Signing a sponsorship contract with a major CO2 emitter: What are the risks?

Several recently revealed sponsorship agreements by major international federations or Anglo-Saxon sporting organizations have made headlines due to the heavy advertiser carbon footprint associated with the deal. Feedback that forces rights holders to question themselves more about the nature of their business partners’ activities in relation to climate issues. In an interview with Ecofoot.fr, I am Thomas Barnard And Ted Powell From the British law firm Erwin Mitchell LLPpresenting their analyzes of the evolution of relationships between companies from historically polluted sectors, sports properties, and professional athletes/athletes.

Given the climate context, is it still possible for a beneficiary to sign a sponsorship agreement with a hydrocarbon giant or a company that is one of the largest emitters of CO2?

Yes, rights holders can – and continue to sign sponsorship contracts with companies in the hydrocarbons sector. However, this can generate a negative resonance due to the reputational problems associated with these companies.

The recent agreement between British Cycling (note: British Cycling) and Shell is a good example to illustrate this phenomenon. As we already mentioned in a previous articleThe agreement between British Bicycle and Shell was concluded last October and covers a period of 8 years, he explains Reputational issues that rights holders may face By entering into partnership with oil companies. This agreement led to the resignation of British Cycling’s CEO. Another example is the recently signed agreement between the International Criminal Court (editor’s note: International Cricket Council) and the oil company Saudi Aramco, which has also caused controversy.

In France, some professional clubs are still involved in commercial agreements with major players in the oil and gas sector, such as the Paloise division, of which TotalEnergies is among the main sponsors. However, the two partners are jointly developing several environmental projects, such as eco-friendly T-shirts made from recycled plastic, for example. Is this a good way to pursue a historic business partnership, including with a major CO2 emitter? Do you have other examples in European sport in mind?

Signing a sponsorship contract with a major CO2 emitter: What are the risks?