Shell PLC (LSE:SHEL, NYSE:SHEL) has had several adverts banned in the UK after regulators ruled they failed to acknowledge the oil giant’s impact on the climate when discussing clean energy production.
Three adverts run in 2022, shown on television, YouTube and a poster in Bristol respectively, were banned by the Advertising Standards Authority (ASA) over misleading claims.
“The ads were misleading because they omitted significant information about the overall environmental impact of Shell’s business activities,” campaigner Adfree Cities had argued.
“Adfree [… ] understood that Shell’s business activities included substantial, ongoing and expanding fossil fuel production,” the ASA added.
Shell’s poster in Bristol was banned due to not clearly differentiating between its core and retail businesses, having potentially misled people over the former’s green credentials.
The advert had discussed the number of homes supplied with renewable energy by Shell’s retail wing in the southwest, claiming Bristol was “ready for cleaner energy”.
Shell’s YouTube and TV adverts, which featured the same video, faced similar rulings from the ASA, having given “the impression that low-carbon energy products comprised a significant proportion [Shell’s] products”.
FTSE 100-listed Shell denied the ads were misleading and constituted greenwashing, arguing instead that the ASA’s decision “could slow the UK's drive towards renewable energy”.
"No energy transition can be successful if people are not aware of the alternatives available to them,” a company spokesperson said.
“That is what our adverts set out to show, and that is why we're concerned by this short-sighted decision.”