Open war between the two largest energy companies on the Ibex 35. The largest Spanish electricity company, Iberdrola, has filed a lawsuit against the country's largest oil company, Repsol, of course greenwashing, the Anglicism that refers to the attempt to try to pass off polluting activities as green. The lawsuit has been admitted for processing by the Commercial Court number 2 of Santander (Cantabria), according to what legal sources have informed CincoDías and EL PAÍS. When asked by this newspaper, a Repsol spokesperson claims to have no knowledge of it.
Skirmishes between both companies have been the talk of the energy sector for months, but almost always sottovoce. All that has been blown up. The company chaired by Ignacio Sánchez Galán filed a lawsuit against Repsol on February 21 based on three articles of the unfair competition law: acts of deception, misleading omission and illicit advertising in the latest campaigns carried out by the oil company. . In its crusade, the electricity company has relied on two expert reports prepared by renowned firms in the world of energy and advertising, the consulting firm Nera and Roman Reputation Matters. That both share a crusade against the tax does not seem to be enough glue in their relationship: their underlying struggle, in the midst of redefining the energy map for the coming years, is much greater.
“When Repsol presents itself as a leader in the energy transition and committed to climate objectives, despite the fact that the vast majority of its activity comes from fossil fuels, it is carrying out unfair competition, by using misleading and therefore illicit advertising, and intended to influence consumer choices,” emphasize Iberdrola sources, who recall that the oil company “has already been sanctioned twice for greenwashing by Advertising Standards Authority (HANDLE) from the United Kingdom, in campaigns with messages similar to those of Spain.” The British regulator, these sources emphasize, “forced Repsol to withdraw a biofuels campaign” in which he stated: “At Repsol, we develop biofuels and synthetic fuels to achieve zero net emissions.”
In the opinion of the electricity company, the oil company has carried out three advertising campaigns – on biofuels, renewable hydrogen and multi-energy – that “constitute acts of greenwashing”. A situation that, they say, also applies to up to 15 entries contained on their corporate website. Repsol, Iberdrola claims, “is misleadingly improving customer perception,” affecting their decision-making, both currently (with customers who “may decide to switch to Repsol,” it argues), and in the future ( with consumers who “overvalue Repsol's proposal compared to Iberdrola's”). “The generalization of greenwashing practices ends up eroding consumer confidence in genuine sustainability initiatives,” the electricity company concludes.
“Nervousness”
Although the lawsuit has not yet been notified to Repsol, the company has reacted to Iberdrola's accusations and calls the electricity company's actions in the courts “nervousness.” The company chaired by Antonio Brufau and directed by Josu Jon Imaz assures that its “strategy and value proposition to clients” has generated this sensation in the plaintiff, since “it is not used to operating in a competitive framework, but rather to depending on the rules of an eminently regulated market.”
“Repsol will continue to grow in electricity customers and will continue to offer society present and future energy solutions, such as renewable fuels, which are seen by some, including Iberdrola, as a threat to the false discourse that electrification “It is the only solution to reduce CO2 emissions in transportation,” adds the oil company.
Along these lines, remember that in 2023 it was positioned as the fourth marketer in the country and added 246,000 new electricity customers in Spain, being the operator with the most new additions last year, and highlights the commitment it reached in December 2019 of zero net emissions in 2050.
“Strategies aimed at exaggerating”
The writing, advanced by The confidential and to which CincoDías and EL PAÍS have had access, attributes to Repsol illegal conduct consisting of conveying to consumers the message that a certain organization, product or service is more sustainable or respectful of the environment than it actually is. is. According to Iberdrola, Repsol's communications have omitted “the company's main activity and the true environmental effects of its products and services.” “In other words, we are faced with marketing strategies aimed at exaggerating or directly falsifying a company's commitment to sustainability and environmental responsibility,” the letter states.
Throughout 107 pages, Iberdrola disagrees with the image that its competitor transmits to the market, in which it defines itself—according to the lawsuit—as “a sustainable company, a leader in the energy transition and that protects the environment, the reduction of the carbon footprint and mitigation of the effects of climate change.” In his opinion, Repsol “deliberately omits relevant information in its statements” and highlights facts such as that in 2022 it increased its CO2 emissions by 16%, “being the largest CO2 emitter in Spain”; which allocated 82% of its investments to fossil fuels and only 0.82% to the production of renewable energy, which means “only 0.4% of its income comes from renewable generation activities.” He adds that among the multiple environmental claims present in its advertising, it includes in a “sneaky (and camouflaged) way” campaigns that do not contribute to sustainability, but instead encourage an increase in the consumption of fossil fuels.
In this regard, Repsol responds that in renewable generation it has 2,800 MW of installed capacity in Spain and, in the electric charging sector, it has signed important contracts with relevant companies and has more than 1,700 operating points. It also indicates that its network of service stations is made up of more than 3,300 points spread throughout the country and that, in October of last year, it already began the production of renewable hydrogen for the decarbonization of large industrial centers.
Even so, Iberdrola considers that Repsol's conduct does not fit into the legal system, since it is “aimed at confusing the consumer by conditioning their purchasing decisions by transmitting an (unrealistic) perception of sustainability and is carried out with clear competitive purposes, aimed at to achieve a significant competitive advantage over other competitors.
In addition, the lawsuit recalls that the oil company has been condemned twice by the British advertising self-control body, in June and October 2023, which forced it to withdraw two advertising campaigns “with content practically identical to the demonstrations and campaigns” that have been questioned.
For all these reasons, the Basque multinational requests the withdrawal of several advertising campaigns, as well as the destruction of any material that could reach consumers, such as packaging, posters, brochures, videos, acoustic recordings, and urges the prohibition of publication in the future. of contents identical or analogous to those reported. Likewise, it asks the court that, in the event that the matter is resolved with a conviction, Repsol publishes said resolution on its corporate website, as well as on radio and television, at least once a day for a week, on the same channels. and the same time slot and duration that the contents declared illicit had, as well as in two newspapers with the largest circulation nationwide, and on social networks (Instagram, Facebook, Twitter, LinkedIn, YouTube, Flickr and TikTok).
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