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PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

Preventing greenwashing may require companies to provide very detailed information about their operating practices if a new class action lawsuit against Procter & Gamble is successful. According to Packaging Insights,

“Hagens Berman, a class-action law firm headquartered in Seattle, US, has filed a lawsuit against Procter & Gamble (P&G), the parent company of Charmin toilet paper. The lawsuit alleges that Charmin’s packaging makes unsubstantiated sustainability claims, including the misleading use of the Rainforest Alliance frog seal.

It also claims that P&G engages in undisclosed wood-sourcing practices, such as clear-cutting and chemical herbicide use.

‘As alleged in our complaint, P&G fails to disclose that its suppliers are replanting single species conifers, evenly spaced and then covering these trees with chemical herbicides to intentionally eliminate all growth other than just a handful of tree species most valuable for logging,’ Steve Berman, a managing partner at Hagens Berman [said].”

The law firm published a summary of its claims against the company, which are:

  • Charmin sources its wood pulp via industrial logging practices such as clear-cutting and burning.
  • Charmin suppliers are systematically converting critically important old-growth forests into environmentally devastating “Frankenforests.”
  • Only a fraction of its wood pulp is sourced from FSC-certified forests.
  • The Rainforest Alliance continues to provide certification to Charmin products.

The suit makes noise about seeking potentially big bucks: “monetary payback for purchases consumers wouldn’t have made had they known the truth behind Charmin toilet paper and seeks to end Charmin’s greenwashing of its products.” Determining how many actual purchasers were specifically influenced by Charmin’s label and claims will be challenging to say the least. Further, once that is determined, it may be a much smaller universe of buyers than expected.

The far more likely scenario is that P&G will settle this out of court and make changes to its label and claims. Other companies may follow the example – and preemptively reduce similar class action risk.

Members can learn more about greenwashing risk here.

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The Editor

Lawrence Heim has been practicing in the field of ESG management for almost 40 years. He began his career as a legal assistant in the Environmental Practice of Vinson & Elkins working for a partner who is nationally recognized and an adjunct professor of environmental law at the University of Texas Law School. He moved into technical environmental consulting with ENSR Consulting & Engineering at the height of environmental regulatory development, working across a range of disciplines. He was one… View Profile