AGL Energy is dealing with an increasing amount of difficulty in its attempts to find an advertising agency willing to collaborate with them, as their refusal to take action on matters such as climate change appear to be finally catching up with them.
AGL are a company who have a reputation on their high usage of coal, which is the biggest contributor of total greenhouse emissions by the electricity sector.
Their advertising contracts with CHE Proximity and UM, which were initially signed back in 2018, are set to expire this year and are up for renewal.
However, AGL has repeatedly neglected to point out if, and when, they’ll be reducing their carbon emissions towards the environment, which has left them in a non-enviable position as agencies are now showing their hesitation to associate with a company that could damage their own reputation.
Comms Declare founder Belinda Noble encouraged all agencies to keep their distance from the energy provider:
“Any agency that pitches for AGL will surely lose staff, credibility and longer term business,” said Noble.
“Our industry report found agencies that work with large fossil fuel corporations risk reputational damage, risk losing staff and open themselves up to potential future legal action.
“AGL is Australia’s largest greenhouse gas polluter by far, and yet it continues to portray itself in marketing materials as being sustainable and progressive.
“An agency that helps AGL greenwash its reputation is delaying the immediate and drastic emission cuts needed to save the Great Barrier Reef, our biodiversity, our wellbeing and our health.”
A representative of AGL attempted to put out the fire by pointing out that this was all part of their “regular business process.”
As if that wasn’t enough, tech billionaire Mike Cannon-Brookes has stated that the company is also dealing with the frustration by shareholders and investors, with AGL’s proposition of splitting the energy provider into two separate divisions, one for retail and one for coal-generated energy, becoming increasingly difficult.
The vote on the proposed demerger is set to take place in June.
