ESG Enforcement Tracker

Key facts:

Deutsche Umwelthilfe (DUH), a prominent German environmental group, applied for and obtained an injunction against Apple accusing the company of falsely promoting three models of its Apple Watch as “CO2-neutral”. Apple claim that the CO2 emissions caused by the production of their smartwatches are offset by compensation projects, such as a reforestation project in Paraguay.

DUH, however, argued that it is unclear whether these offsetting projects will in fact operate for the entire period during which the emitted fossil carbon remains in the atmosphere. The Frankfurt Regional Court found that Apple could not prove that all leases for its plantations in Paraguay would be renewed beyond 2029. The presiding Judge expressed a view that a consumer would assume Apple had secured CO2 compensation until at least 2050 for the products it advertises as being ‘carbon neutral’. As a result, the German court accepted DUH’s request for an injunction, which described Apple’s marketing campaigns as ‘blatant greenwashing’, and ruled that Apple’s advertising is misleading and violated German competition law.

Apple has said it stands by its claims that the Apple Watch is carbon neutral and maintains that it is ‘investing in carefully selected nature-based projects’. The company strongly disagreed with DUH’s position and has said ‘we remain laser focused on further reducing emissions’. The German decision is not binding until the outcome of any appeal by Apple. In the interim, however, Apple cannot use the contested statements in its adverts in Germany. This case follows a substantially identical lawsuit earlier in the year against Apple in the California courts which remains ongoing.  See our ESG tracker case update here.