In a significant case of greenwashing at a global level, four communications agencies were recently stripped of their B-Corp status due to a collaboration with Shell that went against the organisation’s business sustainability standards. The agencies, Havas London, Havas New York, Havas Immerse, and Havas Lemz, were offered the chance to take remedial action and maintain their B-Corp Certification but declined to do so.
What caused this investigation?
The global nonprofit network, B Lab, was asked to investigate the agencies after receiving several complaints following the parent company Havas pursuing a new contract for Shell last year. Havas was ultimately successful in this endeavour and began to explore a global PR contract to further the partnership’s collaborative work.
Over twenty other B-Corp-certified PR agencies have been requesting that the four Havas agencies be removed from the community for some time. Their argument is that continued certification of the four Havas agencies undermines trust in the B-Corp certification scheme and, more broadly, the industry’s ESG claims.
This claim had been coordinated by Clean Creatives, and the company is now asking B Lab to investigate five further accredited communications agencies’ work with fossil fuel clients over the past three years. B Lab is also in the process of raising its certification and recertification requirements.
Havas and B Lab’s response to the situation
B Lab has said that Havas’ actions “constitute a breach of the B Corp community’s core values.” It made a statement elaborating on this: “While the Certified B Corps are not directly involved in providing services to the client, Havas’ structure and use of common brand name across some of its agencies means that the entire group is ultimately required to earn certification, per B Lab rules.”
According to the B Lab rules, other entities in the Havas group are now also ineligible to become B-Corp certified. A Havas spokesperson has also commented to say that the business accepts the ruling and has cooperated throughout B Lab’s investigation. They talked up the business’s other sustainability practices and added that the company remains focused on progressing towards the highest levels of environmental and social performance.
The company was also issued a ‘Gold Medal’ by Ecovadis and is aiming to achieve carbon-neutral operations by 2025. Havas UK and Ireland have a 2050 net-zero target, which covers the whole value chain, with interim emissions objectives submitted to the Science-Based Targets Initiative (SBTi).
Final thoughts
This situation highlights yet another instance of greenwashing, where companies publicly tout their sustainability credentials while engaging in practices that contradict those claims. The decision by Havas to collaborate with a fossil fuel giant like Shell while maintaining B-Corp certification undermined trust in both the certification and the broader industry’s ESG claims.
However, B Lab’s swift and decisive action to revoke Havas’ B-Corp status is commendable, as it reinforces the importance of genuine accountability in the sustainability space. Through their response, B Lab has sent a strong message to all companies that integrity and transparency must be upheld if they are to remain part of the B-Corp community. Learn how to avoid the pitfalls of greenwashing and confidently communicate sustainability with a fully online, self-paced Green Marketing and Communication certificate course.
