ESG Enforcement Tracker

Key facts:

The EC and CPC Network – comprising of EU Member States’ national consumer rights authorities – announced that they have written to 20 airlines identifying several types of potentially misleading green claims and inviting them to bring their practices in line with EU consumer law. This follows an alert to the CPC Network by the European Consumer Organisation (BEUC).

The investigation focuses on claims, made by airlines, that the CO₂ emissions caused by a flight could be offset by climate projects or with the use of sustainable fuels, to which the consumers could contribute by paying additional fees. Such practices may be considered as misleading actions/omissions, prohibited under Articles 5, 6 and 7 of the UCPD. The EC’s guidance note on the interpretation and application of the UCPD provides specific information about environmental claims which may be considered misleading (UCPD Guidance).

The European Commission and CPC Network have identified several types of potentially misleading practices by the 20 airlines, such as:

• 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;
• using the term “sustainable aviation fuels” (SAF) without adequately substantiating the environmental impact of such fuels;
• using the terms “green”, “sustainable” or “responsible” in an absolute way or use other implicit green claims;
• claiming that the airline is moving towards net-zero greenhouse gas emissions or any future environmental performance, without clear and verifiable commitments, targets and an independent monitoring system;
• presenting consumers with a “calculator” for the CO₂ emissions of a specific flight, without providing sufficient scientific proof of whether such calculation is reliable and without the information on the elements used for such calculation; and
• presenting consumers with a comparison of flights regarding their CO₂ emissions, without providing sufficient and accurate information on the elements the comparison is based on.

The European Commission and CPC Network invited the companies to provide a response within 30 days, outlining their proposals to address the concerns. After receiving their responses, it is anticipated that the organisations will meet to discuss the solutions proposed by the airlines. The Commission intends to monitor the implementation of agreed-upon changes. If the airlines fail to take necessary steps to resolve the concerns raised, the Members States’ authorities could take further enforcement action, including sanctions.

The press release also refers to the ECGTD, which comes into force in September 2026. The ECGTD will ban claims that a product has a neutral, reduced or positive environmental impact if this is achieved via the use of carbon offsetting schemes. It will also define the rules to follow when making claims about future environmental performance, including regular verification by an independent third-party expert and the publication of their findings.

Importantly, while the ECGTD (once in force) will provide more precise requirements with respect to a number of practices, the current investigation suggests that allegations of greenwashing may be already captured by the provisions of the UCPD.