Several PR agencies under multinational communications and advertising giant Havas have lost their B Corp certification after an investigation by the ethical business body determined their work with oil and gas giant Shell violated core B Corp values. B Lab, which oversees B Corp accreditation, announced the decision following an investigation into a complaint from Clean Creatives, a campaign group demanding PR and advertising firms ditch fossil fuel clients.
Havas, headquartered in France and one of the largest global communications companies, has accepted the ruling but insists that its “level of commitment towards sustainability remains unchanged”.
The initial complaint was supported by 27 B Corp-certified communications and advertising agencies, which argued that working with fossil fuel companies amounts to a breach of the criteria that govern B Corp status.
The investigation by B Lab focused on four Havas agencies—Havas London, Havas Lemz, Havas New York, and Havas Immerse—that had previously held B Corp status. These agencies were stripped of their certification, while other Havas brands globally are barred from obtaining certification until they complete unspecified remediation actions. In a statement, B Lab said the investigation concluded that Havas’ actions violated the B Corp Community’s core values related to environmental, social, governance, and transparency issues.
“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,” the statement said.
While the organisation did not specify which B Corp rules and standards had been breached, it said that the investigation was “based on our current standards and complaints procedures” and that Havas had cooperated throughout.
“Simultaneously, B Lab is actively evolving our standards to include rigorous due diligence requirements for human rights and environmental impact that will require companies to assess the impact of each client or project and take action to mitigate negative impacts,” it added. “As we work to finalise and implement these new standards, complaints about B Corps that work with clients in controversial industries require a case-by-case analysis.”
Following this, Havas said in a statement that it had “cooperated in good faith throughout B Lab’s investigation, while simultaneously preserving the integrity of confidential client information”.
The statement said, “Whilst the investigation recognises that our certified agencies do not have a relationship with Shell, we accept the ruling and they will cease to be B Corp certified.”
The firm also listed its various green achievements and commitments, including its adoption of decarbonisation goals validated by the Science Based Targets initiative and its 2050 net zero pledge, adding that “our level of commitment towards sustainability remains unchanged”.
PR, marketing, and advertising agencies have faced growing scrutiny for their associations with fossil fuel companies, presenting a challenge for those that derive a substantial portion of their revenue from oil and gas clients. Some agencies argue that by working with carbon-intensive clients, they can assist these companies in transitioning to cleaner technologies and business models. However, critics contend that representing fossil fuel firms facilitates greenwashing and supports polluting practices that contradict net zero objectives.