Several energy retailers are still labelling their power plans "carbon neutral" despite legal action forcing one of their competitors to apologise for the practise.

Environmental advocates Parents for Climate have issued a "wake-up call and invitation" to 13 energy retailers identified as using carbon offsets to market their products.

The findings follow legal challenge by the climate advocates that resulted in EnergyAustralia conceding "offsets do not prevent or undo the harms caused by burning fossil fuels", a case brought amid growing scrutiny of the integrity of carbon credits and the way they are used.

The "worst offenders", in Parents for Climate chief executive officer Nic Seton's view, claim their products are "carbon neutral" due to the purchase of offsets.

"Why that's a probl

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