Shell energy sued for 'greenwashing'

By Al Mayadeen English
Source: News Website
7 Jun 2023 12:59

Many activists have praised the ruling as putting an end to corporates' attempts at fossil-fuel greenwashing.

Shell gas station (AFP)

Britain's Advertising Standards Authority (ASA) has issued a ban on Shell's ads that promoted environmental initiatives while remaining a major polluter itself.

Many activists have praised the ruling as putting an end to corporates' attempts at fossil-fuel greenwashing.

On their part, Shell said the decision is short-sighted and could stifle the transition towards clean energy in the UK.

The ads which advertised clean energy technology like electric car chargers and renewable electricity supply for households were assessed to be misleading because they seem to gloss over the extensive pollution which Shell causes: the ads misrepresented Shell as a low-carbon company rather than one which makes the most of its profits off of selling the fossil fuels.

"[The ads] gave the overall impression that a significant proportion of Shell’s business comprised lower-carbon energy products,” ASA said.

Despite taking initiatives to develop a transition into clean energy like building offshore wind farms and electric car chargers, Shell remains predominantly a fossil-fuel company.

Back in February, Shell directors were sued over the company's climate policy, which the plaintiffs argue is insufficient to meet climate commitments and puts the corporation in danger as the globe shifts to clean energy.

ClientEarth, an environmental law firm, has filed a lawsuit against the 11 directors in England's High Court. According to ClientEarth, this is the first action in the world trying to hold corporate executives accountable for failing to properly prepare their organization for the net zero transition.

The law firm, which owns a small stake in Shell, is suing under the UK Companies Act with the backing of a group of large pension funds and other institutional investors. It argues that a global shift to low-carbon energy is unavoidable as world governments act to end the climate problem and that Shell's refusal to change quickly enough endangers the company's prosperity and wastes the money of its investors on unnecessary fossil fuel projects.