Energy company issues apology for misleading more than 400,000 customers with marketing tactic: 'Historic acknowledgement'

A major Australian energy company has taken a rare step: telling the truth.

EnergyAustralia, one of the country's biggest power providers, has issued a public apology and agreed to a legal settlement after more than 400,000 customers were misled by its Go Neutral carbon offset program, The Guardian reported.

The program, launched in 2016, claimed to cancel out the climate impact of electricity and gas usage through the purchase of international carbon offsets, but a 2023 lawsuit filed by the advocacy group Parents for Climate challenged those claims as greenwashing.

Before the case went to trial, EnergyAustralia acknowledged that offsets are "not the most effective way to assist customers to reduce their emissions" and admitted its marketing may have led people to believe their energy use was climate-neutral. "Offsets do not prevent or undo the harms caused by burning fossil fuels," the company said.

This admission, the first of its kind by a major Australian energy company, marks a turning point in corporate accountability and climate action. Parents for Climate called it a "historic acknowledgment" and a "huge step forward" for the company's 1.6 million customers, many of whom believed they were making a responsible choice for the planet.

The core issue is that carbon offsets were sold as a way to ignore consumption and pollution, under the belief that the company would reduce emissions for its customers. While carbon offsets can play a role in reaching net zero pollution, they must complement local climate policies that cut emissions directly, not substitute them.

What does this mean for you? Companies should be wary about misrepresenting their environmental efforts since corporations are being held accountable for their significant role in contributing to the warming climate and making life harder and more expensive for individuals.

Business should take note and step up efforts to cut pollution and protect the planet's future.

With fossil fuel investments increasingly underperforming compared to clean energy alternatives, the logic for a low-carbon future is now rooted in both economics and ethics.

"Greenwashing isn't harmless," said Nic Seton, Parents for Climate CEO. "It's costing families money, delaying climate action, and eroding trust."

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Seton called the statement "a powerful message that the era of unchecked greenwashing is over."

Though the Go Neutral program ended in 2024, the case could set a precedent for global brands. As clean energy businesses drive innovation and job growth, actions including this one show that honesty is good for both the planet and business.

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