Regulator Rules Hancock Prospecting’s Ad Misleading
Gina Rinehart’s Hancock Prospecting misled consumers by calling gas “clean” in a recruitment advertisement, the Ad Standards Community Panel ruled. The ruling followed a complaint against the company’s digital ad, which appeared in The Australian in October 2024.
The panel found that Hancock Prospecting’s ad breached the Australian Association of National Advertisers (AANA) Environmental Code. The regulator ruled that the ad’s wording gave the impression gas had no environmental impact, misleading consumers.
Advertising Standards Panel Decision
The advertisement featured the claim: “Our clean gas keeps the lights, and factories, hospitals, and shops open from Tokyo to Toowoomba.” The panel determined that the term “clean” in this context implied the energy source produced no emissions or environmental harm.
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The ruling highlighted two breaches of the AANA Environmental Code:
- Environmental claims must not be misleading or deceptive
- Claims must be substantiated and verifiable
Hancock Prospecting defended its position by arguing that gas produces fewer emissions than coal. The company stated that gas emits less carbon dioxide when burned, works with renewable energy systems, and releases fewer pollutants than coal or oil.
However, the panel ruled that the company failed to prove gas was completely clean. The regulator noted that Hancock Prospecting provided information about gas being cleaner than other fossil fuels, but not evidence that gas was entirely clean.
Complainant’s Argument and Environmental Impact
The climate communications group Comms Declare submitted the complaint. The organisation argued that gas contributes significantly to pollution at multiple stages, including extraction, transport, and combustion.
Comms Declare also cited the negative health effects of gas emissions. Methane, the primary component of natural gas, is a greenhouse gas with significant global warming potential. The International Energy Agency (IEA) states that methane has 80 times the warming impact of carbon dioxide over a 20-year period.
Environmental concerns related to gas include:
- Methane leaks: Gas extraction and transport can release methane into the atmosphere, intensifying climate change.
- Combustion emissions: Burning gas produces carbon dioxide, contributing to global warming.
- Health effects: Gas-related pollution can cause respiratory issues and other health conditions.
The panel ruled that, without additional disclaimers, the ad was misleading. The decision reinforced the need for clear and substantiated environmental claims in advertising.
Hancock Prospecting’s Response
Following the ruling, Hancock Prospecting stated that it had discontinued the advertisement. The company maintained that gas is a cleaner alternative to other fossil fuels but did not comment further on the decision.
The Role of Gas in Australia’s Energy Sector
The gas industry plays a key role in Australia’s energy market. The sector supports domestic power generation and contributes significantly to exports.
Key industry figures:
- The Australian oil and gas industry had a market value of over A$43 billion in 2023.
- Liquefied natural gas (LNG) exports generated approximately A$90 billion in revenue in 2022.
- Gas accounts for about 27% of Australia’s total energy consumption.
- Australia is one of the world’s largest LNG exporters, alongside Qatar and the United States.
Despite its economic significance, gas faces increasing scrutiny due to its environmental impact. Methane emissions and carbon dioxide output remain major concerns in the debate over the future of energy production.
Advertising in the Energy Sector
Australia’s advertising industry operates under a self-regulatory system. Ad Standards enforces the AANA code, ensuring that environmental claims in advertising are accurate, clear, and verifiable.
Energy companies face growing pressure to substantiate their environmental claims. The ruling against Hancock Prospecting highlights the increased scrutiny on fossil fuel advertising.
Implications for Industry and Future Advertising
The panel’s decision signals tighter oversight on corporate environmental messaging. Companies making environmental claims must ensure their statements are transparent, fact-based, and supported by evidence.
This case reflects broader trends in corporate accountability and environmental transparency. As consumer awareness increases, businesses must adapt their marketing strategies to align with regulatory standards and public expectations.
The ruling reinforces the importance of clear communication in environmental advertising. Companies in the energy sector must ensure their claims are not only factual but also properly qualified to avoid misleading consumers.
