Big brands use eco-friendly labels to appeal to green customers, facing legal backlash. Researchers at the Grantham Research Institute identified a significant increase in climate-washing cases challenging corporate climate commitments from 2020 to 2022.
A national court in Denmark ruled that Danish Crown’s label of “climate-controlled” pork was misleading, but acknowledged climate-friendly claims. In the UK, the Competition and Markets Authority found that labelling products as recycled without specifying the amount of recycled content is misleading. A Dutch court banned KLM from using the slogan “fly responsibly,” and in New York, the Attorney General sued JBS for making false claims about reducing emissions without a viable plan.
Campaigners are using various national and international laws to combat climate change by holding governments accountable for failing to protect citizens’ rights to life. They have won cases in Germany and European courts while leveraging treaties like the Convention on the Rights of the Child to reduce emissions. A database at Columbia University Law School shows an increase in climate-related complaints, including against private entities for misleading advertisements.
Consumer demands for green and sustainable products are on the rise, with sales growing twice as fast as non-green products in the US. Companies face pressure to meet these demands authentically to capitalize on the market opportunity, although lawsuits can also discourage them from marketing their environmental efforts. Tensie Whelan emphasizes the need for genuine sustainability claims.
Companies often choose to downplay or deny allegations in order to minimize risks and protect their image. This was seen in the case of KLM and JBS, where legal actions and complaints were met with denials and disagreements. Danish Crown also faced scrutiny for its environmental impact, with pig farmers highlighting their efforts to reduce emissions. Overall, companies are cautious in their responses to legal and environmental concerns to maintain their reputation and sustainability goals.
Airlines are facing greenwashing lawsuits for misleading consumers with offset offers. An industry group argues that offsets will diminish as airlines improve efficiency and seek alternatives to jet fuel. Three cases in US courts involve airlines using terms like “carbon-neutral” and “sustainable.”
A climate advocacy group in Canada, Client Earth, filed a complaint against FortisBC for its advertising campaign on “renewable natural gas” derived from methane captured from farms and landfills. The advocacy group argues that the ads are deceptive as most gas supplied for home heating in British Columbia comes from fossil fuels. However, FortisBC defends its actions, stating their commitment to climate goals.
