Two specialist marketing communications agencies–Cone and OgilvyEarth–lead the U.S. market for sustainability communications agencies, according to a new report from analyst firm Verdantix.
The four-month study comparing 18 U.S. agencies finds that there is a yawning gap between the rapidly evolving needs of Fortune 500 firms to communicate sustainability performance to business and consumer audiences and the lacklustre ideas, strategies and frameworks offered by most of the agencies in the study.
“Rising interest in sustainability performance with employees, investors and customers has forced corporate sustainability marketing out of the "Green Ghetto" of CSR reports targeted exclusively at environmental NGOs and socially responsible investors” commented Jim Nail, the Principal Analyst at Verdantix who authored the report. “The shift from old style, tactical CSR reporting to the new wave of strategic, sustainability communications has caught agencies off guard. PR firms such as APCO Worldwide, Edelman and Hill & Knowlton have the skill set to help clients avoid greenwash but, according to our detailed analysis, only Cone and OgilvyEarth offer breakthrough sustainability communications strategies, frameworks and advice in tune with the needs of leading firms.”
The Verdantix report, "Green Quadrant Sustainable Communications US 2010," compares 18 US agencies offering sustainability communications advice on 41 criteria. Assessment criteria include sustainability communications frameworks, defining the sustainability-brand connection and communicating to employees, customers, investors and suppliers.
The study found that Cone and OgilvyEarth lead the sustainability communications market due to a clear sustainability vision supported by processes and methodologies specifically designed to address sustainability communications challenges. They go beyond promoting current initiatives and create brand platforms that are catalysts for change.
According to the report, investment could propel four agencies ahead in 2011. Cohn & Wolfe, Context America, Edelman and Ketchum follow close behind the leaders. These agencies demonstrate a strong sustainable business perspective and investment in their sustainability practice. The Green Quadrant scores for these four agencies’ capabilities are significantly below Cone and OgilvyEarth in a variety of different criteria. Edelman scores lower on the sustainability readiness assessment and in communicating sustainability to investors. Ketchum has lower scores in communicating sustainability to employees and in defining the sustainability-brand connection.
All agencies flunk the test on their own sustainable business strategy
Across the board, the study found that the agencies failed to impress with their own sustainability strategies, commitments, reporting and communications plans. To earn trust from potential clients, agencies must demonstrate they can "walk the walk" as well as "talk the talk" on sustainability by implementing innovative, transparent and authentic sustainability communications strategies that connect with their brands.
The Verdantix analysis exposes the current weaknesses in the ability of well-known PR and marketing agencies to provide meaningful advice and insight on sustainability. Sustainability leaders new to the world of corporate marketing, and marketing leaders new to the world of sustainability, must apply rigorous selection criteria when hiring an agency. Selecting an agency based on their brand presence or global scale will not be successful–proven sustainability expertise is essential.
“In this nascent market, even leading agencies need to broaden their capabilities to deliver the strategic sustainability advice that corporate clients require” commented David Metcalfe, Director of Verdantix. “Firms face risks and opportunities created by sustainability performance rankings, SEC climate change risk disclosure guidelines, water scarcity issues, scrutiny of conflict minerals in the supply chain and ill-defined eco-consumer trends. Agencies urgently need to respond with deeper domain expertise and engagement from senior communications advisers that reflects the need to delve into the long-term impact of sustainability trends on brand equity.”
Loading...