Climate Action
A critically important part of our ESG program is our commitment to take action for a healthy climate. We see an opportunity to accelerate our transition to a lower-carbon future. The entire IPG network is working together to achieve an ambitious climate action plan, with a goal to reach net-zero carbon across our global operations by 2040.
IPG's Climate Commitments
Net-Zero Emissions
IPG is a signatory of The Climate Pledge, joining over 450 global companies and organizations who have committed to reach net-zero carbon emissions by 2040.
Science-Based Targets
To guide our achievement of this goal, we set science-based targets to reach by 2030: a 50% reduction of Scope 1 and Scope 2 emissions (2019 baseline); and a 30% reduction of Scope 3 emissions (2019 baseline).
The Science Based Targets initiative (SBTi) has validated these near-term targets in alignment with a 1.5 degree Celsius warming trajectory.
Renewable Electricity
IPG has committed to sourcing 100% renewable electricity across our entire portfolio by 2030. By the end of 2023, IPG sourced 30% renewable electricity.
IPG is committed to tracking performance against our climate targets and reporting on progress annually to our stakeholders.
Our Partnerships
IPG is proud to support our many clients who are making progress in reducing their own emissions, while also working with NGOs and trade bodies to drive public consensus around the urgency of achieving a sustainable world. Our client and industry initiatives include:
Ad Net Zero
This is an Advertising Association initiative to reduce the carbon impact of developing, producing and running advertising to net zero by 2030.
AdGreen
This Advertising Association initiative, of which IPG is a founding member, provides tools to help advertisers mitigate the environmental impacts of production to advance a zero-waste and zero-carbon future.
America is All In
This is the most expansive coalition of leaders ever assembled in support of climate action in the U.S.
American Association of Advertising Agencies
The 4As works with the industry to advance social and civic goals and facilitates pro bono efforts on the part of its members to support important causes. IPG’s Chief Sustainability Officer is a member of the 4As’ Sustainability Task Force, established to help agencies develop solutions for climate action.
Business Ambition for 1.5°C
This campaign is led by SBTi in partnership with the UN Global Compact and the We Mean Business Coalition.
Green The Bid
This is an industry initiative aimed at shifting commercial advertising productions to zero-waste, carbon-neutral and other sustainable and regenerative practices.
IPA Media Climate Charter
This initiative provides media agencies with resources to transition to a zero-carbon future, including a carbon calculator that calculates carbon emissions associated with media plans.
isla.
Jack Morton is a founding member of this initiative, which aims to accelerate the event industry’s transition to a more sustainable future.
Race to Zero
This United Nations-backed multistakeholder campaign is the world’s largest alliance for achieving net-zero carbon emissions by 2050.
Science Based Target initiative (SBTi)
IPG’s science-based emissions reduction targets have been validated by SBTi as aligned with a 1.5°C future.
The Climate Pledge
A growing list of over 450 companies and organizations have become signatories to The Pledge – committing to net-zero operations by 2040 – co-founded by Amazon and Global Optimism.
Climate-Related Risks & Opportunities
At IPG, climate-related issues are integrated into multi-disciplinary company-wide risk management processes, including monitoring and overseeing progress against related goals and targets.
Our physical risks of climate change include the increasing likelihood of extreme weather events and rising sea levels, while our transitional risks related to climate change could include shifting market preferences and evolving legal conditions. Our identified opportunities related to climate change include those pertaining to the benefits of resource efficiency, and the shift in consumer and market preferences.
Oversight of Climate Strategy
IPG’s Board of Directors, including our CEO and our Chairman, has overall responsibility for oversight of the company’s risk management related to climate change. Climate-related issues are considered in the Board’s review and guidance of risk management policy, review of annual budgets and oversight of progress against commitments for addressing climate change.
The Board is kept informed on climate change through several direct avenues, such as reports from the Board’s Audit Committee, its Corporate Governance & Social Responsibility Committee, our CFO, our Chief Sustainability Officer and our Treasurer.
Programs & Initiatives
- Has the potential client set specific emission reduction goals that are aligned with the 1.5°C ambition to achieve net-zero carbon by 2050 or sooner with no greater than 10% off-setting?
- Is the company publishing clear climate reporting, including scope, baseline, timeline, and the tracking of Scopes 1, 2 and 3 emissions?
- Are the potential client’s goals in line with the goals IPG has made in our own ecosystem, and are their goals reported on publicly?
- Has the company ceased any controversial form of oil and gas production?
As a client services business, IPG recognizes that travel and in-person collaboration often play a role in relationship-building and creativity. We seek to strike a balance between that need and the urgency of slowing global warming by promoting the use of appropriate alternatives to in-person meetings requiring travel and supporting employees to make lower-carbon choices when travel is necessary.
IPG’s climate strategy includes a 30% reduction of our Scope 3 emissions by 2030 (2019 baseline). In connection with this target, IPG launched our inaugural supplier engagement program in 2022, allowing us to increase our understanding of this component of our emissions, and ultimately work to lower its contributions.
In 2022, IPG introduced climate-related criteria into the consideration process when entering into and renewing office leases. IPG’s gross global emissions have already decreased due to energy efficiency programs and the implementation of sustainable standards in the management of our real estate portfolio. These initiatives, which have also reduced operating costs, include:
- Minimum standards for new office spaces
- Green spaces
- Energy conservation
We have reduced our office space by 2.8 million square feet globally as of year-end 2022, representing an approximate 28% cut of our occupied spaces since 2020.
IPG implements energy-efficiency programs and sustainable standards in managing our real estate portfolio and our IT operations, such as data centers. These initiatives have both decreased our global emissions and reduced operating costs. In 2022, IPG IT accelerated its move to the cloud with providers that are focused on a reduced carbon footprint.
Tracking & Reporting
In line with our commitment to transparency and accountability, IPG regularly monitors our global energy and emissions data for 100%* of our operations. We publicly report on this data on a regular basis through our annual ESG report and CDP Climate Change responses, both of which can be found on our website.
Scope 1 & Scope 2 Emissions
Details on our methodology and approach to Scope 1 and Scope 2 emission calculations are contained in the 2023 ESG Report.
Scope 2 data here represents market-based emissions.
Scope 3 Emissions
Scope 3 Emissions
IPG performs our Scope 3 inventory including these relevant Scope 3 categories: (1) Purchased Goods and Services, (2) Capital Goods, (3) Fuel- and Energy-related Activities, (4) Upstream Transportation and Distribution, (5) Waste Generated in Operations, (6) Business Travel and (7) Employee Commuting.
External Assurance
PricewaterhouseCoopers LLP (PwC) performed a limited assurance engagement on certain GHG emissions metrics for the year ended or as of December 31, 2022.