EnergyAustralia, a subsidiary of CLP Holdings Ltd. and one of Australia’s largest energy providers, has apologised for the way it marketed its carbon offsetting products, following legal action from advocacy group Parents for Climate.
The apology was part of a settlement after Parents for Climate launched proceedings in mid-2023, alleging that the company’s ‘Go Neutral’ campaign misled customers about the environmental impact of its carbon offsetting initiatives. As part of the resolution, EnergyAustralia acknowledged that carbon offsets do not negate the damage caused by fossil fuel emissions.
“Even with carbon offsetting, the emissions released from burning fossil fuels for a customer’s energy use still contribute to climate change,” the company said in a statement.
The case comes amid growing scepticism around the credibility of carbon credits, which are widely used by Australian firms to compensate for their greenhouse gas emissions. Critics argue that the lack of global regulation and doubts over the effectiveness of some projects have undermined their environmental value.
Several Australian firms have recently withdrawn from the Climate Active scheme—a federal government programme allowing companies to claim carbon neutrality through the purchase and reporting of offsets—citing concerns over credibility and transparency.
EnergyAustralia, which operates coal-fired power stations at Yallourn in Victoria and Mt. Piper in New South Wales, has signalled plans to install large-scale battery storage at both sites. The move reflects a broader shift in Australia’s energy sector away from coal and towards cleaner technologies.
The apology also comes amid heightened regulatory scrutiny of environmental, social and governance (ESG) claims in Australia. Authorities have recently imposed penalties on financial firms including Active Super, Mercer Superannuation Australia, and Vanguard Investments Australia for allegedly misleading ESG-related statements.
