(Adds comment from Woodside in paragraph 2; Adds information...

(Adds comment from Woodside in paragraph 2; Adds information from Woodside's 2022 climate report in paragraph 7)

Greenpeace Australia said on Thursday it had filed a lawsuit against the country's largest oil and gas company Woodside Energy (WDS) alleging it deceived the public over its green credentials.

Woodside said it would defend itself against the claims, which a spokesperson said were without merit.

The suit filed in the Federal Court of Australia alleged the company's statement that it cut direct emissions by 11% was deceptive because the reduction was due to the "heavy use" of carbon offsets. Actual emissions rose 3%, Greenpeace said.

Greenpeace also alleges Woodside misrepresented its net zero-by-2050 plan by excluding emissions produced when customers burn its fuels.

"Woodside is treating the Australian public and its shareholders like mugs," Greenpeace Australia Pacific CEO David Ritter said in a statement.

"We’re now asking the Federal Court to rule that Woodside's claims are misleading. These should be corrected and the fossil fuel giant should be prevented from making these claims."

Woodside said in its 2022 climate report that it cut its scope 1 and 2 emissions, which refer to those produced in the company's operation and power use, by 11% with the help of retiring 754,000 metric tons of carbon dioxide-equivalent credits.

The climate page of its website mentions the 11% reduction without explaining how that was achieved, but provides a link to the climate report.

Greenpeace wants the court to rule Woodside engaged in greenwashing and require it to amend its claims, desist from similar ones in the future and pay legal costs, according to a spokesperson.

This is the latest lawsuit by an environmental group against Woodside amid a series of legal and direct action campaigns also involving indigenous groups, mainly focused on stopping its proposed $12 billion Scarborough gas project in northwestern Australia.

Last week, Woodside announced talks for a merger with smaller rival Santos (STO) , itself the target of legal action from environmental and indigenous groups.