dimensionsofsustainabledevelopment

Environmental

LivableViable

Sustainable

SocialEconomic

Equitable

Source:afterBruntland,19871

1Brundtland,GH(1987)OurCommonFuture:ReportoftheWorldCommissiononEnvironmentandDevelopment,Geneva,UN

world

weworkin

The

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Thebigpicture

Theinterviewsbroughttogetherarange

ofdifferentperspectives,whichpaintedan

overallpictureoftheapproachesbeingtakenbyagencies,andtheenvironmenttheyfindthemselvesoperatingwithin.

Whilethereisasignificantdesiretodomorefromthepeoplewespoketo,theytoldusthatfivebarriersareholdingbackchangewithin

theindustry.

Figure2:Percievedbarrierstochange

Nooneis tellingthewholestory

Thesector

isnot

cohesive

Desireto

domore

Businessasusualtakesprecedence

Agencies

underestimaterisk

Clientsarenot

demanding

change

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Thedesiretodomore

Alloftheadvertisingprofessionalswespoketoshareastrongpassionfortheindustryandafundamentalbeliefinitsabilitytoinfluenceanddrivepositivechangeinsociety.Many

peopleconsiderthispotentialtobeuntappedandarekeentotackletheissuestheybelievearebarrierstoaction,viewingcultureand

leadershipaskeyfactorsforsuccess.

ComparisonsweremadewiththefilmandTVindustry,whichisseenasachievinggreater

progressinmakingthesustainabilityagendamuchmoremainstream,intermsofcontentaswellasoperations.

“Wesetouttointegratebusiness

strategyandsustainabilitystrategy.Oursustainabilityplansarecreatedbya

cross-functionemployeeresourcegroupbuthugelyinspiredbyourCEOandshespearheadstheagendainawaythat

hascreatedseismicchangeoverthelastfewyears.”

GraceReith,SustainabilityCommunicationsDirector,BrayLeino

Theindustryisdiverse.Whileagencies

ofalltypesandsizesareconcernedwith

sustainability,thereareinevitabledifferencesintheapproachestakentosustainablebusinessbetweenindependentagencies,whichmaybepurpose-drivenandhavegreatercontroloverdecision-making,andthosewhicharepartoflargergroups.Atthesametime,whilesome

groupshaveastrongsharedculture,othersseememberbusinessesasculturallydistinctwithsignificantautonomy.Asaresult,theydescribequitedifferentpicturesofthestrategies,

processesandtargetssetbytheirowners.

“Ifwewanttogetpeopletochange

behaviour,youknow,wearethe

communicatorsandthestorytellerswhocanmakethathappen.Soweshouldbethinkingabouthowwecanstartusingoursuperpowersforgood.”

PaulineRobson,ManagingPartner,EssenceMediacomUK

Culturaldrivers,includingsharedpurpose,haveasignificanteffectonhowagenciesperceive,

leadandmanagesustainability.Theseare

fundamentallyconnectedtothestrengthand

styleofleadership,withboard-levelownershipoftheagendaseenascritical.Suchdriverscanpresentaparticularchallengeforglobalgroups,wherecultureisintimatelyconnectedwith

theirhistoricalrootsandconsequentgrowth

strategy,andwhereleadersnotonlyhaveto

managecountry-levellegislationandregulationonsustainability,butalsodifferingpolitical

landscapesandculturalnorms.

“It’saboutcitizenshipandsocial

responsibility.There’sadifferentcentreofgravityhere.Weworktotheprinciplesofsanpoyoshi,theJapanesephilosophyofpursuingtripleoutcomesthataregoodforbusiness,people,andsociety.”

JessicaTamsedge,CEO,DentsuCreative

TheBCorpagenciesthatwereinterviewedconsidertheirimpactunderfivepillars:

governance,workers,community,environmentandcustomers.Assuchtheytakeanactive

approach,althoughthesocialcredentialsfromsomebusinessesintheBCorpcommunity

wereseentooutweighenvironmental,withthepotentialforfurtheraction.

“Theworldneedscreativeleadersmorethanever.Ibelieveinthepoweroflateral

thinkingappliedtoadvertising,andweneedtoredefineourrole,aswehaveahugeparttoplay.Thebestcreativesarestrategic–andourinfluenceneedstobewieldedwithresponsibility.”

TimWhirledge,StrategyPartner,DentsuCreativeUK

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Theproblemwith‘businessasusual,

“Creativeshavethepotentialtoinfluenceasaforceforgoodbecausetheyare

reallybrilliantproblem-solvers.Clientsarefacingchallenges‘Howdowekeep

ourbusinessthriving?’,‘Howdowedothingsdifferently?’,‘Howdowecreategood

growth?,Thereareenormouscreativeopportunities.Theagenciesthatdon,tseethatandjustpursuebusinessasusualaremissingoutonasignificantopportunity.”

MichelleCarvill,Co-Founder,CanMarketingSavethePlanet?

Theconceptof‘businessasusual’isseen

asoneoftheprimarybarrierstosustainablepractice,drivenbyarelianceontraditionalbusinessmodelsandalackofregulation.

