The sustainability credentials of prospective partners are already viewed as an important factor among sports sponsors and are going to become more important, according to a new report.
Citing a survey by the European Sponsorship Association, GlobalData’s Net Zero Strategies in Sport report notes that over 60% of sponsors said having a sustainability policy was very or quite important and that over 82% believe that importance is growing.
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The survey reflects the increasing desire of sponsors for the sporting properties with which they partner to be implementing good environmental practices. However, the report adds that sustainability brings both opportunities and risks to sponsor relationships.
Associating themselves with sustainable teams and events can, of course, support the environmental credentials and image of sponsors. In addition, sponsors can affect change with partners by contributing to their sustainability.
However, sponsors are at risk of greenwashing accusations if they have sustainability strategies and market their own sustainability achievements while supporting a sporting property that does not have a sustainability strategy in place or is not delivering on its commitments in that area.
GlobalData’s report outlines that companies in the sports sector are as a whole “far away from net zero,” and it notes: “Intense regulatory pressure on emissions means companies in all sectors need a net zero strategy.”
It contends that sporting properties have an opportunity to engage with sponsors, which are typically much more advanced in their sustainability efforts, to help build their own strategy. “This involves identifying the main sustainability-related risks and opportunities, as well as developing KPIs,” it explains.
The report states that sporting properties may find existing sponsorship revenues at risk and that they are likely to find it more difficult to win new sponsorship contracts if they do not have a sustainability strategy in place. Failure to deliver on environmental commitments could also put properties at risk.
The report elaborates: “Many of the sports industry’s largest sponsors have adopted net zero commitments.
“Nike, Adidas, and Coca-Cola all have net-zero plans that are a part of their overall sustainability strategy.”
Of sporting properties, meanwhile, it adds: “Many of the top sports teams are in the early stages of developing a sustainability strategy. This is except for Formula 1 teams, which have ambitious individual targets that align with Formula 1’s own targets and strategy.
“As sponsors further develop tier net zero strategies, having a net zero plan may help sports teams to futureproof sponsorship and help win new contracts.”
Elsewhere, the Net Zero Strategies in Sport report notes that motorsports teams are investing in biofuels and e-fuels to reduce the carbon footprint of races and logistics, while efforts are also being made among many soccer teams to decarbonise stadiums, operations, fan travel, and merchandise supply chains.
“The English Premier League has launched a league-wide initiative to help teams set net-zero targets,” it adds.
