Not-for-profit group Flight Free Australia on Wednesday lodged a greenwashing complaint to the Australian Competition and Consumer Commission against the United Arab Emirates' national carrier, following concerns over an advertisement campaign.
In the complaint, FFA alleged Etihad may have breached the Competition and Consumer Act by positioning itself as a leader in sustainability and climate responsibility on a billboard at Melbourne's AAMI Park on February 15 last year.
It refers to the statements "Flying shouldn't cost the earth" and "Net zero emissions by 2050", displayed alongside the Etihad logo on digital billboards during an A-League soccer game.
FFA claims the billboards implied flying with Etihad does not have a significant environmental impact and Etihad either intends or reasonably expects to achieve net zero emissions by 2050.
Flight Free pledger Alex Mungall called on Etihad to withdraw its sustainability claims.
"When we see Etihad sponsoring sports, and advertising their so-called sustainability, that flying 'need not cost the earth' or that they will achieve 'net zero by 2050', we see potential greenwashing," Mr Mungall said.
"Our complaint alleges Etihad has no credible path to net zero in place and is instead talking up emissions reduction initiatives that are not technologically, practically or economically feasible."
The Environmental Defenders Office, which is representing FFA, said there was no evidence to support Etihad's environmental claims.
"We've pored over Etihad's public documents and found insufficient evidence that it intends, or reasonably expects, to reach net zero by 2050," EDO Senior Solicitor Zoe Bush said.
She also accused the airline of deceiving and exploiting consumers who wanted to make sustainable choices.
Etihad said it runs a comprehensive research and development program to address aviation decarbonisation, and is committed to achieving net zero emissions by 2050. The airline has also committed to a 20 per cent reduction in emissions intensity by 2025.
"Our ambition is to reduce the impact of aviation on the environment, and we continue to explore and test all possible ways to decarbonise – from research into sustainable aviation fuels and contrail avoidance to offsets and reforestation through the Etihad Mangroves," a statement from the airline said.
Last year, the Albanese government announced big businesses would be forced to divulge their efforts to cut greenhouse gas emissions and manage climate risk under green investment rules.
Treasurer Jim Chalmers said an Australian climate risk disclosure framework would help boost investment in clean energy and other infrastructure needed to transition to a sustainable, low-carbon economy.
