Consumer NZ and environmental agencies are today seeking a High Court declaration that Z Energy has breached the Fair Trading Act by allegedly misleading New Zealanders with its public messaging.
"Regardless of people's stance on climate issues, all New Zealanders want to know they can trust what they're told by big businesses," Consumer NZ chief executive Jon Duffy said.
"We are seriously concerned that Z Energy has made numerous public claims which create the impression it is making bold changes to significantly reduce its emissions and is urgently mitigating its contribution to the climate crisis.
"In reality this is not the case at all."
Z Energy, which was this year named the second-largest greenhouse gas emitter in the country by the Environmental Protection Authority (EPA), is accountable for more than 10% of the country's emissions.
Z Energy acknowledged the claim in a statement released late on Wednesday,
"We take the claim made against Z extremely seriously and are now working to consider our response," the statement said.
The organisations Environmental Law Initiative (ELI) and Lawyers for Climate Action New Zealand Inc (LCANZI) allege Z "has created the impression it is taking urgent action to counter the climate crisis" through advertising campaigns and public statements, even as its fossil fuel sales and carbon emissions continue to increase.
Advertising by Z Energy last year featured slogans including "we're in the business of getting out of the petrol business", and Z is "well on track to achieving [its] carbon reduction targets".
While Z has made various claims about reducing its carbon footprint — including the construction of a biofuel plant and the rapid expansion of its electric vehicle charging network — Duffy said "when we look at them closely, Z Energy's claims don't stack up".
He said Z Energy's total monthly emissions have risen this year, while sales of fossil fuels and its total share of the fuel market have increased.
Duffy also noted that the petrol company's biofuel plant stopped operating in 2020, before shutting down completely last year.
Meanwhile, EV chargers have been installed in a "small percentage" of Z outlets. Its former chief executive, Michael Bennetts, said in a media release last December that it was "on track to have the capacity to charge more than 40 EVs across our network simultaneously" by March 2023.
"By the end of 2023 we plan to have EV charging available at one in five of our Z sites. Within three years, we plan this to increase to see EV chargers show up at two in five Z sites," he said.
Duffy said Consumer, ELI and LCANZI believe Z Energy is capitalising on New Zealanders' concerns about the climate crisis for commercial gain.
"We are concerned Z Energy is suggesting to New Zealanders it is substantially reducing its total emissions, but the actions it has taken to date are nowhere near enough to keep us on track to limit warming to 1.5 degrees," he said.
"We believe Z Energy's messaging indicates it is a sustainable fuel choice, but we don’t believe its actions are consistent with that message."
In response, Z Energy said it acknowledges the statement of claim.
"We take the claim made against Z extremely seriously and are now working to consider our response."
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