Latest news with #KateGibson
The Australian
19-05-2025
- Business
- The Australian
Allegations over ‘carbon-neutral' marketing
EnergyAustralia, the third largest electricity and gas retailer in Australia, has reached an out-of-court settlement with climate advocacy group Parents for Climate to resolve a high-profile greenwashing case that alleged the energy retailer misled more than 400,000 customers through its now-defunct 'Go Neutral' product. The case, which was set to begin in the Federal Court last week, was the first of its kind in Australia targeting 'carbon-neutral' marketing claims, and marked the first time a major energy provider faced legal action for alleged greenwashing. Parents for Climate, a registered charity, argued that EnergyAustralia's promotion of its Go Neutral product gave consumers the impression they were meaningfully reducing emissions. In reality, the program relied on international carbon credits – some of which have been heavily criticised for questionable effectiveness in abating carbon pollution. The settlement on Monday avoids what could have been a landmark trial with wide-ranging implications for corporate climate marketing. Under the terms, EnergyAustralia acknowledged the product was 'not the most effective' way to cut emissions and issued a formal apology. While details remain confidential, the agreement sees all legal proceedings discontinued. EnergyAustralia's chief customer officer, Kate Gibson, said the company developed the program in good faith as part of its participation in the federal government's Climate Active certification scheme, a voluntary initiative encouraging business to measure and offset emissions. 'In recent years, questions have begun to emerge about the benefits of carbon offsets, including those offered as part of certified government programs such as Climate Active,' Ms Gibson said. 'EnergyAustralia accepts that there is legitimate public concern about the efficacy of these programs.' The Go Neutral product has since been withdrawn. Parents for Climate's legal action was seen as a bold move by a relatively small charity, especially given the financial risk of a loss in court. The case garnered significant public attention amid growing scrutiny of corporate environmental claims and the broader integrity of carbon offset markets. While the settlement spares EnergyAustralia from potential court-ordered penalties, it represents a reputational blow at a time when it is trying to improve public perception and accelerate its energy transition after years of financial turbulence. The case also adds to growing unease surrounding the Climate Active scheme. Once a flagship government program to support corporate climate action, it has seen more than 100 companies – including Telstra, NRMA, and Australia Post – quietly exit in the past 18 months. Most recently, $230bn super fund-backed IFM Investors also withdrew. Critics have argued that reliance on low-quality international offsets undermines the credibility of net-zero claims, while supporters maintain the program offers an important framework for encouraging emissions accountability in the private sector. The EnergyAustralia case is expected to serve as a cautionary tale for other businesses relying heavily on carbon offsets in their climate strategies. Legal experts suggest the settlement could encourage further litigation if companies continue to promote environmental claims without transparency or rigor. With regulators and consumers increasingly demanding proof of real emissions reductions, corporate Australia may face a reckoning over how it markets its climate credentials. Colin Packham Business reporter Colin Packham is the energy reporter at The Australian. He was previously at The Australian Financial Review and Reuters in Sydney and Canberra. Nation Victoria is committed to Australia's most aggressive renewable energy plan, which is acknowledged is exposed to unfavourable weather. It insists, however, it can manage that risk. Business A green hydrogen project in the NT which counted Osaka Gas as one of its backers has been paused. It is the latest setback for true believers of the renewable energy source, after Andrew Forrest's Fortescue cut 90 jobs this week.
