EnergyAustralia is offering an unprecedented public apology to its customers. This follows a legal settlement over claims of greenwashing related to its Go Neutral program. Join us in congratulating the company on their exciting new plans! It will now invest in directly reducing emissions rather than providing carbon offsets, taking a clear stand for environmental stewardship.
The Go Neutral program began in 2016. It has given them the opportunity to let their customers offset their carbon emissions by funding renewable projects through their service. Unfortunately, EnergyAustralia pulled this program in mid-2022. Now, they are slowly moving to eliminate it completely for their residential customers in 2023. The ruling comes as scrutiny is mounting over the integrity of the rapidly growing carbon offset market. People are starting to wonder if these programs even help reduce emissions.
Impact of Greenwashing on Climate Action
Nic Seton, CEO of Parents for Climate, zoomed in on the negative effect of greenwashing on real climate action. According to him, these kinds of deceptive marketing tactics can stall urgent progress needed to combat climate change.
“Greenwashing isn’t harmless. It’s costing families money, delaying climate action, and eroding trust.” – Nic Seton
Parents for Climate requested EnergyAustralia provide a corrective notice. They further asked the court to formally recognize that the company committed acts of greenwashing. Seton hailed the settlement as a “historic acknowledgment.” He continued, calling it a wakeup call on the need for bold substantive climate action—not mere marketing gimmicks.
“It will set a new standard for the way carbon offset products are used by corporations and sold to consumers.” – Nic Seton
The Federal Court was scheduled to hear the FHWA case this month. The settlement has already made moot much of what Parents for Climate passionately called for.
Acknowledgment of Public Concerns
EnergyAustralia’s chief customer officer, Kate Gibson, told the ABC that there was increasing public mistrust about carbon offset schemes. She stated that many have questioned their benefits in recent years and recognized the legitimate public concern surrounding these initiatives.
“Carbon offsets should not be used to delay or diminish the important work that needs to be done to actively decarbonise.” – Kate Gibson
Gibson mentioned her concern that offsets should only fund projects that result in measurable, verifiable reductions in greenhouse gas emissions. He pointed out the fact that they can’t undo the harm we’ve done with burning fossil fuels.
“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.” – EnergyAustralia’s statement
The company further apologized for any misunderstanding created by its promotion of the Go Neutral program.
“EnergyAustralia apologises to any customer who felt that the way it marketed its Go Neutral products was unclear.” – EnergyAustralia’s statement
Moving Towards Direct Emissions Reductions
EnergyAustralia is committed to more effective methods for helping its customers directly reduce their energy-related emissions. The company explained that it was time for them to double down on tactics that truly make a difference in lowering carbon footprints.
“EnergyAustralia is now focused on more effective ways of helping its customers to directly reduce the emissions associated with their energy use.” – Kate Gibson
This move is more than a simple mandate. It’s a meaningful step towards addressing customer demands and larger climate justice issues. These days, companies are facing increased scrutiny for deceptive or misleading environmental claims. EnergyAustralia’s move might create an equally inspiring precedent for corporate responsibility surrounding sustainability efforts.
