Ad Standards, the Australian advertising watchdog, is currently investigating Hancock Prospecting, a company owned by Australia’s wealthiest individual, Gina Rinehart, over allegations of greenwashing.

The company stands accused of misleading the public about the environmental impact of methane gas in its advertisements. The ads in question describes the alleged benefits of working at the group and were featured on Hancock Prospecting’s recruitment webpage and on futureaustralianjobs.com, as well as in the digital edition of an Australian newspaper in October last year. The ads claimed that ‘Our clean gas keeps the lights, and factories, hospitals, and shops open from Tokyo to Toowoomba.’

Climate Communications group, Comms Declare, has lodged a complaint about the ad, asserting that it breached the Environmental Claims Code by being misleading and unsubstantiated. If the complaint is upheld, Hancock Prospecting may be required to alter or discontinue the ad. However, Ad Standards does not have the authority to issue financial penalties.

“From when it’s extracted, transported and burned, gas is harmful to the environment and our health. To claim a flammable, toxic and polluting fossil fuel is ‘clean’, fails the pub test and should not be allowed under the law,” Belinda Noble, founder of Comms Declare, stated.

Comms Declare represents over 100 organisations and hundreds of communications professionals who have pledged not to promote the growth of fossil fuels, high greenhouse gas pollution as ‘business as usual’, or engage in deception, distraction or spin around science or climate actions.

The investigation into Hancock Prospecting’s advertising practices comes at a time when companies globally are under increased scrutiny for greenwashing – the practice of making misleading or unsubstantiated claims about the environmental benefits of a product, service, technology or company practices.

Recent greenwashing action taken in the Federal Court saw Vanguard Investments required to pay a $12.9 million fine for making misleading claims about environmental, social and governance (ESG) exclusions. The penalty is the highest yet for ‘greenwashing’ conduct. According to an end-of-year report, Australian Securities and Investments Commission (ASIC) has made 47 regulatory interventions to address greenwashing misconduct during the 15-month period up to 30 June 2024.