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ASA Ruling on Petroliam Nasional Berhad (trading as Petronas) - decision

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In September 2022, a TV ad for Petronas was seen. The ad began with a voice-over, spoken by a child, which said, “Our story began with a dream, to see if we could take on an industry. It wasn't easy, but slowly, good began to happen.” Scenes of traffic moving, a port full of shipping containers, broken ice floating on the sea, litter in a river and a forest fire were shown. The voice-over continued, “But as the world produced more energy it became nature's problem, and we were part of it. An answer was needed so we started connecting the dots, to become a progressive energy and solutions partner, enriching lives for a sustainable future.” Solar panels, children in classrooms, a well being built and recycling in a factory were shown. The voice-over said, “To reduce emissions, grow renewable energy, bring education to more, champion social impact and promote a circular economy, as well as achieve net zero carbon emissions by 2050” and text stating “Net Zero 2050” was shown on screen. The voice-over continued, “Let's connect the dots together and create a more sustainable future for all so that our next generation will always have something to look forward to” and a child was shown looking out into the distance. 
By a ruling of June 7, 2023, the ASA upheld its challenge to the ad. 
The CAP Code required that the basis of environmental claims must be clear and stated that claims could mislead if material information was omitted. 
Consumers would understand the ad to mean that Petronas was already an energy company that was contributing to a sustainable future by making progress towards emissions reductions and growing the use of renewable energy, as well as having a plan in place that would result in it achieving these goals and net zero by 2050.
The acknowledgment in the ad that Petronas was part of “nature’s problem” was about their past contribution. It did not therefore counteract the claims in the ad about Petronas’s current activities and future plans.
Petronas told ASA that they were taking steps towards net zero and promoting sustainable energy, and these were reflected in the ad. Other claims in the ad were said to be intended to be aspirational rather than targets that had already been achieved. However, despite that, in 2021 Petronas’ operations produced 45.2 million tons of greenhouse gases. While viewers would recognise that companies in the oil industry were likely to be higher emitters of greenhouse gases than many other industries, they would not understand the extent of Petronas’ continuing significant contribution to greenhouse gas emissions given the presentation and claims in the ad, which went beyond aspirational claims. The information about the balance of Petronas’ current activities, its emissions and the pathway to reducing them in line with the claims made in the ad, was therefore material information likely to affect consumers’ understanding of the ad’s overall message and so should have been made clear. The ad therefore omitted material information and was misleading.
The ASA ruled that the ad must not be broadcast again in its current form. The ASA told Petronas to ensure their future marketing communications did not misleadingly omit material information.
This Ruling formed part of a wider piece of work on environmental claims in the energy sector, following intelligence gathered by the Advertising Standards Authority (“ASA”).

ASA Ruling on Petroliam Nasional Berhad (trading as Petronas)

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

Terrestrial means "of the earth" and relates to the risks to ecological system that includes all living organisms and their interactions within land-based environments, such as forests, grasslands, and deserts.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

Climate change impacts our society by disrupting the natural, economic and social systems we depend on. Physical hazards and underlying vulnerabilities can lead to increased resource competition for food and water, which can heighten the risk of conflict.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

This sector involves activities to move goods and people, alongside the storage of products.

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

ASA Ruling on Petroliam Nasional Berhad (trading as Petronas) - decision

Target

Risk

Impacted group

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector