Settlement of Z Energy Greenwashing Case

In a landmark and NZ-first settlement, Z Energy has apologised for any confusion caused by aspects of its advertising campaign, which claimed it was moving with the times and in the business of getting out of the petrol business. 

In November 2023, we joined forces with Consumer New Zealand and the Environmental Law Initiative to seek High Court declarations that Z Energy had misled New Zealanders with its advertising campaign claiming it was “in the business of getting out of the petrol business”. This followed a complaint we first made to the Commerce Commission in 2022.

All parties have now mutually agreed to settle the case, after Z Energy apologised for any confusion caused by parts of its campaign and to any customers who thought Z was going to stop selling petrol any time soon.

The agreement to settle did not include any payment to the plaintiffs. The plaintiffs acknowledge that Z Energy does not consider its actions to be greenwashing, or to involve misleading and deceptive conduct, and has not admitted any liability.  

This is a constructive and positive outcome, and one which we have achieved years before we would have reached court and received a judgment. Our goal in taking this case was to hold Z Energy accountable. Today’s public apology by Z Energy, featured in full-page advertisements in newspapers across the country, shows that we have achieved that.

In this case, three small not-for-profits joined forces to call out a big corporate entity for greenwashing. This was the first climate greenwashing case in New Zealand history, and is the first settlement of a greenwashing climate case, as well.

While the government and regulators are currently missing in action, we have shown that we are not afraid to step in to fill that gap. This case sends a clear message to other major businesses: if you cross or sail close to the line on green claims, you run the risk of being very publicly held to account, and spending significant sums of money to defend yourself in legal proceedings.

The wave of accountability is spreading. Z Energy’s apology follows an apology from Energy Australia in the settlement of a greenwashing case brought by Australian Parents for Climate Action, and comes at the same time as a landmark ruling in France against TotalEnergies’ greenwashing advertising. Outcomes like this show that the pressure is working. 

We will continue to monitor the claims of major polluters, including Z Energy, to ensure they are meeting the law.

In the settlement statement, published below, Z Energy has acknowledged that petrol and fossil fuels are a leading contributor to climate change, and that transport emissions, including from the fuel Z Energy sells, are a big part of New Zealand’s emissions. 

Z Energy has also agreed with the plaintiffs that the government has a crucial role in facilitating the energy transition in New Zealand, particularly in relation to the transport sector. Having one of New Zealand’s largest emitters join our call for the government to step up and better support climate action is extraordinary. We need a robust plan to transition away from fossil fuels, and Z Energy agrees with our stance that the government needs to step-up to make this happen.

Thank you to all of our lawyers who worked on this case on a pro bono and low bono basis since our original complaint in 2022.