Corporate regulator ASIC has confirmed it is investigating a complaint by Comms Declare, an industry body representing hundreds of workers in advertising, media, PR and marketing, against Shell for alleged greenwashing (unsubstantiated claims of environmental sustainability).
Comms Declare, represented by the Environmental Defenders Office (EDO), formally complained that Shell Australia may have breached sections of the federal Australian Consumer Law by giving investors and consumers the false impression that the company has a plan to be net-zero by 2050.
Comms Declare Founder, Belinda Noble said:“Vague and meaningless net zero fantasies are being cynically deployed by fossil fuels companies to buy social licence in spite of global warming.
"Regulators need to ensure that consumers are protected from these disingenuous marketing tactics.”
In responding to the complaints ASIC wrote: “Thank you for bringing this matter to ASIC's attention. We have now referred the issues you have raised to a specialist team within ASIC for further consideration.
"Please note, however, that ASIC does not comment on operational matters. We may comment publicly on investigations and enforcement actions if it is the public interest to do so.”
Greenwashing is one of ASIC’s 2023 priorities and it has recently launched court proceedings against Mercer and fined Tlou Energy Limited, Vanguard Investments Australia, Diversa Trustees Limited and Black Mountain Energy.
A complaint to Ad Standards’ claiming breaches of the voluntary Environmental Claims Code was dismissed, saying the net zero claims were not misleading or deceptive because they were too vague and were mentioned in Shell’s corporate strategy.
Ad Standards is currently reviewing its code.
Competition watchdog the Australian Competition and Consumer Commission (ACCC) is cracking down on greenwashing.
The ACCC says it is hearing growing concerns that some businesses are falsely promoting environmental or green credentials to capitalise on changing consumer preferences.
"Advertising is a powerful tool in influencing consumers’ perceptions and purchasing decisions," says Delia Rickard, the ACCC's deputy chair.
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