Source: Consumer NZ

Z Energy has apologised for any confusion caused by aspects of its advertising campaign, which claimed it was moving with the times and in the business of getting out of the petrol business.

In November 2023, Consumer NZ, Lawyers for Climate Action New Zealand, and the Environmental Law Initiative (the plaintiffs) sought High Court declarations that Z Energy had misled New Zealanders with its public messaging in an advertising campaign.  

The parties have now mutually agreed to settle the case.

“We maintain Z Energy’s ‘Moving with the Times’ advertising campaign was misleading,” said Jon Duffy, chief executive of Consumer NZ.

“Our goal in taking this case was to hold Z Energy accountable. Today’s public apology by Z Energy, which is featured in newspapers across the country, shows that we have achieved that.”  

Although Z Energy’s campaign said the company was in the business of getting out of the petrol business, it wasn’t actually intending to get out of the petrol business. Or at least not any time soon.  

“We are pleased to have reached the point where Z Energy has accepted it should apologise for any confusion caused by aspects of its advertising campaign,” said Duffy.

The agreement to settle did not include any payment to the plaintiffs. The plaintiffs acknowledge that Z Energy does not consider its actions to be greenwashing, or to involve misleading and deceptive conduct, and has not admitted any liability.  

Even so, Duffy said, “We continue to believe this was one of the worst examples of greenwashing in New Zealand’s history. Our settlement allows for us to agree to disagree with Z Energy on that.”

Consumer defines greenwashing as a sneaky marketing tactic that makes a shopper think something is ‘green’ or more environmentally friendly than it really is.

“In this case, three small not-for-profits joined forces to call out a big corporate entity for greenwashing,” said Jessica Palairet, executive director at Lawyers for Climate Action New Zealand.

“While the government and regulators are currently missing in action, we have shown that we are not afraid to step in to fill that gap. This case sends a clear message to other major businesses: if you cross or sail close to the line on green claims, you run the risk of being very publicly held to account, and spending significant sums of money to defend yourself in legal proceedings.”

In a statement issued today by all parties, Z Energy has agreed with the plaintiffs that greenwashing is a prevalent problem in New Zealand, and that it has been subject to limited enforcement action. Z Energy and the plaintiffs have acknowledged the importance for businesses to communicate accurately to consumers.

Z Energy has acknowledged that petrol and fossil fuels are a leading contributor to climate change, and that transport emissions, including from the fuel Z Energy sells, are a big part of New Zealand’s emissions.

Z Energy agrees with the plaintiffs that the government has a crucial role in facilitating the energy transition in New Zealand, particularly in relation to the transport sector.

“Having one of New Zealand’s largest emitters join our call for the government to step up and better support climate action is extraordinary. We need a robust plan to transition away from fossil fuels, and Z Energy agrees with our stance that the government needs to step up to make this happen,” said Palairet.

“Collectively we are calling for bipartisan policies and strategies to achieve our climate targets, so businesses and consumers can navigate the transition confidently,” said Dr Matt Hall, director of legal and research at Environmental Law Initiative.  

The plaintiffs are pleased by Z Energy’s acknowledgement that consumers currently find it hard to verify green claims, and that businesses must be truthful for markets to be successful.

“We will continue to monitor the claims of major polluters, including Z Energy, to ensure they are meeting this standard,” said Hall.

“The wave of accountability is spreading. Z Energy’s apology follows an apology from Energy Australia in the settlement of a greenwashing case brought by Australian Parents for Climate Action, and comes at the same time as a landmark ruling in France against TotalEnergies’ greenwashing advertising. Outcomes like this show that the pressure is working.

“Ultimately, the only way to prevent consumers from being misled by any aspect of fossil fuel advertising is to completely ban it,” said Hall.

About Consumer, LCANZI and ELI

Consumer NZ is an independent, non-profit organisation dedicated to championing and empowering consumers in Aotearoa. Consumer NZ has a reputation for being fair, impartial and providing comprehensive consumer information and advice.

Help fund more research, investigations, and campaign work like this. Join at consumer.org.nz.

Environmental Law Initiative (ELI) is a New Zealand registered charity. ELI uses litigation, advocacy and education to protect Aotearoa’s environment.

Read about existing cases at eli.org.nz.

Lawyers for Climate Action NZ Inc (LCANZI) is a non-profit collective of lawyers who use the law to ensure more effective action against climate change. LCANZI’s members are barristers, solicitors, legal academics and students from across Aotearoa New Zealand.

LCANZI brings strategic climate litigation, and advocates for legislation and policies to ensure Aotearoa meets or exceeds its commitment to achieve net-zero carbon emissions as soon as possible and no later than 2050. Find out more about LCANZI.

MIL OSI