Energy Firm’s Advertisement Banned for Misleading Claims
A recent advert by French oil and gas giant TotalEnergies has been prohibited in the UK due to misleading consumers about the firm’s environmental impact. The Advertising Standards Authority (ASA) ruled that the advert, which focused on TotalEnergies’ renewable wind energy projects, failed to mention that the majority of its operations are still based on fossil fuels. Despite TotalEnergies stating that they could not include more information about their business practices due to constraints in the ad medium, the ASA found the advert to be misleading as it did not accurately represent the company’s overall business activities, which predominantly involve petroleum and gas products.
According to the TotalEnergies’ Sustainability and Climate 2024 report, 90% of its sales in 2023 were derived from petroleum and gas products. Moreover, the company was responsible for 1.5% of global oil production, allocating 68.3% of its capital expenditure to fossil fuel energies and 31.7% to lower-carbon activities. The ASA highlighted that the advert did not disclose the proportion of TotalEnergies’ business model dedicated to lower-carbon energy products, leading to potential consumer deception.
In a related ruling, the ASA did not uphold 76 complaints concerning an advert for Shell that allegedly misrepresented its environmental impact. The TV ad in question featured various aspects of Shell’s investments in fossil fuels and lower carbon technologies, providing clarity on the company’s focus areas. Despite complaints from Adfree Cities, the ASA concluded that the advertisement did not inaccurately portray Shell’s environmental stance.
The ASA’s decisions are part of its ongoing Climate Change and Environment project, aiming to scrutinise green claims made in advertising. However, Adfree Cities criticised the ASA for not banning the Shell advert, accusing the regulator of endorsing ‘greenwash.’ Veronica Wignall, co-director at Adfree Cities, expressed concern that portraying Shell as environmentally conscious while expanding fossil fuel operations misleads consumers and impedes the transition to clean energy.
The ASA’s stringent stance on environmental advertising reflects a growing trend towards accountability and transparency in the energy sector. It underscores the importance of accurate representation and clear communication in sustainability messaging to ensure consumers are well-informed and not misled by misleading claims.
This regulatory intervention serves as a reminder for companies to align their advertising with their actual environmental practices and contributions. In an era where sustainability and climate action are paramount, businesses must uphold integrity in their communications to build trust with consumers and support genuine efforts towards a greener future.
The ASA’s actions emphasise the need for responsible marketing practices within the energy industry and signal a shift towards greater scrutiny of environmental claims in advertising. By holding companies accountable for their messaging, regulators play a crucial role in promoting transparency and authenticity in sustainability communications, ultimately driving positive change towards a more sustainable and environmentally conscious business landscape.