As of today in France, Article L. 229-68 of the French Environmental Code now provides that it is forbidden to state in an advertisement that a product or service is carbon neutral or to use any wording of equivalent meaning or scope, unless the advertiser makes readily available to the public the following elements:
- A greenhouse gas emissions report that includes both direct and indirect emissions from the product or service;
- The process by which the product's or service's greenhouse gas emissions are first avoided, then reduced and finally offset. The greenhouse gas emissions reduction path is described using quantified annual progress objectives;
- The methods for offsetting residual greenhouse gas emissions comply with minimum standards defined by decree.
Therefore, an advertiser who claims in an advertisement that a product or service is "carbon neutral," "zero carbon," "zero carbon footprint," "climate neutral," "fully offset," "100% offset," or uses any language of equivalent meaning or scope must meet a number of very restrictive requirements for use.
Two decrees, No. 2022-539 of April 13, 2022 on carbon offsetting and carbon neutrality claims in advertising and No. 2022-538 of the same day on penalties, were issued to clarify these requirements.
These decrees set out multiple rules making the use of carbon claims complex and rigorous.
For example, it implies that the company must put in place numerous documents and assessments according to specific standards throughout the marketing of the product, the company will have to make easily available to the public (via an internet link or a QR-code on the packaging or advertising), a summary report describing in particular the carbon footprint of the product over its entire life cycle and the approach through which GHG emissions are avoided (as a matter of priority) or reduced, and failing that, offset. The report should contain the targeted GHG emissions reduction trajectory, described in terms of quantified annual progress targets over a minimum 10-year period.
The summary report must also be updated annually and the claim of neutrality cannot be maintained if it is found that the emissions associated with the product before offsetting have increased between two successive years.
According to article L. 229-69 of the Environmental Code, the administrative authority may sanction non-compliance with the prohibition and failure to meet the obligations set out in this section with a fine of €100,000 for a legal entity, which may be increased up to the full amount of the expenditure devoted to the illegal operation.
At a time when the public's environmental sensitivity has increased, the reputational risk involved is not negligible. Above all, environmental associations have taken up the companies' practices, not hesitating to denounce them to the Administration and in the press. More than ever, vigilance is therefore required.
