Green claims under scrutiny: greenwashing disputes in Germany on the rise

With the rise of consumer concern for the environment, companies are increasingly using eco-friendly branding as ‘climate-neutral’ or ‘sustainable’ to appeal to consumers. This increase has resulted in a corresponding rise in greenwashing accusations, which has in turn led to a new set of climate litigation. Risks associated with green claims threaten to intensify as lawmakers and regulators step up efforts to combat greenwashing. In this context, on 23 March 2023, the European Commission (EC) proposed a new Directive on Green Claims requires companies to back up green claims about their products with evidence. If adopted, the Directive will pose new challenges for companies and provide an additional basis for greenwashing disputes.