Clean Creatives: Fossil fuel work could cost agencies more than it pays

Fossil fuel giants are still pouring serious money into marketing with an estimated US$7 billion a year across media, creative advertising and PR. According to Clean Creatives' latest whitepaper "Profitable growth without fossil fuels", this spend from the top 29 oil and gas majors makes up nearly 0.7% of global marketing budgets. 

PR alone accounted for US$2.7 billion annually from 2021 to 2023, with media close behind at US$2.09 billion. Creative advertising, on the other hand, only accounted for roughly US$630 million each year in the same period.

The money may still be flowing but so are the risks. For agencies, holding onto fossil fuel clients is becoming an increasingly costly gamble in terms of reputation, revenue, talent retention and future relevance. Despite the current spend, the bigger opportunity now lies in the clean economy.

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By 2050, healthcare costs linked to the climate crisis are expected to hit US$1.1 trillion, averaging US$55 billion annually until then. Meanwhile, global clean energy investment topped US$2 trillion in 2024. This is more than double that of fossil fuels. The circular economy, focused on reuse and recycling, is forecasted to hit US$712 billion by 2026 and balloon to US$4.5 trillion by 2030, said the report. 

Agencies under pressure

Big agencies such as FTI Consulting and Edelman have already taken heavy hits over their fossil fuel work. FTI was investigated by the US congress for creating front groups and running astroturf campaigns opposing climate action. The fallout saw FTI lose clients and attract investor scrutiny, even as it posted record revenues in 2024.

Edelman also took a reputational hit, losing major accounts including Nike and We Mean Business, while facing internal dissent and public backlash. Its flagship "Trust Barometer" report was said to have lost credibility amid mounting criticism. In 2024, the agency saw a 5% drop in revenue and lost its spot as the top PR firm in the US too.

Marketers are also tightening procurement rules. More brands are excluding agencies that work with fossil fuels. This is a move likened to CVS Health’s historic ban on tobacco-linked agencies. Meanwhile, sustainability certifications such as B Corp and the Science Based Targets initiative are now penalising firms that retain fossil clients, cutting off access to ESG-linked capital.

According to Clean Creatives, agencies now face three choices. They can double down on fossil fuel clients, all while carrying growing reputational risks, cultural clashes with a younger workforce, and exposure to an industry with a shrinking future. Some might attempt to greenwash by focusing only on fossil fuel clients’ clean energy projects as legal and regulatory scrutiny against greenwashing increases worldwide. Finally, agencies can aim to phase out fossil fuel clients by 2030 and pivot towards clean economy sectors to build long-term resilience.

Where growth lies

The whitepaper lays out a phased exit plan from 2025 to 2030, starting with internal alignment and reducing fossil fuel reliance, followed by public commitments and brand repositioning.

Among the biggest growth opportunities is renewable energy. Solar and wind power are now more than 50% cheaper per kilowatt than fossil fuels, and investment in clean power surpassed US$2 trillion last year. The sector needs strategic communications and storytelling to help reshape public perception and accelerate policy change, making it a natural fit for marketing agencies.

Healthcare is another sector on the rise. As climate-driven diseases surge, there is growing demand for vaccines, diagnostics, telehealth, mental health support and climate-resilient infrastructure. Healthcare marketing is projected to grow from US$22.8 billion in 2024 to US$36.4 billion by 2030.

Meanwhile, the circular economy - from secondhand marketplaces to reuse and repair brands - presents a US$4.5 trillion opportunity by the end of the decade. Facebook Marketplace alone has nearly 500 million users engaging with pre-loved products, underscoring consumer appetite for more sustainable options.

The message is clear: Climate change is a communications challenge. Agencies still aligned with fossil fuel clients face deepening scrutiny, reputational blowback and talent attrition. Sustainability-minded clients are watching, and so are regulators.

Agencies that move first will be best placed to win the next decade. They’ll gain credibility, attract top talent and tap into clean-economy sectors growing faster than any fossil fuel portfolio. With the fossil fuel marketing becoming a sunset industry, the future belongs to agencies ready to lead the next transition and profit from it.

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