Air New Zealand's inflight cups are an example of greenwashing, Consumer NZ says, as it calls for a Commerce Commission investigation into businesses' environmental claims.
The airline's cup could be composted in commercial facilities, but New Zealand had a limited number of industrial composting facilities and most of the cups ended up in landfill, with a similar environmental impact as a standard use single cup.
Air NZ chief sustainability officer Kiri Hannifin said the limited composting infrastructure meant it was not always possible to compost the cups, but it was unfair to more broadly accuse the airline of greenwashing.
"We took a step in the right direction when we introduced these cups in 2019 and believe they are better than other single use options while still meeting our inflight operational requirements," Hannifin said.
"We've already committed to reviewing our waste management strategy and will have a team undertaking this work later this year. Along with many of our onboard items, the cups will be in-scope.
"We've also got an ambitious roadmap to decarbonise our airline, including being one of only eight airlines in the world to have a science-based target, partnering with the government to explore the feasibility of sustainable aviation fuel in New Zealand and advancing the work globally on green hydrogen, battery electric or hybrid aircraft."
However, Consumer investigative team leader Rebecca Styles said the marketing of the cup could mislead consumers.
She said regulators in the European Union, Britain and Australia found between 40 to 50 percent of environmental claims in industries like clothing, cosmetics, food and drinks were false.
"We are seriously lagging behind our international counterparts," Styles said, adding that the Commerce Commission had a responsibility to police false claims, but generally relied on consumers to report them.
"One of the issues with greenwashing is it can be near impossible for a shopper to identify what is genuinely sustainable, and what is not."
Styles said there was no shortage of products spouting environmental claims.
"We have found that many of these 'green' claims are meaningless," she said.
"We are concerned that well-meaning consumers are being led to believe products are more sustainable than they are.
"We want New Zealanders to join our call for an independent investigation into greenwashing claims in New Zealand, and new regulations to tackle greenwashing.
"Together we can put an end to this deception."
RNZ also asked the Commerce Commission for a response to Consumer's report.