LCANZI, Consumer NZ and ELI file NZ's first greenwashing case against Z Energy
LCANZI, Consumer NZ, the Environmental Law Initiative (ELI) and are seeking declarations from the High Court that Z Energy has breached the Fair Trading Act by misleading New Zealanders with its public messaging.
What is greenwashing and why does it matter?
This is the first greenwashing case to be brought before NZ courts.
Greenwashing is one of the most important and rapidly developing areas of international climate law. It occurs where a company uses advertising and public messaging to appear more climate friendly and environmentally sustainable than it really is.
LCANZI’s Original Complaint against Z Energy
In August 2022, LCANZI made a complaint to the Commerce Commission against Z’s Moving with the Times advertising campaign.
Z Energy claimed it was “getting out of the petrol business”, citing its biofuel manufacturing plant, roll out of electric vehicle chargers in petrol stations and move into electricity retailing as examples.
At the time of filing the complaint, then LCANZI president, Jenny Cooper KC, said the campaign was “misleading and irresponsible”, saying: “Despite what its advertising claims, Z Energy has told investors that it isn’t meeting its carbon reduction targets as quickly as it would like to, and it doesn’t plan to reduce fuel sales in the next decade or forecast them to fall either. It also openly tells investors that it plans to ‘optimise its core business’ - which of course, is selling fuel."
The crux of our complaint was whether Z Energy was putting on a climate friendly face to the public while telling investors of the risk to shareholder value by ‘rushing into climate action’ with the preference being to keep its options open for as long as ‘reasonably possible’.
The Commerce Commission acknowledged the issues in the complaint but declined to investigate.
What is this case about?
We are seriously concerned that Z Energy has made numerous public claims which create the impression it is making bold changes to significantly reduce its emissions and is urgently mitigating its contribution to the climate crisis. In reality this is not the case at all.
Z Energy is the second largest greenhouse gas emitter in New Zealand and is accountable for more than 10% of the country’s emissions.
Last year, Z Energy’s advertising featured slogans including, “we’re in the business of getting out of the petrol business”, and Z is “well on track to achieving [its] carbon reduction targets”.
In reality, Z Energy’s fossil-fuel sales and carbon emissions are increasing.
Together with Consumer NZ and ELI, our case alleges that through various advertising campaigns and public statements Z Energy has created the impression it is taking urgent action to counter the climate crisis. These claims include that Z
• Is reducing its carbon emissions
• Is getting out of the petrol business
• Has built a biofuel plant
• Is rapidly expanding its electric vehicle (EV) charging network
We are concerned that Z Energy’s actions aren’t matching its climate-friendly rhetoric. Z’s advertising suggests to New Zealanders that it is substantially reducing its total emissions, but the actions it has taken to date are nowhere near enough to keep us on track to limit warming to 1.5 degrees.
We want the High Court to consider whether Z Energy’s messaging to the public has been misleading. We believe, even though its stated intent may be to ‘get out of the petrol business’, so far, its actions do not live up to that intent.
While we are supportive and encouraging of Z Energy’s positive aspirations, it needs to be able to substantiate the claims it makes, and not make misleading or deceptive claims.
Why are we bringing this case?
The Commerce Commission has been vocal about greenwashing being a priority. To date, those efforts have been dedicated to educating sectors about how to avoid greenwashing.
We believe the time has come to hold our major emitters accountable for the statements they make to the public. We also think that it is important to test and clarify the law on greenwashing in NZ.
You can read our Statement of Claim in the proceedings here