Beyond the statement: What agencies with ESG commitments tell us about sector priorities

Environmental, Social and Governance (ESG) frameworks have evolved in recent times from starting out as somewhat niche investment criteria to becoming mainstream business practice. They provide structured approaches for organisations to both measure and communicate their environmental and social impact, and what began as a tool for investors to assess long-term risk and value creation has expanded into a comprehensive framework that can encompass everything from carbon footprint reduction and supply chain ethics to board diversity and stakeholder engagement.

For many businesses, ESG statements have become both a strategic guide and a public commitment, setting out how they intend to balance profit with purpose in an increasingly conscious marketplace.

For agencies, the question of ESG can present some particularly interesting dynamics. As businesses that might, for example, create campaigns, shape brand narratives and influence consumer behaviour, agencies occupy a unique position in the ESG landscape. They are simultaneously individual businesses that are implementing their own ESG commitments and enablers that are helping clients communicate theirs. Like all businesses, the growing demand for sustainability and social responsibility in the provision of services, as well as intensifying competition for talent seeking purpose-driven employers, means that ESG statements are shifting from something that is nice-to-have, to being critical components of any business strategy.

But what do agencies who have ESG statements look like compared to the sector as a whole, what does it tell us about our sector, and what can we learn from those agencies who have made these public commitments?

The scale of ESG adoption across all agencies

Our research shows that 9,034 agencies out of the 25,192 we have currently mapped (August 2025) have an ESG statement on their website. These agencies make up 35.9% of the sector as we have mapped it, and yet their economic impact extends far beyond the slightly more than 1-in-3 representation.

ESG-committed agencies:

• Employ 63% of the agency sector workforce
• Create 62% of total turnover across the sector
• Produce 62% of the agency sectors total GVA
• Have attracted 56% of all investment funding into the agency sector

This concentration suggests that ESG adoption might correlate with agency scale and market influence raising questions about whether larger agencies are leading ESG adoption, or whether ESG commitments are in themselves helping to drive agency growth. 

Does size and maturity determine ESG commitment?

The relationship between agency size and ESG adoption reveals clear patterns when it comes to the types of agencies that are making such commitments. While only 29% of agencies with 1-2 employees have ESG statements, this proportion increases steadily through the size intervals to reach 73% for agencies with a headcount of 251+. It is worth noting here that there are certain ESG reporting requirements for certain large companies, particularly those that are publicly listed or have significant turnover and employee numbers. 

When measuring agency size by turnover, similar patterns emerge. Just 32% of agencies with a turnover of up to £500k have ESG statements, compared to 65% of agencies with turnover over £50m. This correlation between size and ESG adoption raises compelling questions about the drivers behind sustainability commitments in the agency sector. It also suggests that there might be a correlation between size and acquisitions, which in turn would increase the likelihood of such agencies having ESG statements as this is an increasingly important aspect when it comes to due diligence processes, deal structuring and post-merger integration.

The data also reveals interesting patterns around agency maturity. Newer agencies (1-3 years old) show 33% ESG adoption, below the sector average. This rises to 41% for agencies that have been in business for 16 years or more. It feels likely that established agencies feel greater pressure than younger agencies to formalise their commitments. At the same time, from a procurement perspective it is becoming increasingly important to have considered ESG for agencies who want to work with brands who have a procurement function. So developing ESG commitments may become something that increasingly happens earlier in agency development. 

Are ESG-committed agencies outperforming their peers?

Perhaps the most intriguing finding from our research is that agencies with ESG statements appear to be outperforming the sector in growth metrics. The 9,034 agencies with ESG statements are showing 9.8% growth compared to the sector average of 8.2%. More striking still, 14.5% of ESG-committed agencies are classed as fast-growing (+20%) compared to 11.9% across the sector as a whole.

Overall, 25% of all agencies with an ESG statement are showing growth rates of over 10%, compared to 20.3% of all agencies. These figures perhaps challenge the persistent narrative that sustainability commitments can come at the expense of commercial performance.

