Small Group, Big Impact: Parents for Climate Shake Up Energy Sector Over Greenwashing

In a landmark legal win, the non-profit Parents for Climate has made waves by holding one of Australia’s biggest energy providers, EnergyAustralia, accountable for misleading "carbon neutral" claims. Their efforts have not only put the energy giant on notice but also cast a spotlight on the federal government’s Climate Active certification program—raising alarms about what some are calling state-backed greenwashing.

The crux of the legal case? EnergyAustralia’s “Go Neutral” product claimed to cancel out pollution from coal and gas using carbon offsets. But just before the trial, the company admitted such emissions cannot be undone by offsets—effectively acknowledging that their long-held claims were misleading.

This admission has serious implications for major energy players like AGL, Origin, Alinta, and Powershop, as well as household brands like Coles and Qantas, which rely on the Climate Active program to support their carbon neutral marketing. According to Parents for Climate CEO Nic Seton, all these companies now face greater legal and reputational risks if they continue down this path.

Despite the fallout, the government has yet to take concrete action. While the Department of Climate Change acknowledges the need to reform the Climate Active scheme, the program continues certifying carbon neutral claims. Seton likened the scheme to "state-sponsored greenwashing", enabling companies to stamp misleading claims with official approval.

Seton also called out the Australian Competition and Consumer Commission (ACCC) for their silence on the case. “The regulators know this is a problem, but we’re not seeing transparent action,” he said. Frustrated by the lack of response, Parents for Climate took the bold step of going to court—despite being a small, volunteer-led organization with limited resources.

Taking on a major corporation wasn’t easy. The legal battle drained the small team emotionally and financially. Seton described the experience as “scary and exhausting,” involving countless late-night discussions and hard decisions. But in the end, it was worth it to expose the truth and demand accountability.

With EnergyAustralia’s admission now public, Parents for Climate plans to warn other companies still marketing similar “carbon neutral” energy products. Legal experts suggest this case sets a precedent that could be used to challenge any company making similar false or misleading green claims.

The case has also highlighted deeper issues within the global carbon offset market. Seton pointed out that some of the credits used by EnergyAustralia were of “very questionable quality”—possibly offering no real environmental benefit at all. “We’re not even sure the credits had any positive effect,” he said.

Many customers believed they were helping the planet by choosing Go Neutral. After the settlement, several reached out to Parents for Climate, frustrated to learn they had been misled—and even more shocked to discover the government had approved the program under Climate Active.

Seton believes Australia is lagging behind global leaders like the European Union, which has banned misleading green claims like those used in Go Neutral. “Until our government steps up,” he warned, “consumers will continue to be vulnerable to corporate greenwashing.”

As an advocate for transparency and sustainability, EServices4U applauds the efforts of Parents for Climate. Our commitment is to provide honest and effective energy solutions—from energy bill audits to solar panel consulting—ensuring our clients reduce their carbon footprint the right way. We believe in building a cleaner energy future through real action, not misleading claims. Learn more at www.eservices4u.com.au