NGO and frequent activist Plaintiffs ClientEarth won a legal victory against oil and gas major TotalEnergies. TotalEnergies claimed in advertising that it was working towards the energy transition by increasing the production of clean energy and phasing out fossil fuels. However, ClientEarth challenged this narrative, arguing that the statements were misleading to consumers. The court found in favor of ClientEarth, who state in their press release:
“The Court ruled that the company has misled consumers in its advertising, by giving the impression that it is part of the solution to climate change despite continuing to promote and sell more fossil fuels.
Specifically, TotalEnergies claimed that it put ‘climate at the heart of its strategy, with the aim of providing cleaner, safer and more affordable energy to as many people as possible’ and that it had set the ambition to achieve net zero by 2050.
But the Court found that these claims were likely to mislead consumers because the company was continuing to increase its production and investment in oil and gas, at odds with scientific advice aligned with the Paris Agreement, which requires an immediate reduction in fossil fuel production.”
Ultimately, TotalEnergies must remove a statement about its 2050 net-zero goal and issue a corrective statement on its website. ClientEarth is hoping that this decision creates a ripple effect in other jurisdictions. However, others are more skeptical, noting that many of the lawsuit’s arguments were dismissed by the court.
It isn’t uncommon for companies tout their “net zero plans” while continuing to increase CO2 emissions. The problem extends beyond the fossil fuels industry. Multiple big tech firms increased their total emissions associated with AI data centers. Meanwhile, they make public ESG commitments and advertise their climate programs. If the French court’s reasoning becomes mainstream in legal circles, the dissonance could create significant greenwashing and litigation risk.
Our members can learn more about greenwashing here.
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