When an oil and gas company sponsors an Australian Football League (AFL) team, it isn't necessarily trying to sell its products directly to fans. For example, Fremantle Dockers supporters can't go to their local service station and buy a can of Woodside Energy’s liquefied natural gas. This is different from the typical sponsorship model, where companies like fast food chains or beer brands aim to encourage purchases by making their logos visible on team jerseys. Recently, when Fremantle's top ticket holder, Tame Impala frontman Kevin Parker, covered the Woodside logo on his team jersey during a tour, it reignited calls to remove the oil and gas sponsor over its role in climate change. This raises a question: if fossil fuel companies don't sell directly to the public, why spend millions on high-profile sponsorships and risk public criticism?
Fossil fuel companies like Woodside sponsor sports teams and community organizations to build "social capital," which is a form of goodwill that can help cushion them from public backlash. These companies need strong public support to influence policymakers and local governments, as they rely on approvals for new projects. To stay close to the communities where they operate, they often invest in visible sponsorships with nearby teams. For example, the Australian arm of the Indian company Adani, known as Bravus, sponsors the North Queensland Cowboys, a regional team near its coal mine.
Prof Emma Sherry, dean of RMIT University's school of management, explains that companies with complex relationships with local communities often use sports sponsorships to tap into fans' emotional loyalty. "Companies hope to create a positive feeling toward themselves by aligning with the teams people love," she says. While this isn't inherently harmful, the situation becomes more complicated when the sponsor is a major contributor to carbon emissions. The link between fossil fuel companies and sport is not new, but fan unease is growing, similar to the backlash seen against sports betting sponsors.
When Woodside renewed its sponsorship with the Fremantle Dockers at the end of 2024, it included a statement that both the company and the team had a "focus on sustainability." This claim became harder to defend after Woodside abandoned its long-term emissions and clean energy targets. Despite public campaigns calling for the sponsor's removal, Woodside remains committed to its partnership. An investigation by climate communication charity Comms Declare found that major fossil fuel companies are reaching children through schools, museums, and youth sports programs. Woodside is heavily involved in these initiatives, including sponsoring surf singlets used by kids in the beach "nippers" program.
As climate change becomes more visible, sports organizations are beginning to recognize the risks posed by a warming planet. Prof Sherry notes that sports depend on the natural environment, and rising temperatures could force changes in how games are played. "If the snow melts, snow sports disappear. If there are droughts, we might not be able to play on grassy fields," she says. With younger fans increasingly aware of climate issues, the pressure on sports to address environmental impacts is growing, and the traditional sponsorship model is beginning to shift.
Fossil Fuel Sponsorships in Sports Spark Debate Over Climate Impact and Community Influence
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