Definition and manifestations of greenwashing Greenwashing describes the practice of companies presenting themselves to the public as more sustainable, environmentally friendly or ecologically responsible than is actually the case. This strategy usually involves misleading advertising measures, PR campaigns or vague statements about ecological measures which, on closer inspection, are either exaggerated or even untrue. Typical examples are advertising claims such as “climate-neutral production”, “ecologically degradable” or “environmentally friendly” without being able to substantiate these claims.

Legal classification and principles Greenwashing can be legally prosecuted as a misleading commercial act under the Unfair Competition Act (UWG). According to Section 5 UWG, advertising is misleading and therefore unlawful if it contains untrue or deceptive statements about key product characteristics, including environmental claims. For example, companies that claim climate neutrality without actually having effectively offset CO₂ emissions are committing a relevant misleading act and are therefore in breach of the UWG.

Current legal developments at national and EU level In Germany, the German Wettbewerbszentrale and consumer organizations in particular are increasingly active in taking action against cases of greenwashing and issuing warnings to affected companies. At the same time, efforts are being made at European level to introduce binding legal requirements to combat greenwashing. One key approach is the EU’s planned “Green Claims Directive”, which is intended to establish uniform standards for environmental advertising claims and their verifiability in order to better protect consumers and create legal certainty.

Consumer law aspects and information obligations In addition to competition law, consumer law regulations are also relevant, in particular information obligations from the Consumer Rights Directive. Products that are advertised with environmental or sustainability labels must provide transparent and comprehensible information on what such labels refer to. If these requirements are not met, consumer rights may be violated, which can lead to further legal consequences.

Relevance of stock corporation and capital market law Listed companies also have special obligations with regard to sustainability reporting under stock corporation and capital market law. The Corporate Social Responsibility Directive (CSR Directive) and its planned further development (Corporate Sustainability Reporting Directive, CSRD) require listed companies to disclose correct and verifiable sustainability information. Incorrect or misleading information on environmental and social criteria can lead to considerable liability risks for companies.

Practical implications for companies Companies are therefore well advised to back up their environmental and sustainability statements with verifiable facts and ensure the greatest possible transparency. It is advisable to set up clear internal processes for checking and approving such statements and to regularly monitor compliance with them. Otherwise, in addition to a loss of trust, there is also a risk of specific legal consequences, such as claims for injunctive relief and removal, warnings, claims for damages and fines.

Prevention and internal compliance measures An effective strategy for avoiding greenwashing is the introduction and implementation of robust compliance programs that critically review and document sustainability claims. Internal training, clear responsibilities and regular audits help to ensure compliance with legal requirements and to identify and minimize legal risks at an early stage.

Conclusion on the legal assessment of greenwashing Greenwashing entails considerable legal risks and is increasingly becoming a relevant compliance issue for companies. The legal requirements for the truthfulness and transparency of ecological statements are constantly growing, meaning that companies must work consistently to adapt their advertising and communication strategies accordingly. Ultimately, credible sustainability communication pays off not only in legal terms, but also in the form of a long-term gain in trust.