[ECO]What is Sportswashing?

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Fossil fuel giants spend billions on sports sponsorships, utilizing “sportswashing”—defined as leveraging sports to boost public image—amid climate scrutiny.

A comprehensive

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(NWI) has uncovered the extensive financial ties between the fossil fuel industry and the world of sports. The climate think tank’s research reveals that oil and gas companies have invested at least $5.6 billion in sportswashing sponsorship deals across various sports, including motorsports, football, golf, and winter sports.

The report, titled “Dirty Money,” meticulously tracked over 200 sponsorship arrangements between sports organizations and fossil fuel companies. This influx of money has left virtually no major spectator sport untouched by the oil and gas industry’s influence.

To define sportswashing, it’s the practice of using sports sponsorships and associations to improve a tarnished reputation. What is sportswashing in the context of the fossil fuel industry? It’s a strategic effort to align their brand with the positive image and health benefits of sports, diverting attention from their role in the climate crisis and air pollution-related deaths.

The scale of this sportswashing effort is substantial. Saudi Aramco, the national oil company of Saudi Arabia, emerged as the largest single investor identified in the report. The company has committed nearly $1.3 billion across ten separate deals. Following closely behind is the petrochemical giant Ineos, with $777 million in sponsorship agreements. Shell and TotalEnergies have also made significant investments, allocating $470 million and $340 million, respectively, to sports sponsorships.

Football received the highest number of individual sponsorship deals, with 59 arrangements totaling almost $1 billion. However, motorsports (naturally) attracted the largest financial investment, with $2.2 billion spread across 40 sportswashing deals.

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The report highlights how these sponsorships extend beyond team and event partnerships. High-profile athletes such as Cristiano Ronaldo, Lionel Messi, Tyson Fury, and Anthony Joshua have been recruited for promotional activities in the Middle East as part of these deals.

The motivations behind this influx of fossil fuel money into sports are multifaceted. The NWI report on sportswashing suggests that these companies are attempting to buy “social license to operate” by associating themselves with the positive aspects of sports. This strategy bears similarities to past tobacco industry practices, which used sports sponsorships to maintain a positive public image before such partnerships were largely banned.

The report draws attention to the stark contrast between the health impacts of fossil fuels and the positive associations of sports. It notes that air pollution alone, largely attributed to fossil fuel use, is estimated to cause over 5 million deaths annually.

Mohammed bin Salman, the crown prince of Saudi Arabia, publicly acknowledged the economic motivations behind these sponsorships in 2023, stating, “If sportswashing is going to increase my GDP by 1%, then we’ll continue doing sportswashing.”

The NWI research team employed a comprehensive methodology to compile this data. They scoured news articles and press releases, supplementing their findings with information from SportBusiness, a specialist financial publication. For deals where specific financial details were not disclosed, the researchers estimated values based on comparable arrangements.

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Motorsports attracted the largest financial investment, with $2.2 billion spread across 40 sportswashing deals. Photo by txomcs on Pexels

In response to the report’s findings, a TotalEnergies spokesperson emphasized the company’s long-standing partnerships with major sporting events, highlighting their aim to share “the passion for sport and the values it represents” with their audiences and clients.

Shell, when contacted, pointed to their investments in low-carbon solutions, stating that they allocated $5.6 billion (23% of their capital spending) to such initiatives last year. This investment, according to Shell, supports the development of e-mobility, low-carbon fuels, renewable power, hydrogen, and carbon capture and storage technologies.

The extensive reach of fossil fuel sponsorships in sports raises questions about the long-term implications for both the sports industry and public perception of oil and gas companies. As awareness of climate change and its impacts grows, the effectiveness and ethical considerations of these sponsorship strategies may come under increasing scrutiny.

This report sheds light on the complex relationship between the fossil fuel industry and the world of sports, highlighting the significant financial resources being deployed in an effort to maintain a positive public image amidst growing environmental concerns.

The growing scrutiny of fossil fuel sponsorships in sports mirrors broader societal shifts towards environmental consciousness. As climate change becomes an increasingly urgent global concern, sports organizations may face mounting pressure to reconsider their financial relationships with oil and gas companies. This could potentially lead to a reevaluation of sponsorship policies across various sporting bodies and events.

Some sports leagues and teams have already begun to distance themselves from fossil fuel sponsors, citing environmental concerns and the desire to align with more sustainable practices. This trend may accelerate as fans and athletes alike become more vocal about the need for sports to play a positive role in addressing climate change.

The future of these sponsorships remains uncertain. While the financial incentives are significant, the potential reputational risks for both sports entities and fossil fuel companies are growing. As the global energy landscape continues to evolve, with a shift towards renewable sources, the sports industry may need to adapt its sponsorship strategies to reflect changing societal values and environmental priorities.

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