The correlation between ESG commitment and growth raises fascinating questions about causation. Are faster-growing agencies more likely to invest in ESG frameworks, or does ESG commitment itself contribute to strong business performance through better client relationships, talent attraction or operational efficiency? 

Which specialisms are embracing ESG commitments?

The distribution of ESG adoption across the 29 agency subsectors we have mapped shows some interesting patterns about how different specialisms approach sustainability commitments. Social purpose and sustainability agencies lead with 70% ESG adoption, followed by Search and performance (58.1%), Social media (57.4%), Digital (54.7%) and Content (54.3%).

At the other end of the spectrum, Video and production agencies show the lowest ESG adoption at 27.2% followed by Media (27.3%), Amazon/Marketplace (27.6%), Market research (29.1%) and Copywriting (29.7%). Do these variations suggest that certain types of agency work may be more naturally aligned with ESG considerations or that client expectations vary significantly across different specialisms?

The contrast is particularly striking between digital-focused specialisms, which show higher ESG adoption rates, and traditional creative services, which tend toward lower adoption. Does this reflect different client bases, varying levels of ESG literacy or fundamental differences in how these specialisms view their role when it comes to sustainability and social impact?

Is there a gender dimension to ESG commitment?

Interestingly, there seems to be very little variation in the data when it comes to agencies with ESG commitments and the sector as a whole. Agencies with ESG statements are 18.7% women-led, compared to the sector average of 19.5% and 22.2% women-founded, compared to the sector average of 23.5%. Additionally, 30% of directors in agencies with ESG statements are women, compared to 30.9% across all agencies we have mapped.

These figures suggest that ESG adoption and gender representation may not correlate as strongly as might be expected, raising questions about whether formal ESG frameworks capture the full spectrum of diversity and inclusion efforts or whether different agency types approach these issues through different mechanisms.

What does the ESG-commitment data tell us about our sector?

The patterns emerging from ESG adoption across agencies reveal some important considerations for the sector as a whole. The concentration of ESG statements among larger, more established agencies raises questions about whether sustainability commitments are becoming a marker of agency maturity and market position, or if barriers prevent smaller agencies from formalising their ESG approaches. 

What certainly appears to be the case, is that there is some element of clients driving this process, especially when it comes to procurement. Agencies who want to work with bigger brands and budgets are likely to need ESG commitments as part of the process. At the same time, there will also be agency owners and leadership teams who are applying their own values to their businesses through their ESG commitments. So what factors influence the establishment of ESG frameworks in any given situation will depend on the individual agency. 

When looking at performance, the correlation between ESG adoption and growth challenges traditional assumptions about the trade-offs between profit and purpose. If agencies with ESG commitments are indeed outperforming their peers, what does this suggest about client expectations, talent attraction or operational advantages that ESG frameworks might provide?

The variation across subsectors points to an uneven ESG landscape within the agency community. Are clients in certain sectors driving demand for ESG-committed agencies or do some specialisms naturally lend themselves to sustainability considerations more than others? And how might this change as ESG expectations from clients, employees and investors continue to evolve?

What does meaningful ESG commitment mean for agencies?

Perhaps most importantly, the data raises questions about what constitutes meaningful ESG commitment in the agency context. Does having an ESG statement on a website translate to genuine sustainability practice, positive working culture or meaningful societal impact? Or are ESG statements more a marker of agency maturity and part of a general process of agency development, formalising and communicating commitments that are already being made?

The question for agencies and the wider agency community is perhaps less to do with communicating ESG principles, but how to engage with them in a real and impactful way. And how can we be effective in our commitments within the unique constraints and challenges that every agency, large or small, old or young, generalist or specialist, must face?

FAQs

For an overview of our methodology, the work with our partners at The Data City, and a glossary of definitions for all our data points, please take a look at our FAQs page.

Photo by Velodi Tsaguria on Unsplash