Shell vigorously contested the ruling regarding its advertisements, labeling it “short-sighted” and claiming it could “slow the United Kingdom’s transition to renewable energy.”
Three advertisements for Shell’s climate-friendly products have been prohibited for downplaying the company’s “large-scale” investments in oil and gas.
The Advertising Standards Authority (ASA) determined that the advertisements gave the impression that “a substantial portion of Shell’s business” consisted of “low carbon energy products.”
The company “omitted” information that oil and gas comprised the “vast majority” of its operations, according to the ASA.
Shell strongly disagreed with the watchdog’s judgement and said it could slow the UK’s renewable energy transition.
The three advertisements in question highlighted the renewable energy and sustainable energy services that Shell offers, including electric vehicle charging.
Last June, a Shell advertisement claimed that 1,400,000 UK households used 100% renewable electricity.
By 2025, the company planned to install 50,000 electric vehicle chargers nationally and work on a six-million-home wind project.
Shell’s YouTube channel featured a video with the following description: “From electric vehicle charging to renewable electricity for your residence, Shell is providing customers with more low-carbon options and contributing to the UK’s energy transition. The United Kingdom is prepared for cleaner energy.”
Shell UK stated that it intended the advertisements to increase consumer awareness and demand for its range of energy products that are better for the environment than fossil fuels.
It cited research indicating that 83 percent of consumers primarily associate the brand with the sale of petrol and argued that consumers would be “unlikely to assume that the advertisements covered the full scope of its business activities.
Shell spent 17% (£3.5bn) of its total capital expenditures (£20bn) in 2022 on “low-carbon energy solutions” such as renewable wind and solar power, electric vehicle charging, biofuels, carbon credits, and hydrogen fueling stations.
The reason why the ASA upheld the complaint
The ASA recognized that many individuals would associate Shell with petrol sales and hydrocarbon and gas production.
In response to the climate catastrophe, many carbon-intensive industries, such as oil and gas, planned to substantially reduce their emissions.
Coal, oil, and gas combustion is the leading cause of climate change, accounting for 75% of global greenhouse gas emissions.
“We understood that large-scale oil and gas investment and extraction constituted the vast majority of the company’s business model in 2022 and would continue to do so shortly,” the ASA stated.
“Because (the advertisements) gave the overall impression that a significant portion of Shell’s business consisted of lower-carbon energy products, we believed that additional information about the proportion of Shell’s overall business model that consisted of lower-carbon energy products should have been included.
“Because the advertisements lacked this information, we determined that they omitted material information and were likely to deceive.”
It ruled that the advertisements must no longer appear.
A spokesperson for Shell stated, “We strongly disagree with the ASA’s decision. Which could impede the United Kingdom’s progress towards renewable energy.”
People are well aware that Shell produces the crude and gas on which they currently rely. When customers top up at our petrol stations throughout the United Kingdom. They do so beneath the instantly recognizable Shell logo.”
Shell asserted that many individuals are unaware of its investments in environmentally favorable options. Such as its extensive public networks of EV charging stations.
It continued, “No energy transition can be effective if people are unaware of the available alternatives. This is the message of our advertisements, which is why we are concerned about this short-sighted decision.”
Veronica Wignall of the activist network Adfree Cities, which filed the complaint with the ASA, stated, “Today’s official ban on Shell’s advertisements marks the end of fossil fuel greenwashing in the United Kingdom.
“The world’s largest polluters will not be allowed to market themselves as ‘green’ while constructing new pipelines, refineries, and oil rigs.”
She suggested banning fossil fuel companies from advertising due to their role in the climate problem.
