IPG’s Climate Action Plan Sets an Emissions Reduction Target

Interpublic Group (IPG) is implementing what it calls an "ambitious climate action plan" to battle climate change. Philippe Krakowsky, chief executive officer at IPG, said in a statement that this shift towards sustainable transformation is imperative for the company to advance its ESG goals. “The steps we are taking today represent a significant move forward in terms of assessing and reducing our carbon footprint," Krakowsky said. "We have been thoughtful about these commitments and understand that to successfully address climate change, we have to look at behavioral changes we can implement to minimize our contribution to the problem.” Krakowsky added that the plan will include travel policies, energy-efficient buildings and responsible consumption while at work, whether that’s home-based or in-office. The holding company is pledging to set an emissions reduction target in line with limiting the global temperature rise to 1.5 degrees Celsius through the Science Based Targets initiative (SBTi), the best-practice framework for validating emissions reduction targets. In its commitment, IPG becomes a signatory to the SBTi’s Business Ambition for 1.5°C and a member of the United Nations-backed Race to Zero campaign. The goal is to lower its emissions and source 100% renewable electricity by 2030 across its entire portfolio. Inside Belvedere Vodka’s Commitment to Sustainability: It Plans to Cut CO2 Emissions by 80% In addition to these new climate goals, IPG also published its first SASB Report, becoming the first company globally to publish one in alignment with SASB’s Advertising & Marketing Sustainability Accounting Standard, according to an IPG statement. The SASB report has been published in conjunction with IPG’s 2020 GRI Report (Global Reporting Initiative), tracking its sustainability reporting. IPG has also signed on to The Climate Pledge, co-founded by Amazon and Global Optimism (a commitment to reaching net-zero carbon across our business by 2040). Michael Roth, executive chairman at IPG, said in a statement that the company has a responsibility to contribute to a healthier society and planet. “It’s also gratifying to be able to report recent progress on a number of fronts in our ESG efforts using the standards set out by SASB, as these issues grow in importance to all our stakeholders, including investors,” he added. Tracking progress Many companies have plans to become more sustainable, and many consumers are demanding it, but some businesses don’t have the ability to pull off ambitious goals. IPG told Adweek it has a strategy in place to not only oversee its plans across its agency portfolio, but to track its progress as well. “Nearly every agency in IPG’s portfolio is working on ESG issues at some level, and certainly on environmental sustainability," Jemma Gould, vp of sustainability and communications for IPG, told Adweek. "IPG has formed a management steering committee that oversees ESG, along with our CFO, Ellen Johnson, the executive sponsor of ESG at our company.” She added that each IPG agency will work within its own culture to ensure that office practices are implemented into IPG policies. IPG also has an ESG working group, comprised of individuals from its agencies who have been charged with responsibility for ESG by their CEO, that meets regularly to help keep company goals on track. The commitment to sustainability extends beyond its internal culture to IPG clients as well, according to Gould, who noted that most IPG clients and suppliers are working their own sustainability commitments and programs, and some are committed to Science Based Targets. Gould acknowledged the direct impact IPG agencies have had with clients, including McCann’s recent Super Bowl work with GM, which tackled climate change and the skepticism around it. IPG will be working with an independent third-party company to ensure its work on climate issues are tracked, especially on emissions. Gould added that the holding company is "absolutely committed from the highest levels of the organization" via "executive sponsorship and active involvement" to grassroots efforts that "ensure that our work continues," highlighting its new employee group dubbed Sustainability Allies. Havas Group recently announced its steps to become more environmentally sustainable over the next four years as it aims to lower its greenhouse gas (GHG) emissions by 60%. This Ratings Tool Lets Investors See Companies' Sustainability Score