Latest news with #GoNeutral
Yahoo
12-06-2025
- Business
- Yahoo
Energy company issues apology for misleading more than 400,000 customers with marketing tactic: 'Historic acknowledgement'
A major Australian energy company has taken a rare step: telling the truth. EnergyAustralia, one of the country's biggest power providers, has issued a public apology and agreed to a legal settlement after more than 400,000 customers were misled by its Go Neutral carbon offset program, The Guardian reported. The program, launched in 2016, claimed to cancel out the climate impact of electricity and gas usage through the purchase of international carbon offsets, but a 2023 lawsuit filed by the advocacy group Parents for Climate challenged those claims as greenwashing. Before the case went to trial, EnergyAustralia acknowledged that offsets are "not the most effective way to assist customers to reduce their emissions" and admitted its marketing may have led people to believe their energy use was climate-neutral. "Offsets do not prevent or undo the harms caused by burning fossil fuels," the company said. This admission, the first of its kind by a major Australian energy company, marks a turning point in corporate accountability and climate action. Parents for Climate called it a "historic acknowledgment" and a "huge step forward" for the company's 1.6 million customers, many of whom believed they were making a responsible choice for the planet. The core issue is that carbon offsets were sold as a way to ignore consumption and pollution, under the belief that the company would reduce emissions for its customers. While carbon offsets can play a role in reaching net zero pollution, they must complement local climate policies that cut emissions directly, not substitute them. What does this mean for you? Companies should be wary about misrepresenting their environmental efforts since corporations are being held accountable for their significant role in contributing to the warming climate and making life harder and more expensive for individuals. Business should take note and step up efforts to cut pollution and protect the planet's future. With fossil fuel investments increasingly underperforming compared to clean energy alternatives, the logic for a low-carbon future is now rooted in both economics and ethics. "Greenwashing isn't harmless," said Nic Seton, Parents for Climate CEO. "It's costing families money, delaying climate action, and eroding trust." Do you think misinformation is a major problem in America today? Definitely Only for some people Only with certain issues Not really Click your choice to see results and speak your mind. Seton called the statement "a powerful message that the era of unchecked greenwashing is over." Though the Go Neutral program ended in 2024, the case could set a precedent for global brands. As clean energy businesses drive innovation and job growth, actions including this one show that honesty is good for both the planet and business. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
RNZ News
08-06-2025
- Business
- RNZ News
Big Aussie energy retailer
Big Aussie energy retailer says sorry to customers over carbon offset claims One of Australia's biggest energy retailers has apologised to its customers and settled a lawsuit over its carbon offset programme. Energy Australia's 'Go Neutral' programme promised customers a way to offset the emissions generated by their gas or electricity use - but the company had to admit their gas or electricity use was still sourced mainly from fossil fuels and that - quote - "offsets don't prevent or undo the harms caused by burning fossil fuels" for a customer's energy use. Lobby group Parents for Climate launched legal action against the company - one of the 'big three' retailers in Australia - back in 2023. It accused the company's Go Neutral claims amounted to misleading or deceptive conduct against the country's consumer law. So could the settlement have implications for other companies making similar carbon offset claims? Kathryn is joined by Parents for Climate CEO Nic Seton.
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.
