Media Release
EnergyAustralia, Australia's third largest carbon polluter, has taken its “carbon neutral” product off the shelf for new customers in the latest major corporate move away from marketing products with carbon offsetting. EnergyAustralia joins a wave of Australian companies, including Telstra, Australia Post, JCDecaux and PWC that are ditching “carbon neutral” claims.
EnergyAustralia has ceased the sale of its Go Neutral energy product to new customers, while continuing to grandfather the scheme for existing customers.
Parents for Climate, represented by Equity Generation Lawyers, is suing EnergyAustralia in the Federal Court of Australia for misleading over 400,000 consumers about the climate impact of its products. The hearing is scheduled for May 2025.
Parents for Climate alleges that EnergyAustralia continues to mislead customers by marketing its Go Neutral product as “carbon neutral” and having “a positive impact on the environment” when it is primarily generated by burning fossil fuels, which the company claims to have “offset” simply by buying carbon credits.
This will be the first Australian civil action brought against a company for marketing a consumer product as “carbon neutral” and follows recent declarations by lawmakers in the European Parliament to ban this act overseas.
Nic Seton, CEO for Parents for Climate, said, “The jig is up and companies are ditching misleading and deceptive carbon neutral claims to save their reputations. This is a win for mum and dad consumers who rely on energy companies to tell the truth - and it’s good news for our kids who need genuine climate action not clever marketing tricks.
“Companies are getting wise to the risks of greenwashing thanks to increased public scrutiny. Misleading “carbon neutral” language is dying out, while companies like Telstra, Australia Post, JCDecaux and PWC are increasing commitment to direct emissions reductions. This is great news for integrity and for a safer climate for the next generation. Parents for Climate is calling on EnergyAustralia to do the same and ditch greenwashing for direct pollution reduction.”
All four companies have used ClimateActive certification, a voluntary scheme that is long past the original “early 2024” deadline for review from the Albanese Government. Companies are not waiting for the government to set the new standard - they are acting on the increased risk from scrutiny being applied by groups like Parents for Climate.