The Advertiser
18-05-2025
- Business
- The Advertiser
Carbon offsets set aside following greenwashing lawsuit
One of Australia's largest energy firms has issued an apology to more than 400,000 customers, acknowledging that carbon offsets "do not prevent or undo harms" caused by burning fossil fuels. EnergyAustralia issued the statement early on Monday following a lawsuit launched by Parents for Climate that had been scheduled to be heard in the NSW Federal Court on Wednesday last week. The group, with more than 20,000 members, called EnergyAustralia's acknowledgement a win for Australian consumers but said it could also set a standard for the use of carbon offsets and environmentally friendly marketing by other companies. The lawsuit, filed in August 2023, claimed the energy generator and retailer misled customers using its Go Neutral products that were marketed as "carbon neutral" due to the purchase of carbon offsets and claimed consumers would have a "positive impact on the environment". In its statement, EnergyAustralia apologised to customers who felt the marketing claims were unclear and acknowledged carbon offsets did not reverse environmental harm. "While offsets can help people to invest in worthwhile projects that may reduce greenhouse gas emissions elsewhere, offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use," the statement said. "Even with carbon offsetting, the emissions released from burning fossil fuels for a customer's energy use still contribute to climate change." EnergyAustralia withdrew its Go Neutral plans from the market in 2024, and chief customer officer Kate Gibson said the company would focus on direct efforts to reduce emissions in future. "Carbon offsets should not be used to delay or diminish the important work that needs to be done to actively decarbonise," she said. The energy giant's acknowledgement should herald a fresh approach to the use of carbon offsets in Australia, Parents for Climate chief executive Nic Seton said, as greenwashing had become too common. "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," he said. "This isn't just about EnergyAustralia – it's about holding companies to a higher standard across the board." Australian regulations for corporate environmental claims were not strong enough, Mr Seton said, and the government should consider ending Climate Active carbon neutral certification that had been under review since October 2023. The outcome of the court case could set a standard for corporate environmental claims in Australia, Equity Generation Lawyers principal lawyer David Hertzberg, who represented the charity, said. "Today's outcome is a watershed moment in greenwashing litigation in Australia," he said. EnergyAustralia ranked as Australia's third-largest emitter in 2023-2024, according to statistics from the Clean Energy Regulator, and has more than 1.6 million customers. One of Australia's largest energy firms has issued an apology to more than 400,000 customers, acknowledging that carbon offsets "do not prevent or undo harms" caused by burning fossil fuels. EnergyAustralia issued the statement early on Monday following a lawsuit launched by Parents for Climate that had been scheduled to be heard in the NSW Federal Court on Wednesday last week. The group, with more than 20,000 members, called EnergyAustralia's acknowledgement a win for Australian consumers but said it could also set a standard for the use of carbon offsets and environmentally friendly marketing by other companies. The lawsuit, filed in August 2023, claimed the energy generator and retailer misled customers using its Go Neutral products that were marketed as "carbon neutral" due to the purchase of carbon offsets and claimed consumers would have a "positive impact on the environment". In its statement, EnergyAustralia apologised to customers who felt the marketing claims were unclear and acknowledged carbon offsets did not reverse environmental harm. "While offsets can help people to invest in worthwhile projects that may reduce greenhouse gas emissions elsewhere, offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use," the statement said. "Even with carbon offsetting, the emissions released from burning fossil fuels for a customer's energy use still contribute to climate change." EnergyAustralia withdrew its Go Neutral plans from the market in 2024, and chief customer officer Kate Gibson said the company would focus on direct efforts to reduce emissions in future. "Carbon offsets should not be used to delay or diminish the important work that needs to be done to actively decarbonise," she said. The energy giant's acknowledgement should herald a fresh approach to the use of carbon offsets in Australia, Parents for Climate chief executive Nic Seton said, as greenwashing had become too common. "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," he said. "This isn't just about EnergyAustralia – it's about holding companies to a higher standard across the board." Australian regulations for corporate environmental claims were not strong enough, Mr Seton said, and the government should consider ending Climate Active carbon neutral certification that had been under review since October 2023. The outcome of the court case could set a standard for corporate environmental claims in Australia, Equity Generation Lawyers principal lawyer David Hertzberg, who represented the charity, said. "Today's outcome is a watershed moment in greenwashing litigation in Australia," he said. EnergyAustralia ranked as Australia's third-largest emitter in 2023-2024, according to statistics from the Clean Energy