{"id":12855,"date":"2023-06-07T10:02:18","date_gmt":"2023-06-07T10:02:18","guid":{"rendered":"https:\/\/www.esgtoday.com\/?p=12855"},"modified":"2023-06-09T08:41:47","modified_gmt":"2023-06-09T08:41:47","slug":"uk-bans-shell-petronas-repsol-ads-in-greenwashing-crackdown","status":"publish","type":"post","link":"https:\/\/www.esgtoday.com\/uk-bans-shell-petronas-repsol-ads-in-greenwashing-crackdown\/","title":{"rendered":"UK Bans Shell, Petronas, Repsol Ads in Greenwashing Crackdown"},"content":{"rendered":"<!--themify_builder_content-->\n<div id=\"themify_builder_content-12855\" data-postid=\"12855\" class=\"themify_builder_content themify_builder_content-12855 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n\n\n<p>UK ad regulator the Advertising Standards Authority (ASA) issued a series of rulings on Wednesday banning several ads from major energy companies Shell, Petronas and Repsol highlighting the companies\u2019 clean energy initiatives, with findings that the ads would likely to mislead consumers on the companies\u2019 or their products overall environmental impact.<\/p>\n\n\n\n<p>The ads included a poster, a TV ad, and a YouTube ad for Shell, a TV ad for Petronas, and an online display ad for Repsol. Shell\u2019s ads included claims that 78,000 homes in the UK Southwest and 1.4 million UK households use 100% renewable electricity from Shell or Shell Energy, with taglines such as \u201cThe UK is READY for Cleaner Energy,\u201d the Repsol ad said that the company \u201cdeveloping biofuels and synthetic fuels to achieve net zero emissions,\u201d while Petronas\u2019 ad stated that the company \u201cstarted connecting the dots, to become a progressive energy and solutions partner,\u201d after acknowledging that it had become part of \u201cnature\u2019s problem,\u201d and included text on screen reading \u201cNet Zero 2050.\u201d<\/p>\n\n\n\n<p>In each case, the ASA ruled that the ads breached codes regarding misleading advertising and environmental claims and must not appear again in their current forms. For example, while Shell argued that the ads were intended to raise awareness of and increase demand for its lower emissions products and that consumers already associated the company with sales of fossil fuel products, the ASA ruling said that the ads \u201cgave the overall impression that a significant proportion of Shell\u2019s business comprised lower-carbon energy products, further information about the proportion of Shell\u2019s overall business model that comprised lower-carbon energy products was material information that should have been included.\u201d<\/p>\n\n\n\n<p>The ASA added:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>\u201cBecause the ads did not include such information, we concluded that they omitted material information and were likely to mislead.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>Similarly, the regulator said that the Petronas ad omitted material information on the extent of the company\u2019s continuing contribution to greenhouse gas emissions, while the Repsol ad\u2019s claim that \u201cwe are developing biofuels and synthetic fuels to achieve net zero emissions\u201d lacked context that the fuels would not achieve net zero emissions as a single measure.<\/p>\n\n\n\n<p>Following the release of the rulings, ASA Director of Communications Donna Castle said:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>\u201cToday were publishing three important rulings about \u2018green\u2019 or environmental claims. We\u2019ve upheld complaints against Shell, Petronas, and Repsol, for running ads or ad campaigns that made misleading claims about reducing their carbon emissions or promoting green energy.\u201d<\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">As part of a wider piece of work on environmental claims in the Energy sector, today we published three rulings on well-known energy companies that made misleading claims about reducing their carbon emissions or promoting green energy. <a href=\"https:\/\/t.co\/dbGYsX8oPm\">https:\/\/t.co\/dbGYsX8oPm<\/a> <a href=\"https:\/\/t.co\/HSEid8cA34\">pic.twitter.com\/HSEid8cA34<\/a><\/p>&mdash; ASA (@ASA_UK) <a href=\"https:\/\/twitter.com\/ASA_UK\/status\/1666363500665479169?ref_src=twsrc%5Etfw\">June 7, 2023<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The regulator did not uphold challenges to Shell\u2019s claim about providing renewable electricity to homes, as Shell had substantiated the claims.<\/p>\n\n\n\n<p>The rulings come as the regulator has increased its focus lately on environmental claims made in ads. Earlier this year, the <a href=\"https:\/\/www.esgtoday.com\/advertising-watchdog-says-lufthansa-ad-gave-misleading-environmental-claims\/\">ASA ruled that an ad campaign by Lufthansa<\/a> gave a misleading impression of the company\u2019s environmental impact, and last year, the&nbsp;<a href=\"https:\/\/www.esgtoday.com\/regulator-bans-hsbc-ads-highlighting-green-activities-as-misleading\/\">ASA ruled that ads by HSBC<\/a>&nbsp;highlighting the bank\u2019s climate-focused actions were misleading, as they omitted information about HSBC\u2019s continued financing activities for emissions-intensive industries and businesses. Earlier this year, the&nbsp;<a href=\"https:\/\/www.esgtoday.com\/regulator-unveils-new-rules-for-advertising-carbon-neutral-and-net-zero-claims\/\">ASA released guidance<\/a>&nbsp;for advertisers making environmental sustainability claims to consumers, and said that it will be taking action to address \u201centirely unqualified\u201d claims of carbon neutrality or net zero.<\/p>\n\n\n\n<p>In a statement provided to ESG Today, a Shell spokesperson said that the company strongly disagreed with the decision, adding that it \u201ccould slow the UK\u2019s drive towards renewable energy,\u201d and that the company was \u201cconcerned by this short-sighted decision.