Attorneys Investigating Misleading Carbon Neutral Claims
There is more pressure than ever on corporate America to curb harmful carbon emissions and improve long-standing environmentally damaging business practices. As a result, many companies have made it a priority to reduce their so-called “footprint” with a range of carbon offsetting initiatives. Unfortunately, some companies have gotten a little overzealous; they have exaggerated their accomplishments and now face class action complaints over misleading carbon neutral claims.
Contact our legal team to learn more about ongoing class action greenwashing lawsuits and to understand the process of filing a deceptive marketing complaint. We are eager to hear from you and to guide you through the legal process. Our attorneys offer free case reviews for plaintiffs in all fifty states. Call for a free and confidential consultation.
What does it mean to be Carbon Neutral?
For companies providing a service or manufacturing consumer products, carbon neutrality is the idea of creating a balance between total carbon emissions and the absorption or removal of carbon from the atmosphere. So a net-zero carbon emissions business practice would suggest that for all carbon dioxide (as well as methane, nitrous oxide, and other hydrofluorocarbons) released into the atmosphere, the same amount of greenhouse gases are either removed or reduced with carbon capture methods.
It is expected that almost every large corporation set bold carbon neutral goals, but experts suggest that reaching these milestones can be quite difficult. In fact, some critics suggest many companies make inflated claims about their future goals without any intention of reaching them by that arbitrary date.
Some consumers are already suspect of companies that seek widely recognized sustainability certifications merely for show. It is no secret, of course, that public companies are facing pressure from stakeholders to demonstrate a commitment to being green. It is important to be perceived as environmentally friendly by not only consumers but also by investors and employees.
For large companies vigorously competing for low carbon emissions scores and to appeal to environmentally conscious consumers, achieving carbon neutral status is the ultimate objective. This is easier said than done, however, and there is much debate about how to accurately measure and monitor corporate carbon output.
Plaintiffs in some carbon neutral lawsuits have said companies often fail to disclose how they specifically calculate their carbon neutrality. It is good to be green, yes, but not at the expense of truthful and accurate sustainability reporting. It is important legally to stay within reason, to be realistic about what is possible in any chosen carbon offsetting program, and to refrain from touting any misleading carbon neutral claims.
What are some Carbon Neutral Greenwashing Lawsuits?
A company’s carbon footprint can either be reduced, or it can be offset to achieve their net-free carbon goals. With enough cash, any company can commit to purchasing carbon offset credits from voluntary or compliance marketplaces that are certified by independent third-party organizations. To offset emissions, companies can purchase carbon credits from forestry projects that may naturally trap carbon dioxide.
With their Green Guides, the Federal Trade Commission (FTC), in addition to consumer protection attorneys, help to keep tabs on marketing related to a company’s environmental sustainability claims.
Some companies have been under fire in recent years for getting ahead of themselves, and making unsubstantiated, undocumented claims about their carbon offsetting practices and often near-impossible sustainability goals. When corporations make false statements about their green initiatives or overstate the green benefits of their products or services, they may be held accountable in greenwashing lawsuits.
In 2022, a class action lawsuit brought against Danone suggested that there may be a widespread consumer misperception of what it means for a company to be carbon neutral. Plaintiffs alleged that most consumers would understand the term “carbon neutral”–a claim printed on Evian bottled water labels–would mean that the product is manufactured sustainably. Attorneys said the marketing was misleading because the manufacturing process does generate carbon emissions, and carbon offsets were simply purchased by the company to be technically in compliance. Lawyers also said consumers paid a price premium based on these alleged carbon neutral misrepresentations.
In 2023, a carbon neutral class action lawsuit named Delta Airlines as a defendant, alleging the airline of misrepresenting the environmental impact of its business by calling itself the “world’s first carbon-neutral airline.” Plaintiffs called into question the quality and the quantifiable impact of the carbon offsets.
Recently, Apple was hit with a greenwashing lawsuit that claims their Apple watches are not technically carbon neutral, as the company claims, because they relied on carbon offset projects that failed to quantifiably reduce the company’s total greenhouse gas emissions.
Apple said their Apple Watch Series 9, Apple Watch Ultra 2, and Apple Watch SE would be carbon neutral devices. But plaintiffs are alleging that Apple invested in unproven programs that failed to meet a basic standard for carbon offsets.
The Lyon Firm has filed numerous deceptive marketing lawsuits on behalf of clients nationwide, and we are actively investigating new greenwashing class action complaints. Contact our legal team to discuss a potential case, and to hold any negligent company accountable for any misleading carbon neutral claim.