UK Advertising regulator censures Etihad Airways over greenwashing ads

On 12 April 2023, the Advertising Standards Authority (ASA) censured Etihad Airways over advertising which sought to highlight the carrier’s green credentials and “sustainable aviation” practices. The ASA ruled that the adverts misled consumers over the environmental impact of flying with the airline.

The ASA took exception to two adverts on Facebook, which promoted Etihad’s “louder, bolder approach to sustainable aviation”, pushed the theory that choosing Etihad was a “conscious choice for the planet”, and promoted Etihad’s green initiatives such as cutting back on single-use plastic cutlery. The adverts also referred to Etihad as “Environmental airline of the year 2022.”

The ASA acknowledged Etihad’s comments about the use of modern aircraft and flight practices to reduce emissions. However, it nevertheless concluded that there were currently no initiatives or commercially viable technologies in operation within the aviation industry which would adequately substantiate an absolute green claim such as “sustainable aviation” as consumers would interpret it. Etihad is not the first airline to be caught out over “greenwashing” by ASA rules. In March 2023, the ASA reached a similar conclusion when it censured German carrier Lufthansa over adverts which claimed its green initiatives were protecting the world’s future (reported in our March 2023 ESG View).

Overseas, Etihad is also the subject of a complaint to the Australian Competition and Consumer Commission (ACCC) concerning its promotion of its intention to achieve “net zero emissions by 2050” and its claim that “Flying shouldn’t cost the Earth.” An Australian consumer group has claimed that the adverts convey the false or misleading impression that flying with Etihad does not have a significant environmental impact, and that it has plans and reasonable grounds for expecting it will achieve net zero by 2050 (which the consumer group alleges it does not). The ACCC is considering the complaint.

Outside the world of aviation, we are seeing a significant uptick in regulators’ efforts to tackle greenwashing in the promotion of consumer products and services. For example, in October 2022, a number of financial institutions’ environmental claims in adverts were investigated by the ASA, with one bank facing censure for two adverts which the ASA found were misleading on the basis that whilst they sought to promote the bank’s green initiatives, they omitted information about its contribution to carbon dioxide and greenhouse gas emissions. Earlier that year, the ASA found Tesco to have misled customers over the environmental claims of certain of its meat-free products, and Innocent Ltd (maker of Innocent smoothies) faced censure over its claims that it was “fixing up the planet”.

Although these rulings do not impose any monetary penalties, they can result in reputational damage. They may also go some way in motivating similar complaints in the future.