Misuse of environmental claims growing with parents demanding greater accountability, fines and regulation

Australian parents are taking a stand against greenwashing, cancelling their household service providers, and demanding greater accountability as concern grows over the escalating misuse of misleading environmental claims by businesses. 

As we approach the federal election, Parents for Climate is reminding candidates that we need to protect the globe for all current and future generations and action needs to start now.  As one of Australia’s leading climate organisations, they are calling for companies offering essential household services, including energy companies, banks, and superannuation funds, to take urgent action to cut Australia’s carbon emissions to net zero as quickly as possible. 

While many businesses use the government-backed Climate Active certification to sell ‘carbon neutral’ products, they must instead focus on genuine emissions reduction. Parents for Climate is asking the Federal Government to expedite a long-delayed review of the scheme, and for businesses to prioritise genuine emissions avoidance and mitigation over offsets, which cannot deliver reliable abatement. 

Parents for Climate also calls on the ACCC to offer clear guidance to companies that offsets should only be used as a “last resort” for emissions that are unavoidable with currently available technology. Parents for Climate calls for guidance like that provided by the European Union or by the Dutch financial regulator to the effect that “offsetting” style claims should be avoided because of their tendency to mislead consumers. It is the responsibility of the government and the ACCC to act now  in the Australian public’s best interest.

A new report from Parents for Climate suggests over 5.2 million Australian parents have fallen victim to greenwashing directly from essential household service providers, including energy companies, banks, and superannuation funds. Additionally, over a third (36%) have detected companies making false claims about their environmental credentials.

The findings expose a deepening frustration and growing trend among parents, carers and families with more than half of those surveyed (59%) having already cancelled or changed providers in response to misleading sustainability claims. 

Nic Seton, CEO of Parents for Climate, says the message from parents and carers is clear: “Australian families are demanding real climate action, not empty promises. Companies that mislead customers with greenwashing are losing trust—and business. Consumers want honest, accountable, and transparent sustainability commitments, and they’re willing to switch providers to ensure their money supports genuine climate solutions.”

Rising Risk to Australian Businesses

Parents and carers are loudly vocalising their dissatisfaction, as one in three of those surveyed (27%) take their concerns directly to the company, and one quarter (24%) spread awareness of this business malpractice on social media or through news outlets.  

Within the next six months, nearly half (45%) of parents and carers plan to talk to their friends and family and warn them about the energy, banking, insurance company they are using; on top of this, a quarter (25%) plan to leave their provider when their plan is up. 

Seton adds “Parents and carers rely on honest and direct advice to make these important decisions, and they’re tired of being sold dirty products as clean. If products generate pollution that harms the climate our children are growing up in, businesses should not be able to market them to us as ‘green’ or ‘carbon neutral’. 

“We’re asking for the ACCC and Government to take the onus off parents and carers, who should not be expected to make sense of greenwashed corporate sustainability language, and ensure companies adhere to standardised guidelines when communicating environmental claims.”

​​“With nearly 70% of parents and carers considering environmental credentials when choosing service providers, the pressure is on businesses to be honest about their sustainability commitments,” Seton said. 

“Nearly all parents and carers we surveyed reported feeling misled or lied to by companies engaging in greenwashing. Companies that fail to be transparent will continue to lose customers. We are just not tolerating greenwashing anymore.”

Calls for Stricter Regulations

The vast majority (90%) of parents and carers firmly believe greenwashing from household providers is getting worse, especially in the past year, as a growing number of companies misuse environmental claims for their own benefit. 

Immediate action is required to combat this rising tide of greenwashing, with most parents and carers (87%) believing companies need to be held more accountable, and that the government needs to create stricter regulations around sustainability claims (85%).

“Parents and carers are incredibly busy but care deeply about the world they are leaving their children.  They are taking the time to speak up and this is a critical moment to listen and understand. We have an obligation to the next generation to do more and we have a window here for real action to reduce emissions, as opposed to companies relying on so-called offsets to justify their ongoing emissions. 

