EU Regulators Announce Greenwashing Investigation of 20 Airlines

The European Commission and EU consumer authorities have sent letters to 20 airlines “identifying several types of potentially misleading green claims,” focusing on “claims made by airlines that the CO2 emissions caused by a flight could be offset by climate projects or through the use of sustainable fuels.”  Notably, the authorities highlighted that “the airlines have yet to clarify whether such claims can be substantiated based on sound scientific evidence.”  The regulators further identified particular items of concern among the statements made by the airlines, including: (1) “claiming that the airline is moving towards net-zero greenhouse has emissions (GHG) or any future environmental performance, without clear and verifiable commitments, targets and an independent monitoring system”; (2) “creating the incorrect impression that paying an additional fee to finance climate projects with less environmental impact or to support the use of alternative aviation fuels can reduce or fully counterbalance the CO2 emissions”; (3) “using the term ‘sustainable aviation fuels’ (SAF) without clearly justifying the environmental impact of such fuels”; and (4) “using the terms ‘green,’ ‘sustainable’ or ‘responsible’ in an absolute way or use other implicit green claims.”  In effect, the EU authorities appear to be principally focused on statements made by the airlines implying that environmental concerns are being addressed despite the lack of concrete action or other support for such claims--the classic paradigm of greenwashing.     

This action taken by the EU demonstrates the increased focus on combatting greenwashing by various regulators (including the SEC and the UK's FCA), and the rise of enforcement actions in connection with such issues.  Further, the fact that this investigation concerns airlines indicates that particular sectors of the economy--likely transportation and energy--can expect greater scrutiny, due to the greater connection of their activities to global climate change.