Complaint over Shell’s net zero by 2050 claims
COURT OR TRIBUNAL
Ad Standards
DATE FILED (OR FIRST HEARING DATE)
24/11/2022
LITIGATION TYPE
Corporate Accountability
SUBJECT MATTER
Misleading and deceptive conduct
REVIEW TYPE
Merits review
SUMMARY
Comms Declare lodged a complaint to Ad Standards alleging that Shell's representations around its plan to reach net zero by 2050 were greenwashing. They argued that Shell's representations “are seeking to capitalise on consumer preferences for climate friendly and renewable products when Shell has no intention of significantly altering its business plans as a fossil fuel company”. The complaint alleged that representations made on Shell's website breached the Environmental Claims Code specifically s 1 for misleading or deceptive conduct in relation to environmental claims and s 2 that environmental claims must not overstate their benefit to the environment.
The Panel dismissed the complaint. They held that claims made were in reference to goals set in Shell's corporate strategy and would not mislead an average consumer to think that Shell was close to meeting these targets. In addition, sufficient detail was provided in the advertisements. Finally, the environmental claims were sufficiently specific as to their environmental impact and excluded areas of Shell's business.
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