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ARTICLE · 25 JULY 2024

Green Claims: German 'Climate-Neutral' Product Case

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Making claims about carbon reductions or "carbon neutrality" may seem an attractive way to distinguish a company for its sustainability work, but such claims are becoming riskier to make.

GermanyEnvironment
Marcus Navin-Jones
Marcus Navin-Jones
Juge Gregg
Juge Gregg
Benjamin Geisel
Benjamin Geisel

Making claims about carbon reductions or "carbon neutrality" may seem an attractive way to distinguish a company for its sustainability work, but such claims are becoming riskier to make. The last several years have seen a significant increase in litigation and regulatory requirements regarding such claims in the European Union, United Kingdom, United States and beyond. Continuing that trend, on 27 June 2024, the German Federal Court of Justice handed down a Judgment in a case concerning environmental claims. It is likely to have significant ramifications – particularly for companies making climate-related or carbon/greenhouse gas/emission – related claims in Germany. This German case is just one example of why any company considering such claims should carefully examine the regulatory, enforcement and litigation landscape in all relevant jurisdictions, while also being sure to carefully construct and substantiate the claims.

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