Greenwashing in the energy sector: Iberdrola vs Repsol and the challenge of sustainability

Last February, two giants in the energy sector, Iberdrola and Repsol, were involved in an unusual legal dispute that has highlighted an increasingly common phenomenon in the industry: greenwashing. Both companies have accused each other of using marketing strategies to appear sustainable and environmentally friendly, despite the fact that the vast majority of their income still comes from activities related to hydrocarbons. Greenwashing, a term that refers to the practice of some companies appearing to be environmentally friendly without this being reflected in their actual actions, is a growing problem in such a polluting sector as the oil industry. According to The Greenpeace Book on Greenwash, many companies resort to discursive changes and marketing campaigns to project a green image, without significant changes in their operations. The conflict between Iberdrola and Repsol has even reached the courts, with both companies filing lawsuits for greenwashing. Iberdrola has questioned the consistency between Repsol's advertising campaigns and its main business focused on hydrocarbons, while Repsol has responded with similar accusations towards Iberdrola. Beyond this particular case, the debate on greenwashing in the energy sector has gained relevance due to the urgent need to combat climate change. Experts like Pablo Montaño, from the organization Conexiones Climáticas, point out that the oil industry has historically been responsible for environmental pollution and for obstructing decarbonization policies. According to an analysis by Influence Map on the world's top five oil companies, these companies spend hundreds of millions of dollars on climate-related communication campaigns, despite allocating only a small fraction of their capital to low-carbon businesses. This discrepancy between green rhetoric and actual practices calls into question the sincerity of companies in their commitment to sustainability. The Iberdrola vs Repsol case is just the tip of the iceberg of a broader problem in the energy industry. Despite advances in renewable energies, many companies continue to rely on hydrocarbons and increase their production of oil and gas, rather than transitioning to a more sustainable model. The signing of the Paris Agreement in 2015 should have marked a turning point in the transition to a low-carbon economy, however, studies like CarbonMajors show that most energy companies have increased their hydrocarbon production in recent years, contradicting global climate goals. Faced with this reality, some places, such as Sydney in Australia, France, and Amsterdam in the Netherlands, have taken measures to ban fossil fuel advertising and greenwashing actions by companies. These initiatives aim to curb deceptive practices that perpetuate dependence on polluting fuels and hinder the transition to a truly sustainable economy. In summary, the case between Iberdrola and Repsol is a reminder of the challenges facing the energy industry on its path to sustainability. Greenwashing not only affects the credibility of companies, but also hinders efforts to combat climate change and protect the environment for future generations. It is necessary for companies to make real commitments to sustainability and abandon deceptive practices that only perpetuate an unsustainable system.