It's not rare to find items on store shelves advertised as 'carbon neutral' or 'eco-friendly.' However, such assertions aren’t always transparent or supported by proof—leading courts to compel businesses to remove these claims.
Over the past three years, the German non-profit organization Deutsche Umwelthilfe (DUH) has been actively involved in legal battles against greenwashing, successfully preventing over 100 companies from promoting their goods or business practices as environmentally friendly. This includes manufacturers of items like shower gels and sneakers, along with operators of cruises and airlines.
Agnes Sauter, who leads ecological market surveillance at DUH, notes that firms are progressively promoting their goods and offerings based on claimed eco-friendly advantages as consumers grow more conscious of the consequences of their purchases.
However, these assertions do not always withstand careful examination. A 2020 report from the European Commission revealed that over fifty percent of environmental claims within the EU were imprecise, deceptive, or baseless, with forty percent lacking proper substantiation.
“ Greenwashing Has emerged as an increasing issue that deceives customers and impedes genuine advancement in climate preservation and the responsible utilization of resources," states Sauter.
What firms have faced accusations of greenwashing?
Even though DUH had been lodging accusations of greenwashing since May 2022, the organization intensified its efforts last year after the Federal Court of Justice (BGH) ruled against candy manufacturer Katjes.
The court determined that vague phrases such as 'climate neutral'—which might indicate that a business has genuinely reduced its emissions or simply purchased contentious offsets—should be interpreted with caution. carbon offsets - Would be permitted only if thoroughly described in the advertisement itself.
Over just the past several months, DUH has addressed approximately 20 firms regarding their promotional assertions under Germany’s Anti-Unfair-Competition Law. They have argued that crucial details are lacking or have challenged these businesses to demonstrate that the climate-protection initiatives used for achieving carbon-neutrality genuinely fulfill their stated objectives.
Sauter states that the non-profit views itself as a champion for consumers because accurate details regarding a product’s quality allow people to make well-informed choices when buying.
The judges have shown understanding. Recently, last month, sportswear company Adidas was instructed to cease promoting that they would achieve 'carbon neutrality by 2050,' as they failed to adequately explain their approach for reaching this target.
Environmental protection has become a growing concern for customers, influencing both media coverage and daily routines," states the Cologne Regional Court. "Consequently, promoting a business or its offerings as supposedly environmentally neutral can greatly affect consumer choices.
Adidas stated that the decision pertains solely to "certain phrasing" on their website, which has now been updated.
Promises of climate neutrality might mislead or perplex consumers.
Sauter states that when corporations declare they will become CO2 or climate neutral in the upcoming years, it gives an appearance of sustainable and responsible behavior. However, he argues that "in most instances, this is merely obvious deceit of consumers."
She states that these measures are typically outlined ambiguously and can be challenging or nearly impossible to validate. "These marketing statements ought to be convincingly supported and communicated in a manner clear to customers. We believe that anything less constitutes significant greenwashing and needs to be halted right away."
Aviation group Lufthansa , which has its headquarters in Germany, was additionally prohibited by the Cologne Regional Court in March from promoting that passengers could 'offset' their carbon emissions from flights. The advertisements misleadingly suggested that making a payment would render air travel entirely carbon-neutral.
DUH previously achieved a comparable legal win specifically against an airline. Eurowings , operated by Lufthansa. The company has stated that they are closely reviewing the recent decision.
Last year, the Hamburg Regional Court supported a greenwashing case against Shell Germany.
DUH contended that providing customers with the choice to neutralize emissions from fueling their vehicles with petrol or diesel created a false notion that driving would have no ecological consequences. This was due to the fact that these offsets were sourced through carbon credits derived from conservation initiatives for forests in Peru and Indonesia.
Shell Germany stated that the ruling compelled them to cease CO2 offsetting activities and halt the sale of Shell Helix bottles featuring the 'CO2-neutral' logo.
In a similar vein, the Karlsruhe Regional Court determined that consumers were misled by TUI Cruises' advertisement claiming their cruises would become carbon-neutral by 2050.
Several of DUH's assertions focus on particular items. After winning their case, the home improvement retailer Obi was informed that they are not allowed to promote a wall paint as 'climate-neutral'.
Taking legal action sends a 'clear message' to companies engaged in greenwashing.
Several of these cases remain open to appeals, and DUH will ensure that all final decisions are adhered to. In 2023, it implemented an injunction after prevailing against pharmacy chain dm for deceiving customers with the phrases 'climate neutral' and 'environmentally neutral' on certain items.
When the company began to advertise again with the new slogan 'act environmentally neutral', DUH launched fresh legal actions until DM agreed to discontinue its use as well.
Several of DUH’s legal claims are still pending, and some might be subject to appeal. However, according to Sauter, most of the firms they have issued legal threats to have opted to withdraw their specific actions. advertising assertions and declared that they would cease.
This encompasses gas providers who promoted fossil gas as being climate-neutral green energy, a Bauhaus Group entity that publicized a disposable barbecue made from '100% natural components,' and Poco furniture outlets that touted a chair as eco-friendly.
Sauter states that DUH’s initiatives had a "significant signaling impact" and noted that promoting themselves as climate neutral through offsets has "quickly declined."
Regulators are also taking action against greenwashing in Europe.
And DUH is still not finished. It has recently issued cease-and-desist orders to five firms they say promote eco-friendly attributes without offering details: Coty regarding their 'ocean-safe' sunscreens; Deichmann and Tchibo concerning footwear and apparel promoted as 'eco-conscious'; Toom, the home improvement retailer, related to flooring advertised as 'environmentally friendly'; and L'Oreal pertaining to their 'commitment to sustainability'.
DUH's successes are solely applicable to business operations within Germany However, Sauter notes that competition law falls under the purview of the European Union, which means that if a German court deems an advertisement as deceptive, there’s a strong likelihood that a court in another EU member state would concur.
Regulators have also been stepping up their efforts against greenwashing. For instance, the UK's Advertising Standards Authority (ASA) had earlier prohibited an advertisement by Lufthansa For spreading unverified statements about the climate. And both the ASA And the Netherlands' counterparts have instructed Shell and its affiliates to remove advertisements that mislead about their environmental efforts.
DUH is now urging Germany’s newly elected government to establish stricter guidelines and penalties for deceiving consumers. The administration is already obligated to enact new European Union regulations designed to strengthen consumer rights during the shift towards sustainable practices. Additionally, they may soon need to enforce a proposed measure. greenwashing The anticipated law aims to address issues at both the product and corporate level complaints.
Sauter states that sustainability should not merely serve as a marketing tactic but must result in genuine enhancements in product design. "Indeed, with the ongoing climate crisis, sincere efforts towards protecting the environment are critically necessary and can only benefit from stringent regulations."