ESG Enforcement Tracker

Key facts:

AGCM has issued an €8 million fine to the GLS logistics group for acting with insufficient transparency in the organisation, funding and promotion of its “Climate Protect” initiative and failing to ensure the initiative met the standards demanded from operators in highly polluting sectors such as transport and logistics.

The fine is to be paid jointly between General Logistics System B.V., the European parent company of GLS group, General Logistics Systems Italy S.p.A and General Logistics Systems Enterprise S.r.l..

The AGCM noted that consumer behaviour is increasingly impacted by environmental considerations and a company’s reputation on such issues. In this context, environmental statements made on the websites of the three GLS companies above and on carbon offset certificates issued by these companies were found not to be sufficiently clear, specific, accurate, clear-cut and verifiable.

In addition, General Logistics Systems Enterprise forced all but its top customers to pay an unverified contribution for carbon offset certificates in respect of their deliveries, on the understanding that GLS would also be contributing significantly to the program’s funding. In fact, these costs were borne entirely by GLS Italy’s logistics partners and subscribed customers, with GLS making more money from the Climate Protect initiative than it paid to implement the program.

The conduct of GLS was found to amount to unfair commercial practices in breach of Articles 20-22 and 26(f) of the Italian Consumer Code.