Regulator, and has more than 1.6 million customers. One of Australia's largest energy firms has issued an apology to more than 400,000 customers, acknowledging that carbon offsets "do not prevent or undo harms" caused by burning fossil fuels. EnergyAustralia issued the statement early on Monday following a lawsuit launched by Parents for Climate that had been scheduled to be heard in the NSW Federal Court on Wednesday last week. The group, with more than 20,000 members, called EnergyAustralia's acknowledgement a win for Australian consumers but said it could also set a standard for the use of carbon offsets and environmentally friendly marketing by other companies. The lawsuit, filed in August 2023, claimed the energy generator and retailer misled customers using its Go Neutral products that were marketed as "carbon neutral" due to the purchase of carbon offsets and claimed consumers would have a "positive impact on the environment". In its statement, EnergyAustralia apologised to customers who felt the marketing claims were unclear and acknowledged carbon offsets did not reverse environmental harm. "While offsets can help people to invest in worthwhile projects that may reduce greenhouse gas emissions elsewhere, offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use," the statement said. "Even with carbon offsetting, the emissions released from burning fossil fuels for a customer's energy use still contribute to climate change." EnergyAustralia withdrew its Go Neutral plans from the market in 2024, and chief customer officer Kate Gibson said the company would focus on direct efforts to reduce emissions in future. "Carbon offsets should not be used to delay or diminish the important work that needs to be done to actively decarbonise," she said. The energy giant's acknowledgement should herald a fresh approach to the use of carbon offsets in Australia, Parents for Climate chief executive Nic Seton said, as greenwashing had become too common. "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," he said. "This isn't just about EnergyAustralia – it's about holding companies to a higher standard across the board." Australian regulations for corporate environmental claims were not strong enough, Mr Seton said, and the government should consider ending Climate Active carbon neutral certification that had been under review since October 2023. The outcome of the court case could set a standard for corporate environmental claims in Australia, Equity Generation Lawyers principal lawyer David Hertzberg, who represented the charity, said. "Today's outcome is a watershed moment in greenwashing litigation in Australia," he said. EnergyAustralia ranked as Australia's third-largest emitter in 2023-2024, according to statistics from the Clean Energy Regulator, and has more than 1.6 million customers. One of Australia's largest energy firms has issued an apology to more than 400,000 customers, acknowledging that carbon offsets "do not prevent or undo harms" caused by burning fossil fuels. EnergyAustralia issued the statement early on Monday following a lawsuit launched by Parents for Climate that had been scheduled to be heard in the NSW Federal Court on Wednesday last week. The group, with more than 20,000 members, called EnergyAustralia's acknowledgement a win for Australian consumers but said it could also set a standard for the use of carbon offsets and environmentally friendly marketing by other companies. The lawsuit, filed in August 2023, claimed the energy generator and retailer misled customers using its Go Neutral products that were marketed as "carbon neutral" due to the purchase of carbon offsets and claimed consumers would have a "positive impact on the environment". In its statement, EnergyAustralia apologised to customers who felt the marketing claims were unclear and acknowledged carbon offsets did not reverse environmental harm. "While offsets can help people to invest in worthwhile projects that may reduce greenhouse gas emissions elsewhere, offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use," the statement said. "Even with carbon offsetting, the emissions released from burning fossil fuels for a customer's energy use still contribute to climate change." EnergyAustralia withdrew its Go Neutral plans from the market in 2024, and chief customer officer Kate Gibson said the company would focus on direct efforts to reduce emissions in future. "Carbon offsets should not be used to delay or diminish the important work that needs to be done to actively decarbonise," she said. The energy giant's acknowledgement should herald a fresh approach to the use of carbon offsets in Australia, Parents for Climate chief executive Nic Seton said, as greenwashing had become too common. "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," he said. "This isn't just about EnergyAustralia – it's about holding companies to a higher standard across the board." Australian regulations for corporate environmental claims were not strong enough, Mr Seton said, and the government should consider ending Climate Active carbon neutral certification that had been under review since October 2023. The outcome of the court case could set a standard for corporate environmental claims in Australia, Equity Generation Lawyers principal lawyer David Hertzberg, who represented the charity, said. "Today's outcome is a watershed moment in greenwashing litigation in Australia," he said. EnergyAustralia ranked as Australia's third-largest emitter in 2023-2024, according to statistics from the Clean Energy Regulator, and has more than 1.6 million customers.
