Read The Times Australia

Daily Bulletin

Greenwashing claims on trial: should NZ ban fossil fuel advertising?

  • Written by: Matthew Hall, Visiting Scholar, Faculty of Law, Te Herenga Waka — Victoria University of Wellington

According to independent watchdog Consumer NZ, New Zealand is “rife with greenwashing”, with many companies positioning themselves as “sustainable”. No doubt you’ll have seen such claims on the products in your weekly shopping basket.

The practice is coming under increasing scrutiny, in New Zealand and around the world, due to concerns that it denies meaningful consumer choice. Studies show brands advertising their sustainability perform better, but consumers can’t be expected to research every claim.

Overseas, legislative moves are being made to tackle greenwashing. The European Parliament, for example, has just approved a directive that will ban baseless marketing claims such as “environmentally friendly”.

The directive will also cover “claims that a product has a neutral, reduced or positive impact on the environment because of emissions offsetting schemes”. This will be particularly challenging for fossil fuel energy companies and other large polluters as they attempt to claim carbon neutrality through offset schemes.

Consumer NZ and others (including the Environmental Law Initiative where I also work), are currently seeking a High Court declaration that Z Energy has breached the Fair Trading Act with its advertising, including the claim it is “in the business of getting out of the petrol business”.

Z Energy has responded by saying its own transparency over emissions reporting makes it a target. The company’s CEO has been reported as saying the threat of legal action might mean big emitters “say less, do less and are less ambitious” about their attempts to meet emissions targets.

It’s the first major case in New Zealand concerning alleged climate greenwashing, and its outcome will be closely watched.

Z Energy petrol station forecourt
Consumer NZ and others are seeking a High Court declaration that the company has breached the Fair Trading Act. Getty Images

Drawing a legal line

An international consumer survey published late last year looked at perceptions of green claims. It found three out of four European respondents believed “very polluting” companies should not be allowed to use any green claims at all.

Close to 40% of respondents in Europe thought fossil fuel companies should not be allowed to do any advertising. Results were “broadly similar” for New Zealand respondents (and those from other countries) to the same survey.

Behind these sentiments is a simple logic. If advertising drives consumption, and consumption of fossil fuels is driving climate change, then ending the promotion of fossil fuels is part of the solution. There are obvious parallels with the restriction of tobacco advertising.

Read more: Greenwashing: energy companies make false claims about sustainability – they should be held to account

In practice, however, there are significant challenges to defining the scope of any such laws. We all use fossil fuels every day, not only to run vehicles, but by our reliance on products in which the burning of oil, coal and gas is embedded, including their supply chains.

Where would we draw the line? An ambitious private members bill recently tabled in the Canadian parliament tries to answer that question. It reads:

It is prohibited for a person to promote a fossil fuel, a fossil fuel-related brand element, or the production of a fossil fuel, except as authorized by the provisions of this Act or of the regulations.

“Promotion” in this bill is defined as:

a representation about a product or service by any means […] that is likely to influence and shape attitudes, beliefs and behaviours about the product or service.

This is potentially much larger in scope than some existing European bans on the advertising of specific industries, such as France’s ban on the advertising of fossil fuel energy products. This has been criticised by Greenpeace for still allowing certain types of advertising, including sporting event sponsorship.

Read more: Greenwashing: how ads get you to think brands are greener than they are – and how to avoid falling for it

Increasing climate litigation risk

Because each country’s emissions profile is different, it might be most feasible to focus legislation on the most polluting companies or sectors, including carbon-intensive sectors that are still growing.

In New Zealand, that would mean limitations on the advertising of fossil fuel-intensive agricultural products and private transport (including non-electric cars and aviation). Or it might simply mean prohibitions on advertising by the largest emitters.

Read more: The NZ ad industry wants to clean up its climate act – but will agencies drop their fossil fuel clients?

In theory, such measures could be part of New Zealand’s second Emissions Reduction Plan, which is due this year. This will contain strategies, policies and actions for achieving the country’s second emissions budget, and contributing to global efforts to limit temperature rises to 1.5°C.

However, the current government has made it cheaper to buy petrol in Auckland, and has curtailed various public transport schemes. It seems unlikely we will see fossil fuel advertising bans in this parliamentary term, and any private member’s bill also seems destined to fail.

For all these reasons, attention is turning to the use of existing law in novel ways. As the Z Energy case suggests, New Zealand’s Fair Trading Act is likely to be increasingly used to challenge fossil fuel advertising.

The Act contains prohibitions against “misleading and deceptive conduct”, as well as “unconscionable conduct”. Neither has been properly tested in the New Zealand courts in the context of climate change.

A sticker reading 'Fossil fuels: no advertising, no sponsorship' in French
A sticker reading ‘Fossil fuels: no advertising, no sponsorship’ at a Greenpeace protest in Toulouse, France. Getty Images

Climate and the law

If consumer sentiment continues to harden, we can imagine a time when any positive advertising by a large climate polluter could be deemed to be misleading or unconscionable.

The risk for corporations is therefore increasing. As a recent report on climate litigation from global consultancy Deloitte argued:

If policymakers do not enact adequate laws and standards, and companies do not apply these quickly and forcefully, individual constituents of society will increasingly turn to the courts to protect their own interests, those of their children and descendants, as well as the planet itself.

However, at a time when rapid change is needed to address the climate crisis, driving it through the courts will be slow and incremental.

Specific legislation setting limits on fossil fuel advertising would be a far more efficient way of regulating claims by high-polluting industries. Such legislation would also provide more certainty for those industries.

Authors: Matthew Hall, Visiting Scholar, Faculty of Law, Te Herenga Waka — Victoria University of Wellington

Read more https://theconversation.com/greenwashing-claims-on-trial-should-nz-ban-fossil-fuel-advertising-219615

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How to Vet and Hire the Right Property Expert in the Australian Market

Navigating the Australian real estate market has become a highly strategic exercise. Recent nation...

Moving From Australia to Wellington: The Practical Settling-In Checklist

Wellington has a lot going for it. It's compact, walkable and full of cafes, with a harbour that r...

How to Match Replacement Roof Tiles on an Older Home

Renovating or repairing an existing roof comes with quite a few headaches, and matching the old roof...

Sydney Academy Partnership Targets Talent Development for Travel and Hospitality

VFS Global Academy’s Australian expansion will focus on practical skills and career development thro...

How Strategic Corporate Gifting Boosts Client Retention and Team Morale

As the calendar pushes towards the end of the year, business leaders across Australia begin evalua...

The Importance of Reliable Plumbing Services During Home Renovations

A freshly renovated bathroom can make an ordinary Monday morning feel a little more inviting. The ne...

Backyard Living Options for Campbelltown Homes: What Works Best?

You know that feeling at the end of a long, busy week when all you want is a calm spot outdoors, whe...

Smart Wardrobe Storage Ideas for Small Sydney Apartments and Bedrooms

A well-designed wardrobe is one of the most useful things a home can have. It's meant to keep clothe...

Colorbond Fencing in Australia: Costs, Colours, Rules and What Actually Lasts

Drive through almost any Australian suburb built in the last thirty years and you are looking at the...