Oil and gas giant Repsol has been rapped for the second time this year by the UK’s advertising regulator over an ad promoting low-carbon fuels.
In a decision posted to its website this morning, the Advertising Standards Authority (ASA) said the ad – which ran in July on the Financial Times website – was misleading because it failed to put the firm’s plans to produce lower-carbon fuels in the broader context of its existing fossil fuel operations. It marks the second time in a year the Spanish firm has had an advert about green fuels ruled against by the ASA on the grounds it omits material information about the firm’s business activity.
The advert in question featured an image of a water droplet with text that stated: “Renewable hydrogen, another alternative to reduce emissions. At Repsol, we are committed to renewable hydrogen as an energy source that offers up different uses such as zero net emissions synthetic fuel production.”
Graphics in the ad, which was made by agency DDB Spain, included a solar panel with a sun, a car with the stylised letter ‘e’ that had a plug at the end, a wind turbine, a sapling and a petrol pump with a leaf on it.
The ASA said the ad breached two parts of the UK’s advertising code because it gave the “overall impression that a significant proportion of Repsol’s business comprised lower carbon energy, such as renewable hydrogen”.
In the justification for its ruling, the ASA noted Repsol produced 600,000 barrels of oil a day and pointed to the firm’s extensive oil and gas exploration strategy as evidence of how the “vast majority of Repsol’s business interests” were focused on large-scale global fossil fuel investment. It also highlighted how in 2021 Repsol’s carbon emisisons stood at 171 million tonnes. The ASA also pointed out that Repsol did not yet have any hydrogen production facilities in operation or in development.
The intervention is the latest in a string of rulings from the ASA this year that have accused oil and gas companies of failing to put messaging about their clean energy initiatives in the context of their broader fossil fuel expansion activity. Previous rulings included an ad from Repsol which promoted its commitment to biofuels and synthetic fuels.
In its response to the ASA’s enquiry, Repsol said it had been unable to add more information about its business activity due to the size of the ad; stressed that the ad linked to its corporate website where more information was available; and argued the ad was focused on potential investors, rather than the general public.
A spokesperson from Repsol said: “We respectfully disagree with this ruling and remain committed to maintaining our leadership in providing increasingly decarbonised energy for society though our investments in hydrogen, renewable fuels and renewable power, amongst others.”
But campaign group Adfree Cities, which submitted the complaint to the ASA, said the ruling demonstrated a need for a blanket ban on fossil fuel advertising.
“Repsol has reached a new neon shade of greenwashing by promoting renewable hydrogen – a fuel type it doesn’t yet produce,” said Veronica Wignall, codirector at Adfree Cities. “Fossil fuel companies are continuing to spread misinformation to distract from their catastrophic expansion plans, and advertising regulation is frankly failing to keep greenwash in check. We don’t permit advertising for tobacco, weapons or dangerous chemicals, so why are we still seeing adverts that promote companies like Repsol that are driving us further into climate collapse?”
In a separate green ruling announced today, the ASA sided with complainants over two car ads from Nissan Motor GB, ruling the ads were misleading because they did not make the clear the extent to which the cars in question required petrol as a power source.
The ads in question ran over the last few months on TV and promoted Nissan’s Qashqai model, which uses a battery to drive the wheels and has a 1.5-litre petrol engine under the bonnet that can be used to charge the battery.
“Whilst the ad did not include any explicit claims in relation to the car’s environmental impact, we considered that by focusing on the car’s use of electricity, consumers were likely to understand that the car was a better choice for the environment than traditionally fuelled vehicles,” the ruling states. “However, because the ads did not make sufficiently clear the nature of the vehicle’s power source and because it required petrol to power the electric motor, which would produce tailpipe emissions, we considered that the ads were also misleading in this regard.”
The ASA said it had banned the ads and told the carmaker that future ads would need to make the nature of a vehicle’s power source “sufficiently clear”.
In response to the ruling, a spokersperon from Nissan said: “We are disappointed with the ruling made by the ASA although of course we will respect their decision. We remain fully committed to helping our customers understand the different technologies available to them, including hybrid, e-POWER and full electric. e-POWER uses a petrol engine and a lithium-ion battery to power an electric motor. The electric motor alone drives the wheels, providing a uniquely exciting technology that brings customers who are not quite ready for a fully electric vehicle as close to the excitement of EV driving as possible.”
The rulings come a day after the Competition and Markets Authority launched a probe into boiler manufacturer Worcester Bosch over misleading claims that its boilers were ‘hydrogen-blend ready’.
Specifically, the investigation will focus on labels and advertising of boilers which tout their ability to run on a mix of 20 per cent hydrogen and fossil gas, despite this feature being a legal requirement for all boiler manufacturers in the UK since 1996.
It will also look at claims from the company which promote the future use of hydrogen for home heating in the UK, despite the fact the government is yet to make a decision on whether it plans to allow hydrogen to be blended into the gas grid.
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