Nikita Mishra
Jul 18, 2024

Havas loses B Corp status over controversial Shell deal

After sustained pressure from environmental groups, B Lab has revoked Havas' B Corp certification, citing violations of core values due to the agency's association with Shell.

Havas loses B Corp status over controversial Shell deal

In a major setback for Havas, the global advertising and communications giant has been stripped of its B Corp certification following an investigation by B Lab, the nonprofit organisation responsible for B Corp certification. This landmark decision comes after sustained pressure and a formal complaint by Clean Creatives and a coalition of 26 B Corp agencies, condemning Havas' association with oil and gas giant Shell. 

The controversy erupted after 
Havas secured the multimillion-dollar Shell media account in September 2023, sparking backlash from environmentalists and prompting Clean Creatives to submit a formal complaint to B Laba decision which Havas CEO Yannick Bolloré previously defended on the grounds that Havas could use its insider position to influence the company to become more sustainable.

In an interview with Campaign, Bolloré had said: “As long as we are making things better, B Corp agrees that we can partner with [controversial] industries.”

B Lab has stated that even though Havas' four agencies that are B Corp certified had no direct relationship with Shell, the agency's association with Shell violated the community’s core values as stated in their Declaration of Interdependence. 

"While the Certified B Corps are not directly involved in providing services to the client, Havas’ structure and use of a common brand name across some of its agencies means that the entire group is ultimately required to earn certification, per B Lab rules; this places the group’s actions in scope for this investigation.

B Lab’s investigation was based on current standards and complaints processes, with evolving standards to include rigorous due diligence for human rights and environmental impact.

Havas, on its part said it is accepting the ruling.

It emphasised its ongoing commitment to sustainability, highlighting its recent accolades such as the Gold Medal by EcoVadis and the validation of its decarbonisation efforts by the Science-Based Targets Initiative.

"Havas has cooperated in good faith throughout B Lab’s investigation, while simultaneously preserving the integrity of confidential client information. Whilst the investigation recognizes that our certified agencies do not have a relationship with Shell, we accept the ruling and they will cease to be B Corp certified."

Havas also pointed to its deployment of the Havas Carbon Impact Calculator and dedication to eco-designed solutions as evidence of its commitment to sustainability.

Clean Creatives celebrated the decision as a major victory.

Duncan Meisel, executive director of Clean Creatives, praised B Lab for taking a strong stance against greenwashing. “Creative agencies should not be working for companies destroying the planet. I thank B Lab for doing the right thing and revoking certification for agencies that promote fossil fuel polluters.”

Chris Norman, founder and CEO of Good Agency, echoed these sentiments, stating, “There should never have been any doubt that an agency promoting a fossil fuel company should retain its B Corp accreditation. Whilst the delay has been damaging to B Lab’s reputation, we are pleased that there is now a precedent establishing this principle.”

The revocation of Havas’ B Corp status sets a precedent for future cases. B Lab has announced that it is evolving its standards to include more rigorous due diligence for human rights and environmental impact. As B Lab finalises these new standards, the analysis of complaints against B Corps working with controversial industries remains crucial, underscoring the growing scrutiny on corporate practices and the demand for genuine commitment to sustainability and ethical standards.

The decision highlights the reputational risks facing advertising and PR firms that portray themselves as climate champions while advancing the interests of oil and gas companies.

Just last week, Clean Creatives accused five other B Corp accredited communications agencies—Cullen Communications, Edit, SEC Newgate, Tinkle Communications (a Havas subsidiary), and Total Media—that have worked with fossil fuel clients in the last three years. While three of these agencies contested the findings, citing transparency and past disclosures, Clean Creatives submitted a letter to B Lab. 

Source:
Campaign Asia

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