Latest news with #GoNeutral
Sydney Morning Herald
25-05-2025
- Business
- Sydney Morning Herald
Greenwashing is rife in Australia, but could its days be numbered?
Have you ever ticked the box to 'fly carbon neutral', had something delivered via 'carbon-neutral shipping' or chosen to pay a bit extra to buy 'carbon-neutral gas' from your energy retailer? These green premium products are marketed to us everywhere. They target eco-conscious consumers wanting to do the right thing and create the impression that by paying a premium, the carbon dioxide released into the atmosphere from flying, shipping or burning gas are neutralised or 'offset' with carbon credits. But the settlement of a recent court case has shown not only that this kind of marketing is misleading Australian consumers; it's also a form of greenwashing. This is a practice by which a business makes its products or services seem more sustainable than they are, usually in a bid to create a positive brand image or improve their reputation. According to a 2023 study by the Australian Competition and Consumer Commission, 57 per cent of businesses reviewed made concerning claims about their environmental credentials. This week, a case heard in the Federal Court of Australia offered us an up-close view of what this looks like in practice. In 2023, the advocacy group Parents for Climate first filed a greenwashing case against EnergyAustralia, arguing that the company's 'Go Neutral' gas product misled the more than 400,000 Australian customers who signed up. That's because the carbon offsets purchased by the company did not prevent or undo harms caused by burning fossil fuels. Loading In response to case, this week EnergyAustralia apologised to its customers and acknowledged that 'offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use. Even with carbon offsetting, emissions released from burning fossil fuels for a customer's energy use still contribute to climate change.' The acknowledgement from Australia's third-largest gas retailer that offsets don't neutralise pollution caused from burning gas marks a significant moment for corporate accountability. It also highlights the need for stricter rules on how companies use carbon credits and clearer guidelines around how they communicate this to customers and shareholders. Last year, Climate Integrity also referred Qantas to the ACCC for greenwashing, arguing that its 'Fly Carbon Neutral' option, which customers purchase for an additional fee, misleads customers about the impact of flying. Red Energy has also been approached by Climate Integrity regarding its 'carbon neutral' gas product, which uses a similar marketing tactic as EnergyAustralia.
The Age
25-05-2025
- Business
- The Age
Greenwashing is rife in Australia, but could its days be numbered?
Have you ever ticked the box to 'fly carbon neutral', had something delivered via 'carbon-neutral shipping' or chosen to pay a bit extra to buy 'carbon-neutral gas' from your energy retailer? These green premium products are marketed to us everywhere. They target eco-conscious consumers wanting to do the right thing and create the impression that by paying a premium, the carbon dioxide released into the atmosphere from flying, shipping or burning gas are neutralised or 'offset' with carbon credits. But the settlement of a recent court case has shown not only that this kind of marketing is misleading Australian consumers; it's also a form of greenwashing. This is a practice by which a business makes its products or services seem more sustainable than they are, usually in a bid to create a positive brand image or improve their reputation. According to a 2023 study by the Australian Competition and Consumer Commission, 57 per cent of businesses reviewed made concerning claims about their environmental credentials. This week, a case heard in the Federal Court of Australia offered us an up-close view of what this looks like in practice. In 2023, the advocacy group Parents for Climate first filed a greenwashing case against EnergyAustralia, arguing that the company's 'Go Neutral' gas product misled the more than 400,000 Australian customers who signed up. That's because the carbon offsets purchased by the company did not prevent or undo harms caused by burning fossil fuels. Loading In response to case, this week EnergyAustralia apologised to its customers and acknowledged that 'offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use. Even with carbon offsetting, emissions released from burning fossil fuels for a customer's energy use still contribute to climate change.' The acknowledgement from Australia's third-largest gas retailer that offsets don't neutralise pollution caused from burning gas marks a significant moment for corporate accountability. It also highlights the need for stricter rules on how companies use carbon credits and clearer guidelines around how they communicate this to customers and shareholders. Last year, Climate Integrity also referred Qantas to the ACCC for greenwashing, arguing that its 'Fly Carbon Neutral' option, which customers purchase for an additional fee, misleads customers about the impact of flying. Red Energy has also been approached by Climate Integrity regarding its 'carbon neutral' gas product, which uses a similar marketing tactic as EnergyAustralia.
