Shell’s renewable energy arm, Shell Energy, has been criticised for greenwashing in a series of adverts that give an overblown impression of the company’s renewable energy share. Surprised? Me neither.
What was in the ads?
The ads claimed that 1.4 million homes in the UK use 100% renewable energy provided by Shell Energy. It also said the company would install 50,000 EV charging stations by 2025 and was working to bring wind power to 6 million households. It was thought by the Advertising Standards Authority (ASA) that this gave the impression that low-carbon energy products made up the majority of Shell’s business.
Why is it Greenwashing?
The ASA upheld a complaint made by Adfree Cities, an activist group who campaign against harmful advertising. A series of online and offline ads were said to mislead the public into thinking that Shell produces much more clean energy than it really does.
The ads were for Shell Energy rather than Shell but the same logo was used and the ASA deemed that the two companies were indistinguishable. The ASA worry that the adverts would lead consumers to believe that the clean energy claims related to Shell as a whole. They said…
“We did not consider that consumers would draw a distinction between “Shell” and “Shell Energy”, particularly because Shell was a brand well known for its energy products in a more general sense.”
The ASA went on to explain that Shell’s emissions were equal to 1375 million tons of CO2 in 2021, as evidenced by their own sustainability report. Oil and gas investment and extraction are now and are predicted to remain the biggest part of Shell’s business.
The fear is that someone seeing these ads would not be aware that, while they may sing the praises of clean energy, fossil fuels are Shell’s bread and butter. As a result of their findings the ASA made the decision to ban the ads.
Greenwashing or Green Transition?
Shell rebuffed the claim that the ads were greenwashing. Their statement reads…
“We strongly disagree with the ASA’s decision, which could slow the UK’s drive towards renewable energy. People 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’s under the instantly recognisable Shell logo.
But what many people don’t know is we’re also investing heavily in low- and zero-carbon energy, including building one of the UK’s largest public networks of EV charge points. No energy transition can be successful if people are not aware of the alternatives available to them. That is what our adverts set out to show, and that is why we’re concerned by this short-sighted decision”
The ASA has also taken similar action against oil companies Repsol and Petronas for advertising green initiatives whilst not making clear their main source of income. Greenwashing is unfortunately a growing trend. Do you think Shell was wrong to share their ad campaign?
