Greenwashing: surges in legal actions against misleading environmental claims

In recent years, there has been a marked increase in the number of lawsuits against companies accused of "greenwashing", i.e. misleading consumers about the environmental benefits of their goods or services. In recent decades, companies have found a substantial financial incentive to appear sustainable and socially responsible, as consumers have become increasingly concerned about making environmentally and socially responsible choices. This has led to a rise in greenwashing, and the increase in legal cases reflects a growing intolerance of misleading environmental marketing and a demand for corporate transparency and accountability.

ClientEarth's greenwashing cases

ClientEarth is one of the leading environmental law organisations tackling greenwashing. In 2022, ClientEarth helped to bring forward the world's first aviation greenwashing case, with KLM confirming during a hearing in 2023 that it would scrap its false 'Fly Responsibly' advertising campaign. Another important legal action is the greenwashing case against TotalEnergies, where ClientEarth and other NGOs are suing the French oil giant for misleading the public about its 'net zero' commitments. The lawsuit argues that TotalEnergies falsely presents its climate strategy as being in line with the Paris Agreement, while continuing to expand fossil fuels.

A recent complaint filed in October 2024 targets BlackRock, the world's largest asset manager. This is ClientEarth's first greenwashing complaint against a financial institution. ClientEarth argues that BlackRock has misled investors by marketing certain investment products as 'sustainable' while holding significant investments in fossil fuel companies. An analysis by Reclaim Finance found that 18 of BlackRock's actively managed retail funds marketed as sustainable in France collectively hold over $1 billion in fossil fuel investments, including stakes in ExxonMobil, Shell, Chevron, BP and TotalEnergies. ClientEarth is calling on the French financial regulator, the Autorité des Marchés Financiers (AMF), to investigate these practices and to oblige BlackRock to either realign its funds with genuine sustainability criteria or stop labelling them as such.

Regulatory crackdown on greenwashing in the EU

Regulators across Europe are increasing their scrutiny of greenwashing practices and enforcing stricter transparency standards. For example, the European Securities and Markets Authority (ESMA) has issued guidelines requiring funds that use ESG or sustainability terms to allocate at least 80% of their assets to investments that meet mandatory ESG objectives. These guidelines aim to increase transparency and prevent misleading claims in the financial sector.

The EU Green Claims Directive, currently being negotiated between the Council of the European Union and the European Parliament, aims to combat greenwashing by ensuring that environmental claims made by companies are substantiated and communicated transparently. Once adopted, it will require companies to verify their environmental claims through independent assessments, promoting greater accountability and consumer confidence. In contrast, the EU Corporate Sustainability Reporting Directive (CSRD) mandates that companies disclose detailed information on their environmental, social and governance (ESG) practices. While both directives aim to improve corporate transparency and environmental responsibility, the Green Claims Directive aims to specifically target the accuracy of environmental claims in marketing, while the CSRD focuses on comprehensive sustainability reporting within corporate reporting. These initiatives are changing the landscape of corporate sustainability marketing by imposing legal accountability for unsubstantiated claims.

In addition to regulatory action, legal challenges to corporate greenwashing are growing. One example is case 2024 Deutsche Umwelthilfe v. Apple Distribution International Ltd, in which the German environmental group Deutsche Umwelthilfe is challenging Apple's promotion of its Apple Watch as "carbon neutral". The case raises concerns about the accuracy and substantiation of Apple's carbon neutrality claims and reflects a wider trend of legal challenges to misleading sustainability claims in the European market.

The rise of greenwashing litigation marks a critical shift towards greater accountability in corporate environmental claims. Companies are now more likely to face legal challenges if they fail to substantiate their sustainability claims. This evolving legal landscape underscores the importance for companies to ensure that their environmental marketing is accurate, transparent and reflects genuine sustainable practices.

The legal risks associated with greenwashing are growing as consumers, investors and regulators continue to demand integrity in environmental claims. Companies need to tread carefully and recognise that misleading environmental marketing can result not only in reputational damage, but also in significant legal consequences. While this is a huge topic and this newsletter is just a tiny snapshot feel free to share your thoughts on future greenwashing cases and what legal actions to watch out for in 2025.

References & further readings:

1. ClientEarth. "Greenwashing." Available at: https://www.clientearth.org/what-we-do/greenwashing/
2. ClientEarth. “Environmental Groups Sue TotalEnergies for Misleading the Public Over Net Zero.” (2023). Available at: https://www.clientearth.org/latest/press-office/press-releases/environmental-groups-sue-totalenergies-for-misleading-the-public-over-net-zero/
3. ClientEarth. “ClientEarth's complaint to the AMF on BlackRock's misleading marketing claims.” (2024). Available at: https://www.clientearth.org/latest/documents/clientearths-complaint-to-the-amf-on-blackrocks-misleading-marketing-claims/
4. Climate Court. "Greenwashing Accusations: ClientEarth Targets BlackRock’s Fossil Fuel Investments in ‘Sustainable’ Funds." (2024). Available at: https://www.climate-court.com/post/greenwashing-accusations-clientearth-targets-blackrock-s-fossil-fuel-investments-in-sustainable-f
5. Sabin Centre for Climate Change Law (2025). Climate Case Chart. Non-US Case Category. Misleading Advertising. Available at: https://climatecasechart.com/non-us-case-category/misleading-advertising/
6. Sabin Centre for Climate Change Law (2025). Climate Case Chart. U.S. Litigation Greenwashing. Client Earth v. Washington Gas Light Co. Available at: https://climatecasechart.com/case/client-earth-v-washington-gas-light-co/
7. European Securities and Markets Authority (ESMA). "Guidelines on Funds’ Names Using ESG or Sustainability-Related Terms." Available at: https://www.esma.europa.eu
8. European Commission. "Green Claims Directive: Towards Transparent Environmental Marketing." Available at: https://environment.ec.europa.eu/topics/circular-economy/green-claims_en
9. Council of the EU (2024). Green Claims Directive: Council Ready to Start Talks with the European Parliament. Available at: https://www.consilium.europa.eu/en/press/press-releases/2024/06/17/green-claims-directive-council-ready-to-start-talks-with-the-european-parliament/
10. Photo by micheile henderson from Unsplash