I have witnessed firsthand the evolving landscape of our industry. One of the most significant shifts in recent years is the growing emphasis on environmental, social and governance (ESG) criteria. These principles are not just buzzwords; they represent a profound shift in how we do business, and their impact on OOH advertising is undeniable.
In Saudi Arabia, this shift is particularly important as the country advances its Vision 2030, a bold initiative aimed at reducing carbon emissions and promoting sustainable development across all sectors. For organisations, aligning with this vision is not just a responsibility but an opportunity to take meaningful action toward these ambitious sustainability goals.
Understanding sustainability and ESG in OOH advertising
ESG encompasses three critical areas:
1. Environmental: This relates to a company’s impact on the planet. For OOH advertising, it includes using eco-friendly materials, energy-efficient lighting, and reducing waste through recycling. With climate change posing significant challenges, environmentally conscious practices have become essential.
2. Social: This examines how companies interact with their employees, suppliers and the communities they serve. In OOH advertising, it means promoting diversity and inclusion, supporting local economies and ensuring advertising respects cultural values.
3. Governance: This focuses on transparency, accountability and ethical business practices. Strong governance builds trust with stakeholders and ensures that companies make responsible, well-informed decisions.
The case for ESG in outdoor advertising
Integrating ESG principles into OOH advertising is no longer optional; it’s essential. Consumers today are increasingly mindful of the social and environmental impacts of the brands they support. Studies show that many are willing to pay more for products from companies that prioritise sustainability and social responsibility. This presents a unique opportunity for OOH advertisers to differentiate themselves by aligning
with ESG values.
Brands embracing ESG can stand out in a crowded market, attracting ethically driven consumers. Conversely, those that ignore these principles risk alienating a growing demographic of socially conscious consumers. Companies with strong ESG performance often outperform competitors financially, making the business case for ESG clear.
Innovating for sustainability in advertising
OOH advertising is evolving to meet the demand for sustainability. From solar-powered billboards to biodegradable posters, new technologies are shaping the future. Digital advertising, especially programmatic, allows for more targeted campaigns, reducing waste and improving efficiency.
In Saudi Arabia, the push for sustainability is even stronger, as Vision 2030 emphasises reducing the nation’s dependence on oil and promoting green practices across sectors. This drive to achieve net-zero carbon emissions by 2050 means the OOH industry must continue evolving to stay relevant.
Community engagement and responsibility
The social aspect of ESG is vital to OOH advertising, as our industry operates within and affects local communities. By building strong ties with community organisations, supporting local artists and promoting social causes, we create more relevant and meaningful campaigns. Prioritising these efforts ensures our advertising reflects the diversity of the populations we serve, fostering an inclusive ecosystem that benefits both brands and communities.
Using our platforms to highlight eco-friendly practices, health initiatives and social engagement drives awareness and inspires positive change. These campaigns align with broader sustainability goals, contributing to a cultural shift toward responsible, community-focused living.
Transparency and accountability
Governance, the third pillar of ESG, is essential for building trust. Transparency in campaign execution and ESG reporting is critical. Consumers and investors increasingly demand accountability in sustainability efforts. By committing to regular reporting and ethical practices, OOH advertisers can build long-term credibility with stakeholders.
The path forward
As we navigate this dynamic landscape, it is crucial for the OOH advertising industry to remain agile and responsive to the evolving expectations surrounding ESG. By embedding these principles into our core strategies, we can lead the charge toward a more sustainable and socially responsible advertising ecosystem.
In conclusion, integrating ESG principles into OOH advertising isn’t just about compliance or reputation – it’s about reshaping the industry for the better. As we move forward, let us embrace this opportunity to create a more sustainable, inclusive and accountable future for our industry and the communities we serve.
The journey may be challenging, but the rewards – both for our businesses and for society – are well worth the effort. With a shared commitment to ESG, we can transform out-of-home advertising into a powerful vehicle for positive change, contributing not only to our bottom line but also to the broader goals of sustainable development and community wellbeing.
By Elie Hajjar, Managing Director, JCDecaux ATA
