Berliner Boersenzeitung - TotalEnergies in landmark greenwashing trial in France

It is the first such case in France targeting a major energy company and could set a legal precedent for corporate environmental advertising, which is starting to face tighter regulations in the European Union.

The civil case stems from a March 2022 lawsuit by three environmental groups accusing TotalEnergies of "misleading commercial practices" for saying it could reach carbon neutrality while continuing oil and gas production.

The plaintiffs took that legal route as "greenwashing", or the act of claiming to be more environmentally responsible than in reality, is not specifically covered under French law.

Starting in May 2021, TotalEnergies advertised its goal of "carbon neutrality by 2050" and touted gas as "the fossil fuel with the lowest greenhouse gas emissions".

At the time, the company had changed its name from Total to TotalEnergies to emphasise its investments in wind turbines and solar panels for electricity production.

The plaintiffs allege that TotalEnergies made around 40 "false advertisements" in their lawsuit.

"For the average consumer, it is impossible to understand that TotalEnergies is actually expanding fossil fuel production," said Clementine Baldon, a lawyer for the NGOs.

The company's strategy "will not help the energy transition", Baldon told the court.

"It delays it, even prevents it, and it contributes to putting the objectives of the Paris accord at risk," she added, referring to the international agreement aimed at curbing climate change.

TotalEnergies maintains it has not engaged in misleading commercial practices.

Moreover, it insists that the messages are part of its institutional communications regulated by financial authorities and not consumer law.

It has also argued the NGOs are misusing consumer protection rules to challenge its corporate strategy, and that no consumer organisation is party to the case.

The NGOs said the Paris court will rule on the legality of ads presenting natural gas as essential to the energy transition.

Climate experts say methane leaks from the gas industry have a powerful warming effect on the atmosphere.

- Correcting ads -

Environmental groups in recent years have turned to the courts to establish case law on companies misleading consumers by appearing more eco-friendly than they are.

In Europe, courts ruled against Dutch airline KLM in 2024 and Germany's Lufthansa in March over misleading consumers about their efforts to reduce the environmental impact of flying.

In Spain, utility Iberdrola failed to secure a conviction against Spanish oil and gas company Repsol over similar allegations of "false" environmental claims.

A greenwashing case against Australian oil and gas producer Santos, challenging its claim to be a "clean fuels" company, has been ongoing since 2021.

Other fossil fuel companies, under pressure from advertising regulators or legal complains, have had to scrap or correct ad campaigns.

Shell, for example, received a warning in the UK and had to stop promoting "carbon-neutral" gasoline in several countries, including Germany, the Netherlands and Canada.

New European laws now ban vague, generic environmental claims such as "green" or "100 percent natural" product, and aim to require brands to more strictly substantiate environmental claims on labels and in advertising.

TotalEnergies has said it plans to show that its messages "about its name change, strategy and role in the energy transition are reliable and based on objective, verifiable data".

(K.Müller--BBZ)