Publication
06 Nov 2023 ·
Mexico
Germany: German Court decides on advertising of climate neutrality based on a CO₂ compensation by a forest conservation project
2 min read
On September 19, 2023, the Berlin Regional Court (LG Berlin) ruled – in a case concerning a well-known food delivery company – that advertising “climate neutrality” based on a CO₂ compensation by a forest conservation project in Kenya would be misleading (case no. 102 O 15/23).
While the consideration of compensation measures has traditionally been absent from previous rulings on sustainability claims, a notable shift has occurred in recent legal decisions. Specifically, the Karlsruhe Regional Court, in its ruling dated July 26, 2023 (case no. 13 O 46/22 KfH - environmentally neutral product), and now also the LG Berlin have taken a definitive stance on this matter. These court cases revolved around instances of advertising using the term “climate neutral” in conjunction with references to specific compensation projects, notably forest protection initiatives in Peru (Karlsruhe Regional Court) and Kenya (Berlin Regional Court).
In both instances, the courts arrived at a verdict, albeit with varying degrees of clarity, that the concept of “full climate neutrality” could not be substantiated solely through offsetting measures involving forest protection projects – especially as long as there are no recognized standards regarding the compensation of CO₂. The Berlin Regional Court argued that a forest conservation project in general does not enable the permanent and fully compensatory offset of the greenhouse gas-related emissions attributed to the product. As a result, advertising practices promoting such products were deemed misleading under § 5 of the Unfair Competition Act (UWG).
Furthermore, the Berlin Regional Court emphasized the necessity of more stringent information requirements when climate-related claims are employed within a complex interplay of effects. This recognition underscores the Courts' commitment to ensuring that environmental claims are accurate, transparent, and verifiable, thereby upholding consumer protection and safeguarding against deceptive practices in product marketing.
For more information on sustainability claims and greenwashing in Germany please see here.
