UPDATE:

We will present the engagement initiative at a webinar organised by the FIR - Forum pour l'Investissement Responsable on Thursday, 6 April, 12-12.45 (CEST), and are happy to welcome Jonathan Wise of Purpose Disruptors, who developed the concept of 'advertised emissions', as a guest speaker.

Presentation will be in English. You can use this link to register: https://us06web.zoom.us/webinar/register/WN_9DjnSzGVTDqRFk-4ZljrLQ#/registration

For further details or direct registration please reach out to Marie Marchais ([email protected]) and Justine Apollin ([email protected]).

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Together with our partner Ecofi, Inyova has initiated an engagement dialogue with Publicis Groupe on the risks and opportunities related to providing PR and advertising for fossil fuel clients. We would like to kindly invite fellow investors of Publicis Groupe to join the engagement or to start engaging on this issue on their behalf. Depending on the response by Publicis Groupe, we might consider taking further joint action including filing written questions or a shareholder resolution at their upcoming AGM in May 2023.

In addition, we would like to encourage shareholders of the other three largest, publicly-listed PR and advertising companies, namely, WPP, Omnicom and IPG to start engaging on that issue as well.

Why?

In 2022, the IPCC and the UN Secretary-General affirmed a study that found that PR firms working on behalf of fossil fuel companies are a key organisational actor in climate politics. Agencies from the Big Four PR and advertising companies – namely, WPP, Omnicom, Publicis Group and IPG, provide services to fossil fuel clients that mainly focus on portraying their transition. However, according to various experts, this transition is not happening in a Paris-aligned way - exposing the shareholders of the Big Four to material risks.

As the fossil free movement grows, pressure on those providing services to coal, oil and gas companies increases:

1. Business is at risk: NGOs are calling for a ban on fossil fuel advertising, which has already been implemented by some legislators.
2. Legal risk is increasing: climate litigation has emerged as a new tool to hold carbon polluters liable and might target involved third-parties, too.
3. Damage to brand reputation will hamper talent acquisition and retention: the PR and advertising industry is highly competitive and creative talent is the most valuable resource. To attract younger generations that expect work to be aligned with their values, employers must show they take climate action seriously.

So far, all of the Big Four claim to be committed to fighting climate change but fail to include advertised emissions into their strategies. While some of the risks are mentioned, disclosure on actual exposure in terms of revenue share and names of fossil fuel clients is limited and thus, insufficient to assess these risks as a shareholder.

Please find more detailed information, sources, and guidance on stewardship activities in the Investor Briefing attached.