Z Energy. (File image) Photo: RNZ / Richard Tindiller
Both sides are claiming legal wins as they move towards a trial in a landmark greenwashing case.
Consumer New Zealand teamed up with the Environmental Law Initiative and Lawyers for Climate Action New Zealand Incorporated to file a joint claim against Z Energy in November 2023..
They argued the oil company breached the Fair Trading Act with its claims about saving emissions in its Moving with the Times advertising campaign.
The large-scale campaign, run across 2022-23, touted Z Energy as "in the business of getting out of the petrol business", citing reduced emissions and a commitment to bio-fuel fuel production and electric car charging stations.
The complainants said the fuel supplier's claims misled the public and its subsequent growth in fuel sales meant its emissions actually increased.
They also said Z Energy had been holding up proceedings with legal wrangling in the months ahead of the case going to trial.
But Z Energy said the complainants' claims were not defined clearly enough to be defended.
Now, the High Court has ruled that proceedings should not be delayed any further.
Consumer NZ chief executive Jon Duffy said he welcomed the move.
"The court has provided a clear signal that, actually, the guts of the complaint is fully comprehensible and we need to get on with litigating this matter and actually having arguments on the substantiate issues rather than this endless back-and-forth that we've been having on pre-trial matters."
Jon Duffy from Consumer NZ. Photo: Jon Duffy
Lawyers for Climate Action executive director Jessica Palairet was also happy with the ruling.
She said that the fuel supplier had sought an unnecessary level of detail and additional particulars, which would be an undue burden on the complainants.
"As a result of that - although we're going to make a couple of technical changes to the pleadings now - we're thrilled that the case is able to move forward," Palairet said.
In the next stage of the case, Z would be compelled to provide evidence to show the full scope of the campaign and the company's intentions behind it, she said.
A Z Energy spokesperson also claimed the company's own victory from the process.
"Z welcomes the High Court's order in support of Z's application that the plaintiffs are required to amend their pleading so that Z can be fairly informed of the case against it," the spokesperson said.
"Z continues to defend itself against the claim and looks forward to getting this case resolved in due course."
NZ's first major greenwashing case
Duffy said the case would be the first significant action to call out greenwashing in New Zealand and draw a clear line over companies using concern for the climate to bolster their business.
Greenwashing is the deceptive use of marketing and spin to make a company's products and practises appear environmentally friendly.
"There are a range of sectors in New Zealand who are playing on their green credentials when they actually can't substantiate what they're doing. The Fair Trading Act says you can't mislead people about a range of things including the sustainability of a product or a business strategy, but there's a real lack of that law being applied to facts in New Zealand," Duffy said.
"We hope that this will be a landmark case that will give us some judicial commentary that allows both businesses and advocates and enforcement agencies like the Commerce Commission to have more confidence to either produce marketing that complies or to take enforcement action to call out this kind of bad behaviour," Duffy said.
Greenpeace's Dr Russel Norman said he was disappointed the Government had not been more active in calling out greenwashing.
"There's many corporations that have a vested interest in making environmental claims. And let's remember, corporations only have one purpose, which is to make money. And so if they think they can make money by making environmental claims, then they will.
"So I really do look forward to the discovery phase of this case - which we'll have next - where Z can demonstrate - or not demonstrate - its progress in reducing its emissions."
The two parties are expected to return to court in the coming months.