TheWorldEconomicForumreporteda

triplinginthenumberofbusinessleaders

understandingthebusinesscasefor

sustainability2from2022to2023.Meanwhile

publiclylistedagenciesandgroupsareseentobeundershareholderpressuretodriveshort-termsalesandprofit,makingithardertotacklethelonger-termrisksandopportunitiesthatareimplicitinmoresustainablebusinesspractice,soinhibitinginvestmentandstiflinginnovation.3

ManypeopleillustratedthispointusingthelevelofindustryattentionandinvestmentgiventoAI,comparedwithsustainability,asapracticalexampleofshort-termthinking,especiallyinthecontextoflearning,

knowledgeandinnovation.

“Attheheartofthisistheabsolutetruthofmoneyintheshorttermfighting

long-termenvironmentalbenefits.Ourresearchshows6outof10marketers

struggletoachievetheirsustainabilitycommitmentswithoutcompromisingoncommercialneeds.”

JamesSutton,StrategyandCommercialDirector,CIM

Someindustryinsidersbelievethisrepresentsamisalignmentofincentivesandisa

generationalissuewhichwillchangewithtime.Theydescribeboard-leveldecisionsbeingtakenbyolderindustryprofessionals,whohavebuilttheircareersonclient

affiliationswithhard-to-transitionindustries;

atthesametimetheybenefitpersonallyindrivingshort-termprofit.Similarly,theuseatalllevelsofperformancebonusessolelyattachedtoincomeandprofitarebelievedtoslowprogressandsomeagencieshavereaddressedthisbylinkingsustainability

factorswithpersonalfinancialincentives.

Themovefromretainedtoproject-basedagency-clientrelationshipsisalsoseenasachallenge,sinceitishardertoprovide

strategiccounselwithinmoretransactionalrelationships,andbriefsaredifficult

tochallengeonceissuedaspartofacompetitiveprocess.

Someagencies,notablyindependent

purpose-ledbusinesses,describedtheuseofsectorexclusionlistsasacorepartofnewbusinessplans.Anumberofcoalitionsand

networksprovideacollaborative,supportedapproachtorefusingtoworkforfossilfuel

clientsinparticular.Mostofthepeople

wespoketo,includingthelargegroups,

describedhavingformalprocessestodecidewhethertopitchforcontentiousclients–

althoughthesearedistincttoindividual

businesses,arecommerciallysensitive,andnotalwayseffective.

Generally,thereisastrongbeliefthatifa

productorserviceislegal,thensupportingit

bydeliveringresponsibleadvertisingisentirelyacceptable,especiallywhentheeconomy

isdifficultandthereisequalappetiteforthe

businessfromcompetitors.Thepointwasmadethatindustry-widepledgesandbest-practice

processes(suchastheIPAPitchPositive

Pledge)areusefulbutalwaysdependentoneveryonefollowingtherulesandcouldbeunderminedeasilybyarogueagency.

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"Agenciesmakechoicesaboutwhotheywillworkwithallthetime.Theyalwayshave.Choosingnottoworkwithfossil

fuelpollutersisawaytomakesureyoubuildtrustfortherightpeople,notthewrongpeople.”

DuncanMeisel,ExecutiveDirector,CleanCreatives

Someintervieweesthinkthattheanswerto

thedilemmaofwhetherorhowtoworkwithfossilfuelcompaniesandotherhigh-pollutingindustriesliesingreaterregulation(akintothehistoricbanontobaccoadvertising),which

wouldcreatealevelplayingfieldforagencies.

Meanwhileindustryactivistspredictagrowingconflictofinterestbetweentransitioning

brandsandtraditionalhighpolluters,whichwillitselfshiftthemarketastheformerseekout

agencieswithasharedsustainabilityagenda.

Thereisastrongandconsistentviewfrom

sustainabilityactivistsandchampionswithintheindustrythatthefirstlargegroupto

announcealong-termplantodivestitshigh-carbonclientswillhaveaforevercompetitiveadvantage.

Suchdilemmasleadintowiderconversationsabouttheroleoftheadvertisingindustryin

generatingeconomicgrowth.Whileoutside

theremitofthisproject,itisanimportanttopic

“Thereisafundamentaldisconnectinwhatboardsaresayingtoshareholdersaboutgrowth,profitabilityand

maintainingdividends,andwhat

sustainabilityexpertsaresayingto

them.Aconflictbetweenshort-term

quarterlybusinessresultsandmarket-basedcapitalism,andthelong-termplanningneeded,nottogetoutofthismessbutjusttomitigateit.”

JakeDubbins,ManagingDirector,MediaBounty&Co-Founder,ConsciousAdvertisingNetwork(CAN)

fortheindustry,whichwerefertolaterinthereportinthesectionon‘Directionoftravel.’

Finally,thepotentialformuchgreaterindustrycollaborationemergedasamajortheme,

ontwolevels.Thefirstisforagencyleaders

toaccessnew,sharedspacetodiscussthe

structuralissuesthatareblockingprogress

andfindmutualsolutions.Secondly,forlargergroupswhohaveinvestedinsustainability

resourcestobeabletoproactivelysharetheirlearningsandexpertisewithsmalleragencies.

2“Why2024istheyearsustainabilitydevelopsacredible

businesscase”,Jan26,2024,WorldEconomicForum

3AWorldinBalance2023:Heightenedsustainability

awarenessyetlaggingactions,Capgemini

14

Thene