Energy Australia apologies after greenwashing lawsuit

🤷What happened:

Energy Australia has reached a settlement with climate advocacy group Parents for Climate, after being accused of misleading customers through its “Go Neutral” product.

🧑‍⚖️ The allegation:

Parents for Climate took the energy provider to court, arguing that hundreds of thousands of customers were misled into thinking their gas and electricity usage would be carbon neutral.

🍃 First of its kind:

This was the first Australian case targeting a company over carbon-neutral branding and greenwashing — a term for deceptive eco-friendly marketing.

⁉️ What is greenwashing?

Greenwashing refers to when a company makes its products or practices seem more environmentally friendly than they actually are.

💨 The argument:

Lawyers for Parents for Climate claimed Energy Australia implied emissions from fossil fuels could be offset through the purchase of carbon credits — misleadingly presenting them as a solution to pollution.

🌏 The issue with offsets:

Parents for Climate stressed that burning fossil fuels releases emissions that carbon offsets don’t truly or permanently eliminate.

📢 Energy Australia responds

In a statement published this morning, Energy Australia apologised for the lack of clarity.

“Burning fossil fuels creates greenhouse gas emissions that are not prevented or undone by carbon offsets. This could have been made clearer to customers.”

“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. EnergyAustralia has now shifted its focus to direct emissions reductions.”