CALLING OUT CORPORATE GREENWASHING

Going to court is expensive, but there are other ways to challenge emitters. In December 2019, lawyers at the legalenvironmental NGO ClientEarth filed a complaint to the OECD claiming that BP’s worldwide ad campaigns for its low-carbon energy products were misleading, given that 96 per cent of BP’s annual spend is actually on fossil fuels. The OECD decided that ClientEarth’s complaint was material and substantiated; however, the complaint didn’t proceed because BP had already decided to withdraw the offending ads. We’re likely to see many more similar complaints in the future. With investors demanding greater commitments around ESG (environmental, social and governance factors) and consumers increasingly ready to switch brand loyalty for greener goods, the temptation for companies to greenwash has never been greater. ClientEarth has compiled a set of ‘Greenwashing Files’ that call out several other energy companies whose ads mislead consumers. The need for this type of vigilance around corporate greenwashing is only likely to become more acute.