\u201d<\/p>\n\n\n\n<p>The spokesperson said:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>\u201cPeople are already well aware that Shell produces the oil and gas they depend on today. When customers fill up at our petrol stations across the UK, it\u2019s under the instantly recognisable Shell logo.<\/p>\n\n\n\n<p>\u201cBut what many people don\u2019t know is we\u2019re also investing heavily in low- and zero-carbon energy, including building one of the UK\u2019s largest public networks of EV charge points. No energy transition can be successful if people are not aware of the alternatives available to them.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>Adfree Cities brought the challenges against Shell and Repsol. Following the release of the rulings, Veronica Wignall, co-director of Adfree Cities, said:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>\u201cThe world\u2019s biggest polluters will not be permitted to advertise that they are \u2018green\u2019 while they build new pipelines, refineries and rigs \u2013 but this doesn\u2019t go far enough. Shell and other fossil fuel expanders should not be permitted to advertise at all, given their historic and ongoing role in wrecking the planet.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p><em>Update:<\/em><\/p>\n\n\n\n<p>Following the publication of our article, ESG Today received statements from spokespeople at Petronas and Repsol. The statements can be found below:<\/p>\n\n\n\n<p>Petronas said:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<blockquote class=\"wp-block-quote\">\n<blockquote class=\"wp-block-quote\">\n<p>PETRONAS disagrees that the advertisement is misleading and overstated. PETRONAS is currently undertaking sustainability efforts including in respect of its existing energy business, towards a cleaner energy future.<\/p>\n\n\n\n<p>PETRONAS remains committed towards its lower-carbon ambitions spelt out in its Net Zero Carbon Emissions by 2050 (NZCE50) Pathway. These efforts align with its role as Malaysia\u2019s national oil company to add value to the country\u2019s hydrocarbon resources and support economic value creation with a reliable supply of energy, while paving the way to a lower-carbon future in a just and sustainable manner.<\/p>\n<\/blockquote>\n<\/blockquote>\n<\/blockquote>\n\n\n\n<p>Repsol:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>We respectfully disagree with the ruling. Renewable fuels are a crucial contributing solution to decarbonizing the transport sector, and we remain committed to its large-scale development and rollout for an effective and just energy transition.<\/p>\n\n\n\n<p>The European Union\u2019s own Fit for 55 targets contemplate that transport demand in Spain in 2050 will be more than 60% comprised of biofuels and synthetic fuels versus 25% electricity. Electrification is simply not enough to decarbonize transport.<\/p>\n\n\n\n<p>Renewable fuels are already reducing transport emissions. Today, more than 10% of the fuel sold at service stations in Spain is renewable fuel. In 2022, this allowed for savings in emissions equivalent to the life-cycle savings of 3 million electric vehicles, which are not expected on the roads until the end of the current decade.<\/p>\n\n\n\n<p>Repsol will spend 1.8 billion euros &#8211; or almost 35% of organic capex &#8211; on low-carbon businesses in 2023, including renewable fuels, renewable power generation, and circular economy projects. The company is leading its industry with an allocation of about a third of its total investment to low-carbon businesses for the duration of its 2021-2025 Strategic Plan.<\/p>\n\n\n\n<p>Repsol has led decarbonization efforts in its industry for more than a decade. We linked pay to emissions reductions in 2012 and were the first company in the industry to set a net zero target in 2019.<\/p>\n<\/blockquote><span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>UK ad regulator the Advertising Standards Authority (ASA) issued a series of rulings on Wednesday banning several ads from major energy companies Shell, Petronas and Repsol highlighting the companies\u2019 clean energy initiatives, with findings that the ads would likely to mislead consumers on the companies\u2019 or their products overall environmental impact. The ads included a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":12856,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[6,17],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>UK Bans Shell, Petronas, Repsol Ads in Greenwashing Crackdown - ESG Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esgtoday.com\/uk-bans-shell-petronas-repsol-ads-in-greenwashing-crackdown\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UK Bans Shell, Petronas, Repsol Ads in Greenwashing Crackdown - ESG Today\" \/>\n<meta property=\"og:description\" content=\"UK ad regulator the Advertising Standards Authority (ASA) issued a series of rulings on Wednesday banning several ads from major energy companies Shell, Petronas and Repsol highlighting the companies\u2019 clean energy initiatives, with findings that the ads would likely to mislead consumers on the companies\u2019 or their products overall environmental impact. 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Prior to founding ESG Today, Mark worked at Delaney Capital Management (DCM) in Toronto, Canada, most recently as the firm\u2019s head of U.S. equities. While at DCM, Mark was part of the firm\u2019s ESG team, responsible for evaluating and tracking the sustainability factors impacting portfolio companies, and assessing the suitability of companies for portfolio inclusion. Mark also spent several years in the sell-side research industry, covering the technology and services sectors. 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