Shell’s Misleading Adverts Banned in the UK for Greenwashing Claims

Multiple adverts released by oil giant Shell have been prohibited in the United Kingdom due to their “misleading” content, as ruled by the Advertising Standards Authority (ASA). The independent regulatory body stated that the advertisements suggested Shell’s production consists of a higher proportion of low-carbon energy products than it actually does in practice. The ASA concluded that the adverts failed to disclose significant information about the overall environmental impact of Shell’s business activities in 2022. Consequently, the ban applies to a TV advert, a poster displayed in Bristol, and a video posted on Shell’s YouTube channel. In response, Shell expressed strong disagreement with the ASA’s decision, claiming that while customers are aware of its hydrocarbon production, they lack awareness of the available alternatives. The banned poster in Bristol featured the statement “Bristol is ready for clean energy” alongside the statistic that 78,000 homes in the south-west of England use renewable electricity. The ASA deemed the text misleading as it implied that all of Shell’s operations provided cleaner energy. The TV advert and the YouTube video also featured the slogan “the UK is ready for cleaner energy.” The ASA noted that the adverts emphasized the word “ready” and mentioned only short-term timeframes, giving the impression that Shell already heavily invested in and sold lower-carbon energy products in the UK or would do so in the near future. Shell argues that it would be disproportionate and unworkable for regulators to demand advertisements from businesses with diverse product portfolios to provide a comprehensive overview of the advertiser’s entire business. ClientEarth, an environmental law charity, hailed the ruling as a significant milestone in the regulation of advertising by high-carbon industries. They emphasized the establishment of the concept of “misleading by omission,” wherein companies engaged in carbon-intensive activities can face bans for focusing their ads on less polluting aspects of their business. Sophie Marjanac, a lawyer at ClientEarth, stated that while they welcomed the ASA’s ruling, further action is necessary to ensure advertising truthfulness and prevent high-carbon businesses from impeding the transition to net-zero emissions.