Amid Pipeline Controversy, Edelman Splits With Standard Bank

Edelman will end its three-year relationship with South Africa's Standard Bank Group, the public relations giant confirmed to Adweek. The breakup comes amid a longstanding controversy surrounding Standard Bank's investment in the East African Crude Oil Pipeline (EACOP), a joint venture between TotalEnergies, the China National Offshore Oil Company (CNOOC) and the Tanzania Petroleum Development Corporation. Standard Bank was an early funder of EACOP. The financial services company paused its involvement last spring under pressure from activists and pending an environmental assessment of the project, according to local news reports. Several major banks have pulled their investments from EACOP due to environmental concerns and social opposition. Among the most prominent names to withdraw include JPMorgan Chase, Citi Bank, Wells Fargo and Deutsche Bank, according to activist group Stop EACOP. Your Brand’s Sustainability Story Can Build Trust Still, Standard Bank's involvement is in limbo. It has not yet publicly confirmed whether it will continue funding the project. But the bank hasn't committed to pulling out, either. Standard Bank did not respond to Adweek's request for comment. Environmental and climate activists have opposed the 900-mile project, which would transport crude oil from Uganda to Tanzania's port of Tanga. Stop EACOP, a coalition of 260 organizations opposed to the pipeline, warns of "severe impacts on people, climate and wildlife" if the project is completed. Edelman reportedly refused to provide Standard Bank with any public relations or reputation management services surrounding the pipeline, according to local news coverage. https://twitter.com/stopEACOP/status/1557618415245852672?s=20&t=bqwiBYDsh3_b8mYcOfj05Q A spokesperson for Edelman told Adweek via email that "Edelman and Standard Bank Group partnered closely for three years and mutually agreed not to renew our partnership beyond December 2022." The spokesperson declined to share any additional information or answer Adweek's questions regarding Standard Bank's investment in EACOP, citing confidentiality commitments to its clients. Edelman has faced pressure from climate activists in recent years over its work with fossil fuel clients due to the outsized impact that oil and gas production is having on the greenhouse gas emissions fueling climate change. Last year, following a campaign by Clean Creatives that highlighted Edelman's work with ExxonMobil, the PR firm pledged to review its client roster and develop new climate-related standards. But after a 60-day review, Edelman announced that it wouldn't actually be cutting ties with any of its fossil fuel clients. As of January, the PR firm's roster included oil and gas giants like Shell and Chevron in addition to ExxonMobil, and oil industry trade groups like the American Fuel and Petrochemical Manufacturers. Still, CEO Richard Edelman told Adweek at the time that his firm would "part company" with any clients that were not "accelerating action" on climate. It is getting harder and harder to greenwash such controversial projects.Omar Elmawi, coordinator, Stop EACOP In April, Edelman published a blog post saying it had incorporated climate principles into its client acceptance process, but the firm hasn't detailed what that means for its client roster. "We have decided not to pursue certain new opportunities, and established ongoing follow-up and review of some assignments," the April announcement read. It added that the agency was unable to share specifics due to confidentiality agreements with clients. When asked whether it is still working with ExxonMobil, Shell, Chevron and the American Fuel and Petrochemical Manufacturers, an Edelman spokesperson declined to comment on specific clients. Activists have welcomed the news of Edelman's split with Standard Bank amid the EACOP controversy. "It is a testament to the fact that this EACOP pipeline and the associated oil fields are bad news for all involved except Total and CNOOC, who are hell-bent on ripping these profits at the expense of everyone else," Omar Elmawi, coordinator for the Stop EACOP campaign, told Adweek. "Even PR firms are cutting ties with financial institutions big on fossil fuel financing, which is a sign that it is getting harder and harder to greenwash such controversial projects." The move also raises questions about where Edelman is drawing the line on clients, according to Clean Creatives director Duncan Meisel. "If Edelman thinks that working on this pipeline is too much of a risk—or too dirty—so is working for every other fossil fuel company on the planet," Meisel told Adweek. "Edelman needs to apply whatever standard they're using to evaluate this project to every single one of their clients and recognize that Shell, or Exxon, or the American Fuel and Petrochemical Manufacturers are just as dangerous as EACOP." Sustainability Pledges Without Accountability Hurt All Brands

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Amid Oil Pipeline Controversy, Edelman Breaks With South Africa's Standard Bank Group

The PR giant refused to offer reputation management services surrounding the project, according to local news reports

Kathryn Lundstrom

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Kathryn Lundstrom