Yahoo
19-05-2025
- Business
- Yahoo
Aussie energy company apologises to 400,000 customers over now deleted website claims
A major Australian energy company has made an apology to over 400,000 retail gas and electricity customers over key claims advertised on its website. In a statement, EnergyAustralia confirmed it was terminating Go Neutral, which it had spruiked as an environmentally friendly option. The statement was published on Monday, after EnergyAustralia reached a settlement with conservation group Parents for Climate, which had accused it of "greenwashing" the harm done by fossil fuels. Federal Court action launched in 2023 accused the company of misleading or deceptive conduct contrary to the Australian Consumer Law in relation to its carbon offset claims. 'Today, EnergyAustralia acknowledges that carbon offsetting is not the most effective way to assist customers to reduce their emissions and apologises to any customer who felt that the way it marketed its Go Neutral products was unclear,' the energy retailer said. 'EnergyAustralia has now shifted its focus to direct emissions reductions.' The Go Neutral project began in 2016, with EnergyAustralia advertising that customers could offset their emissions at no cost to them. After households opted in, the company claimed it would calculate emissions used and make the home's energy "carbon neutral" by buying carbon offset units to support projects in countries including India, Brazil and Australia. EnergyAustralia was ranked as the nation's third-highest emitter for the 2023-24 year, producing 16.5 million tonnes of carbon emissions. In NSW, Victoria and South Australia it operates two coal-fired and four gas-fired power plants. In Monday's statement, the company explained that customers who opted into Go Neutral were still using energy 'sourced predominantly from fossil fuels' and that "greenhouse gases are harmful to the environment and contribute to climate change". 'Burning fossil fuels creates greenhouse gas emissions that are not prevented or undone by carbon offsets. This could have been made clearer to customers,' it admitted. ✈️ Jetstar passenger request raises questions about recycling claims 👟 Adidas ditches Australian kangaroo leather 😳 Rush to see rare Aussie phenomenon sparks warning Equity Generation Lawyers, which represented Parents for Climate said the settlement highlights a need for companies to ensure their environmental claims 'stack up'. 'As part of the settlement, EnergyAustralia has acknowledged our client's key factual argument: that carbon offsets do not undo the climate harms of burning fossil fuels. That means that, even with carbon offsetting, Go Neutral customer's energy usage still contributed to climate change,' principal lawyer David Hertzberg said. Parents for Climate described the outcome as a 'groundbreaking resolution'. 'Parents have spent too long trying to make careful, considered decisions about where their money goes, especially in a cost-of-living crisis, but corporate greenwashing has pushed them off track,' its CEO Nic Seton said. 'We launched this case as it's deeply frustrating and emotionally exhausting to navigate a maze of vague claims and false promises. Greenwashing undermines trust and gives the dangerous illusion that coal and gas pollution is being addressed when they're not.' Love Australia's weird and wonderful environment? 🐊🦘😳 Get our new newsletter showcasing the week's best stories.
Bloomberg
19-05-2025
- Business
- Bloomberg
EnergyAustralia Apologizes to Customers After Greenwashing Case
CLP Holdings Ltd.'s EnergyAustralia — one of the nation's 'big three' energy companies — apologized to customers for the marketing of its carbon offsetting products. The apology was part of a settlement with advocacy organization Parents for Climate, which launched legal action against the power company in mid-2023 claiming that the marketing of its 'Go Neutral' carbon offsetting products was misleading. EnergyAustralia also acknowledged that offsets do not undo the harms of burning fossil fuels.
Epoch Times
19-05-2025
- Business
- Epoch Times
Parent Group Challenges Energy Giant Over Carbon Claims
A parent group with more than 20,000 members will challenge one of Australia's largest energy companies in court over claims it misled customers about emissions from its products. Representatives from EnergyAustralia will appear in the NSW Federal Court on May 14 to defend the lawsuit filed by Parents for Climate in August 2023. The group claims the company misled more than 400,000 customers using its Go Neutral products, which EnergyAustralia allegedly marketed as 'carbon neutral' due to the purchase of offsets, and claimed consumers would have a 'positive impact on the environment' by purchasing them. But Parents for Climate will argue EnergyAustralia's claims were misleading and deceptive, Chief Executive Nic Seton said, in a lawsuit that will become the first greenwashing case launched against an energy firm in Australia. 'It's one of the most ambitious things that our organisation has ever done,' he told AAP. 'It's an Australian first in that no other product has been tested on these grounds of making carbon-neutral claims based on offsets.' Related Stories 4/21/2025 5/13/2025 The charity, represented by Equity Generation Lawyers, will seek a declaration that EnergyAustralia misled customers about greenhouse gas emissions, a corrective statement to customers, and restrictions on its future marketing. Australia's rules about environmental claims, including 'If we're successful, this could not just change the behaviour of this particular company but send a really clear signal to all companies in Australia who market their products with these sorts of climate claims,' he said. 'Our own analysis of energy companies here in Australia is that this practice is quite common and does need to change.' EnergyAustralia withdrew its Go Neutral products for new customers in November but a spokesperson for the company said it was committed to offering customers clean energy solutions. 'We have been working closely with Parents for Climate over the last number of months,' the spokesperson said. 'We remain optimistic we can resolve this issue together.' EnergyAustralia ranked as Australia's third-highest emitter in 2023-2024, according to The company is one of Australia's largest energy retailers, with 1.6 million customers, and operates two coal-fired and four gas-fired power plants across NSW, Victoria, and South Australia. Earlier this year, EnergyAustralia recommitted to closing its Yallourn coal-fired power station in Victoria by 2028 as part of its 2050 net-zero target.
