Today marks the beginning of a landmark legal case involving EnergyAustralia and climate group Parents For Climate, which alleges the energy giant misled customers about its Go Neutral product.
It is also the first time an Australian energy retailer has faced legal action for alleged greenwashing—the practice of misleading consumers into believing something is more environmentally friendly or sustainable than it actually is.
Related article: AP4CA sues EnergyAustralia for greenwashing
It is also the first Australian court case brought against a company for “carbon neutral” marketing and follows a decision by lawmakers in the European Parliament to ban this conduct overseas.
Equity Generation Lawyers represents Parents for Climate in a landmark action challenging allegedly misleading statements made by EnergyAustralia about its “carbon neutral” energy products.
EnergyAustralia offers “Go Neutral Electricity” and “Go Neutral Gas” products. “Go Neutral” customers purchase energy mainly sourced from burning fossil fuels, and EnergyAustralia promises to purchase carbon credits to “offset” the associated emissions. The “Go Neutral” products require consumers to opt-in but there is no additional cost to the consumer.
Parents for Climate argues that EnergyAustralia’s marketing of its “Go Neutral” products amounts to misleading or deceptive conduct contrary to section 18 of the Australian Consumer Law.
Parents for Climate argues that carbon offsets do not “cancel out” or “neutralise” the emissions generated by “Go Neutral” energy, and that using “Go Neutral” energy does not have a positive impact on the environment.
EnergyAustralia denies that it made the alleged representations on its website and denies that the representations were misleading or deceptive (if they were made). It also says that the statements in its website would have been understood as expressions of EnergyAustralia’s opinion rather than as statements of fact.
Related article: ACCC slaps first ‘greenwashing’ fine on energy firm
Parents for Climate is seeking a declaration that EnergyAustralia has misled its customers since 2019 about the greenhouse gas emissions associated with their electricity and gas usage.
The complainant is also seeking an order that EnergyAustralia be restrained from making “carbon neutral” or similar statements to describe the “Go Neutral” product, and that it issue a corrective statement to its customers.