“Alarmingly, the federal government is legitimising unsubstantiated environmental claims through the Climate Active Scheme in which many companies use ‘offsetting’ as a substitute for meaningful climate action.  It’s high time we review the state sponsored greenwashing happening through the Climate Active program and ensure transparent plans are in place for genuine emissions reductions. 

Certification needs to be clearer so parents can trust and rely on it to make the best decisions for their households.”

Parents who want to support Parents for Climate’s work against misleading advertising can sign their open letter to power companies at https://www.parentsforclimate.org/greenwashing 

Notes to Editors:

Key Findings from Survey

The survey polled 446 parents from across Australia and found that:

• 43% have experience greenwashing from a household service (energy provider, bank, super fund)
• 36% haven’t experienced greenwashing directly themselves, but have seen companies claim to be more environmentally friendly than they are 
• 59% cancelled a service or changed company due to concerns around greenwashing
• 27% raised their concerns with the company
• 24% spread the word on social media or directly with newspapers
• Within the next six months:
  • 45% plan to talk to their friends and family and warn them about the energy, banking, insurance company they are using
  • 26% plan to leave their energy, banking, insurance provider when their plan is up
  • 18% even plan to leave their energy, banking, insurance provider before the end of their contact
• 90% of parents firmly believe greenwashing from household providers is getting worse, with 
  • 35% of this state the situation has worsened more than ever in the past year, with a growing number of companies misusing environmental claims for their own benefit
• 87% believe companies need to be held more accountable
• 85% strongly feel the government needs to create stricter regulations around sustainability claims
• 76% believe there needs to be greater fines imposed for companies
• 57% believe companies shouldn’t be able to sell the products associated with these claims
• 97% of parents feel misled or lied to, with four in five (83%) feeling extremely misled
• 68% of parents purposely look at a company’s environmental credentials and claims when signing up a household service provider (e.g. energy provider, bank, super fund.
• 29% say they also look at a company’s environmental credentials when making purchasing decisions, but see it as more of a bonus
• 77% would switch to a company that transparently and actively acted on its sustainability targets and claims

A summary of survey results can be found HERE

5.2 million figure / Australian Census: 

• There were 5.5 million (5,552,973) couple families and one million (1,068,268) lone parents.
• Total: 12,174,214 parents and carers
• 43% of 12,174,214 parents = 5,234,912 parents (5.2 million)
• Reference: https://www.abs.gov.au/statistics/people/people-and-communities/household-and-families-census/latest-release

Parents for Climate legal case against Energy Australia:

Parents for Climate is suing EnergyAustralia in the Federal Court of Australia for misleading over 400,000 consumers about the climate impact of its products. 

Parents for Climate alleges that the service provider misled customers by marketing its Go Neutral products (‘Go Neutral Electricity and Go Neutral Gas) as ‘carbon neutral’ and having ‘a positive impact on the environment’, despite the fact it is primarily generated by burning fossil fuels, which the company claims to have offset by buying carbon credits. 

Parents for Climate argues that EnergyAustralia’s marketing of its “Go Neutral” products amounts to misleading or deceptive conduct contrary to section 18 of the Australian Consumer Law. The organisation argues that carbon offsets do not eliminate the emissions generated by “Go Neutral” energy and that using “Go Neutral” energy does not have a positive impact on the environment. 

This will be the first Australian civil action brought against a company for marketing a consumer product as “carbon neutral”. The hearing is scheduled for May 2025.

About Parents for Climate:

Parents for Climate represents over 24,000 parents, grandparents and carers from Australia. We are Australia’s leading organisation for people who care about a safe future for kids and advocating for a safe climate. Our supporters come from across the political spectrum, all Australian electorates, and from a wide range of socio-economic backgrounds. We seek non-partisan responses to climate change and its impacts. 

We advocate for Australian governments and businesses to take urgent action to cut Australia’s carbon emissions to net zero as quickly as possible. We encourage Australia to demonstrate leadership on the world stage through positive and proactive domestic action and calling for other nations to take the necessary steps to protect our children’s futures. For more information, visit www.parentsforclimate.org 

Media Contact:

Ella O’Neill | 0410149003 | [email protected]