Is Octopus Energy ethical?
Overall, Octopus Energy performs reasonably well in our energy suppliers guide, and is a recommended energy supplier. Even so, our research highlights several ethical issues, including likely use of tax avoidance and lobbying activities. The company’s ownership also raises some questions about Octopus Energy’s ethical performance.
Below we outline some of these issues. To see the full detailed stories, and Octopus Energy's overall ethical rating, please sign in or subscribe.
What is Octopus Energy’s environmental performance?
Octopus Energy is a major investor in renewable energy. More than 10% of the company's total electricity supply was covered by a mix of power purchase agreements (PPAs) and renewables. PPAs are long-term agreements, typically with the suppliers of renewable energy. Octopus Energy did not disclose the exact proportion, but stated that it generated enough green power for 2.6 million homes annually, and had 7.3 million UK customers in 2024.
The company funds or builds new renewable generation capacity. Octopus Energy stated that it manages a global portfolio of renewable energy projects with a total capacity of 3.9 GW.
The company offers dynamic tariffs, which allow customers to switch their energy use to times when it's cheaper and greener. It offered a smart time-of-use tariff alongside electric vehicle (EV) tariffs.
The company was also noted for its support of renewable solar photovoltaic energy in the grid. Octopus Energy was found to pay customers a significant rate (more than 10 pence per kWh) for their surplus home-generated electricity.
What action is Octopus Energy taking on climate change?
Despite promoting the use of green energy, Octopus Energy attracts some criticism for its own climate change performance. The company’s major shareholders include Origin Energy, which is involved in gas exploration in Australia, and Japan’s largest natural gas supplier, Tokyo Gas.
However, Origin’s 22.18% shareholding in Octopus Energy, and Tokyo Gas’s 10.02% stake were both too small to affect Octopus Energy’s overall performance in our guide (which would require 25% or above).
Since his appointment to the Cabinet Office board in August 2025, Octopus Energy founder Greg Jackson has spoken in support of North Sea drilling.
However, Octopus Energy showed it was ready to improve the sustainability of its own operations. Last year, the company quadrupled its fleet of electric vehicles to 16,000. The company’s carbon reduction plan stated: “As most of our scope 1 emissions are from mobile combustion, they can be eliminated by switching petrol and diesel vehicles for electric vehicles charged with renewable electricity.”
The company said it planned to switch its facilities to 100% renewable electricity by 2030. Octopus Energy stated 100% of its electricity came from zero carbon sources – through PPAs with producers, and investing in renewable energy through its subsidiary, Octopus Energy Generation. The company aims to reach Net Zero by 2040 or sooner.
Is Octopus involved in lobbying?
Octopus Energy founder and current chief executive Greg Jackson has the Government’s ear. In August 2025, he became an adviser to the UK Government after Keir Starmer appointed him to the Cabinet Office board. This gives him influence over government policies.
Jackson has been a member of the Industrial Strategy Advisory Council. Jackson’s past directorships include six years at Labour Party-supporting news service, Labourlist.
According to Transparency International UK, Octopus Energy was one of the top 10 energy lobbyists between the 2024 General Election and 1 April 2025. The company met ministers and MPs 14 times, although the opaque UK system does not reveal what was discussed.
He has also argued for regional zonal pricing in the UK. This would see areas producing lots of energy have lower energy prices reflected in their bills, which would benefit people in Scotland in particular.
Tax avoidance
Octopus Group shows a high risk of tax avoidance. The company has two or more subsidiaries based in jurisdictions on Ethical Consumer's tax havens list. These subsidiaries did not appear to serve the local population, and the company failed to provide an adequate public country-by-country report, policy statement or narrative explanation.
These included subsidiaries described as conducting “fund management activities” based in Singapore, Luxembourg and Jersey.
Workers’ rights
In general, Octopus Energy does not perform well in our Company Ethos category. This was due to a combination of stakeholders being involved in gas exploration and extraction, and the company’s lack of transparency over Greg Jackson’s remuneration.
Octopus Energy’s performance on workers’ rights and human rights leaves room for improvement. In June 2025, the company attracted criticism for changing its workers’ contracts without prior consultation. The GMB union accused the company of increasing the working week of staff by five hours without payment for the extra work.
In September 2025, Octopus Energy signed a deal with Chinese wind turbine manufacturer Ming Yang Smart Energy. Among Ming Yang’s many subsidiaries are several operations in the Xinjiang region, where the Chinese government has systematically persecuted the Uyghur people.
The above text was written in autumn 2025 based on research in summer 2025.
Subscribe to see the full detailed stories about Octopus Energy.
See how Octopus Energy compares to other companies in our guide to energy suppliers.