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Energy Australia apologises to 400,000 customers; Gina Rinehart criticises media ‘gloating'; and The Who drummer fired for second time in a month
Energy Australia apologises to 400,000 customers; Gina Rinehart criticises media ‘gloating'; and The Who drummer fired for second time in a month

The Guardian

time19-05-2025

  • Business
  • The Guardian

Energy Australia apologises to 400,000 customers; Gina Rinehart criticises media ‘gloating'; and The Who drummer fired for second time in a month

Welcome, readers, to Afternoon Update. Energy Australia has acknowledged that carbon offsets do not prevent or undo damage caused by greenhouse gas emissions and apologised to its customers for allegedly misleading marketing. More than 400,000 Australians had signed up to Energy Australia's 'go neutral' carbon offset program that since 2016 had promised to offset emissions released due to their electricity and gas consumption. The advocacy group Parents for Climate, pictured above, launched legal action in the federal court in 2023 alleging the company had engaged in misleading and deceptive conduct by claiming it was reducing emissions on behalf of its customers, including by buying international carbon offsets. The case, which was the first time a large Australian energy company had faced legal action for alleged greenwashing, was set to begin last week but the parties agreed to a settlement instead. EU floats security pact with Australia as Albanese meets with world leaders in Rome Gina Rinehart criticises 'relentless attack' on Ben Roberts-Smith and media 'gloating' Call by Bondi Junction security guard could have led police to think there was a second offender, inquest told Labor loses $1bn from Victoria's upcoming budget surplus in favour of 'practical' cost-of-living relief The Who fire drummer Zak Starkey for second time in a month Gary Lineker 'to leave the BBC this week' after antisemitism row Guardian Australia's assistant picture editor, Ellen Smith, journeyed to the Pilbara to provide the visuals for our podcast series on Gina Rinehart, Gina: power, privilege and influence. See her selection of shots from the Pilbara, also known as the land of 'Aunty Gina'. 'Many writers hooked on semicolons become an embarrassment to their families and friends.' That's the thinking of Lynne Truss, author of Eats, Shoots & Leaves. The punctuation, first deployed in 1494, seems to be in terminal decline, with its usage in English books plummeting by almost half in two decades – from one appearing in every 205 words in 2000 to one used in every 390 words today. Transparency and integrity experts have voiced alarm over the increasing rate at which freedom of information requests are being rejected. On Sunday, Guardian Australia revealed FoI refusals are at record rates, with 27% of FoI requests rejected outright in the December 2024 quarter. That's a high not seen since at least 2014-15, data shows. Sign up to Afternoon Update Our Australian afternoon update breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Fed up with being inside all day? Missing fresh air and nature? Five people who ditched their desks for the great outdoors revealed the truth about their new lives, with one saying 'it was like I woke up'. Today's starter word is: CANT. You have five goes to get the longest word including the starter word. Play Wordiply. Enjoying the Afternoon Update? Then you'll love our Morning Mail newsletter. Sign up here to start the day with a curated breakdown of the key stories you need to know, and complete your daily news roundup. And follow the latest in US politics by signing up for This Week in Trumpland. If you have a story tip or technical issue viewing this newsletter, please reply to this email. If you are a Guardian supporter and need assistance with regards to contributions and/or digital subscriptions, please email

Aussie energy company apologises to 400,000 customers over now deleted website claims
Aussie energy company apologises to 400,000 customers over now deleted website claims

Yahoo

time19-05-2025

  • 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.

EnergyAustralia Apologizes to Customers After Greenwashing Case
EnergyAustralia Apologizes to Customers After Greenwashing Case

Bloomberg

time19-05-2025

  • 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.

Allegations over ‘carbon-neutral' marketing
Allegations over ‘carbon-neutral' marketing

The Australian

time19-05-2025

  • 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.

Energy Australia apologises to 400,000 customers and settles greenwashing legal action
Energy Australia apologises to 400,000 customers and settles greenwashing legal action

The Guardian

time19-05-2025

  • Business
  • The Guardian

Energy Australia apologises to 400,000 customers and settles greenwashing legal action

A major Australian energy company has acknowledged that carbon offsets do not prevent or undo damage caused by greenhouse gas emissions and apologised to its customers for allegedly misleading marketing. More than 400,000 Australians had signed up to Energy Australia's 'go neutral' carbon offset program that since 2016 had promised to offset emissions released due to their electricity and gas consumption. The advocacy group Parents for Climate launched legal action in the federal court in 2023 alleging the company had engaged in misleading and deceptive conduct by claiming it was reducing emissions on behalf of its customers, including by buying international carbon offsets. Sign up for Guardian Australia's breaking news email The case, which was the first time a large Australian energy company had faced legal action for alleged greenwashing, was set to begin last week but the parties agreed to a settlement instead. In a statement on Monday, Energy Australia said it acknowledged that carbon offsetting was 'not the most effective way to assist customers to reduce their emissions' and apologised to 'any customer who felt that the way it marketed its go neutral products was unclear'. The company's statement, agreed as part of the settlement said: 'Greenhouse gases are harmful to the environment and contribute to climate change. 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. Even with carbon offsetting, the emissions released from burning fossil fuels for a customer's energy use still contribute to climate change.' Parents for Climate's chief executive, Nic Seton, said it was a 'historic acknowledgement', a 'huge step forward' for the company's 1.6 million customers and sent 'a powerful message that the era of unchecked greenwashing is over'. 'Energy Australia's statement makes clear that offsets should not be used as a license to pollute,' Seton said. 'It is no longer tenable to market polluting products as 'carbon neutral' and lead customers to believe that by signing up they are doing good for the planet.' Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion Seton said the case was not just Energy Australia's program, which ended in July 2024. 'It's about holding companies to a higher standard across the board,' he said. 'Greenwashing isn't harmless. It's costing families money, delaying climate action, and eroding trust.' Both Parents for Climate and Energy Australia said the settlement followed questions about whether the federal government Climate Active program, which certifies carbon offsets, was delivering what it promised. Energy Australia's chief customer officer, Kate Gibson, said the company participated in the Climate Active certified carbon offset program 'in good faith' but now accepted there is 'legitimate public concern about the efficacy of these programs'. 'Carbon offsets should not be used to delay or diminish the important work that needs to be done to actively decarbonise,' she said. 'Energy Australia is now focused on more effective ways of helping its customers to directly reduce the emissions associated with their energy use.'

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