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TheCorporateCounsel

TheCorporateCounsel.net

A basis for research and practical guidance focusing on federal securities laws, compliance & corporate governance.

DealLawyers

DealLawyers.com

An educational service that provides practical guidance on legal issues involving public and private mergers & acquisitions, joint ventures, private equity – and much more.

CompensationStandards

CompensationStandards.com

The “one stop” resource for information about responsible executive compensation practices & disclosure.

Section16.net

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Widely recognized as the premier online research platform providing practical guidance on issues involving Section 16 of the Securities Exchange Act of 1934 and all of its related rules.

PracticalESG

PracticalESG.com

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

Back in 2023, Apple made sustainability news with a flashy ad touting its new line of “carbon-neutral” Apple Watches. At the time, I raised concerns about litigation risks posed by the bold statement. Sure enough, the company was hit with a class action greenwashing suit in California, where plaintiffs argued that the carbon offsets backing the neutrality claim were of poor quality. Now Apple’s hard-fought “carbon-neutral” labeling is disappearing from the company’s products, but it isn’t due to the litigation. Fast Company reports:

“The change isn’t due to a shift in Apple’s environmental efforts. Rather, a new EU law is forcing the issue: by September 2026, companies will no longer be allowed to use claims like ‘carbon neutral’ or ‘climate neutral’ on packaging, ads, or product pages. Critics say such terms risk misleading consumers. Apple agrees that strong standards are important—but argues it is losing a way to highlight genuine progress in cutting emissions.”

The EU law driving the change is the Directive Empowering Consumers for the Green Transition Through Better Protection Against Unfair Practices and Better Information, which bans all claims of carbon neutrality based on offsetting. Back in 2023, when the EU Parliament passed the law, I was concerned about this very outcome. By and large, Apple’s decarbonization efforts are commendable. The company claims to have reduced carbon emissions by 75% in the production of its Apple watches. That remaining 25% covered by carbon offsets is hard to abate emissions with which any company would struggle. Now, Apple is without an easy means to convey this progress to consumers.

Despite the ban on marketing their products as “carbon neutral,” Apple has no plans to change its practices; only its marketing will be impacted. Industry leaders will have to find new, more precise ways of communicating their decarbonization progress with the new EU law taking effect in 2026.

Our members can learn more about sustainability claims and greenwashing here.

If you’re not already a member, sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. But it will probably pay for itself before then.

Members also save hours of research and reading time each week by using our filtered and curated library of ESG/sustainability resources covering over 100 sustainability subject areas – updated daily with practical and credible information compiled without the use of AI.

Are you a client of one of our Partners – SourceIntelligence, TRC, Kumi, Ecolumix, Elm Consulting Group International or Impakt IQ? Contact them for exclusive pricing packages for PracticalESG.

Practical Guidance for Companies, Curated for Clarity.

Image credit: misu – stock.adobe.com

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The Editor

Zachary Barlow is a licensed attorney. He earned his JD from the University of Mississippi and has a bachelor’s in Public Policy Leadership. He practiced law at a mid-size firm and handled a wide variety of cases. During this time he assisted in overseeing compliance of a public entity and litigated contract disputes, gaining experience both in and outside of the courtroom. Zachary currently assists the PracticalESG.com editorial team by providing research and creating content on a spectrum of ESG… View Profile