West Australian
18-05-2025
- Business
- West Australian
Carbon offsets set aside following greenwashing lawsuit
One of Australia's largest energy firms has issued an apology to more than 400,000 customers, acknowledging that carbon offsets "do not prevent or undo harms" caused by burning fossil fuels. EnergyAustralia issued the statement early on Monday following a lawsuit launched by Parents for Climate that had been scheduled to be heard in the NSW Federal Court on Wednesday last week. The group, with more than 20,000 members, called EnergyAustralia's acknowledgement a win for Australian consumers but said it could also set a standard for the use of carbon offsets and environmentally friendly marketing by other companies. The lawsuit, filed in August 2023, claimed the energy generator and retailer misled customers using its Go Neutral products that were marketed as "carbon neutral" due to the purchase of carbon offsets and claimed consumers would have a "positive impact on the environment". In its statement , EnergyAustralia apologised to customers who felt the marketing claims were unclear and acknowledged carbon offsets did not reverse environmental harm. "While offsets can help people to invest in worthwhile projects that may reduce greenhouse gas emissions elsewhere, offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use," the statement said. "Even with carbon offsetting, the emissions released from burning fossil fuels for a customer's energy use still contribute to climate change." EnergyAustralia withdrew its Go Neutral plans from the market in 2024, and chief customer officer Kate Gibson said the company would focus on direct efforts to reduce emissions in future. "Carbon offsets should not be used to delay or diminish the important work that needs to be done to actively decarbonise," she said. The energy giant's acknowledgement should herald a fresh approach to the use of carbon offsets in Australia, Parents for Climate chief executive Nic Seton said, as greenwashing had become too common. "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," he said. "This isn't just about EnergyAustralia ? it's about holding companies to a higher standard across the board." Australian regulations for corporate environmental claims were not strong enough, Mr Seton said, and the government should consider ending Climate Active carbon neutral certification that had been under review since October 2023. The outcome of the court case could set a standard for corporate environmental claims in Australia, Equity Generation Lawyers principal lawyer David Hertzberg, who represented the charity, said. "Today's outcome is a watershed moment in greenwashing litigation in Australia," he said. EnergyAustralia ranked as Australia's third-largest emitter in 2023-2024, according to statistics from the Clean Energy Regulator, and has more than 1.6 million customers.
Perth Now
18-05-2025
- Business
- Perth Now
Carbon offsets set aside following greenwashing lawsuit
One of Australia's largest energy firms has issued an apology to more than 400,000 customers, acknowledging that carbon offsets "do not prevent or undo harms" caused by burning fossil fuels. EnergyAustralia issued the statement early on Monday following a lawsuit launched by Parents for Climate that had been scheduled to be heard in the NSW Federal Court on Wednesday last week. The group, with more than 20,000 members, called EnergyAustralia's acknowledgement a win for Australian consumers but said it could also set a standard for the use of carbon offsets and environmentally friendly marketing by other companies. The lawsuit, filed in August 2023, claimed the energy generator and retailer misled customers using its Go Neutral products that were marketed as "carbon neutral" due to the purchase of carbon offsets and claimed consumers would have a "positive impact on the environment". In its statement, EnergyAustralia apologised to customers who felt the marketing claims were unclear and acknowledged carbon offsets did not reverse environmental harm. "While offsets can help people to invest in worthwhile projects that may reduce greenhouse gas emissions elsewhere, offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use," the statement said. "Even with carbon offsetting, the emissions released from burning fossil fuels for a customer's energy use still contribute to climate change." EnergyAustralia withdrew its Go Neutral plans from the market in 2024, and chief customer officer Kate Gibson said the company would focus on direct efforts to reduce emissions in future. "Carbon offsets should not be used to delay or diminish the important work that needs to be done to actively decarbonise," she said. The energy giant's acknowledgement should herald a fresh approach to the use of carbon offsets in Australia, Parents for Climate chief executive Nic Seton said, as greenwashing had become too common. "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," he said. "This isn't just about EnergyAustralia – it's about holding companies to a higher standard across the board." Australian regulations for corporate environmental claims were not strong enough, Mr Seton said, and the government should consider ending Climate Active carbon neutral certification that had been under review since October 2023. The outcome of the court case could set a standard for corporate environmental claims in Australia, Equity Generation Lawyers principal lawyer David Hertzberg, who represented the charity, said. "Today's outcome is a watershed moment in greenwashing litigation in Australia," he said. EnergyAustralia ranked as Australia's third-largest emitter in 2023-2024, according to statistics from the Clean Energy Regulator, and has more than 1.6 million customers.
