Greenwashing Lawsuits Against Major Oil And Gas Companies Are Getting The Green Light To Move Forward In Litigation

• Published date: 16 August 2022
• Subject Matter: Energy and Natural Resources, Energy Law, Oil, Gas & Electricity
• Law Firm: Foley & Lardner
• Author: Ms Rebecca L. Jordan and Katherine M. Harrington

Greenwashing Lawsuits Against Oil and Gas Companies'What Are They?

'Greenwashing' is the term for a company's exaggerated, misleading, or unsupported claims about its environmental practices. In the oil and gas industry, allegations of greenwashing typically arise when a company known for its production of fossil fuels makes claims that it is working to reduce its carbon footprint, advertising its use of renewable energy technology, or utilizing a marketing campaign illustrated with the color green, natural landscapes, and/or phrases such as 'eco-friendly.' You have probably seen these types of statements on billboards while driving down the freeway, on commercials while watching television, or even on social media while scrolling on your phone. Outside of advertising, some oil and gas companies have also made public commitments to reduce their investment in extracting fossil fuels.

To combat greenwashing, states, municipalities, and climate advocacy groups have been taking matters into their own hands'and into the courtrooms. In recent years, there has been a global uptick in lawsuits and complaints alleging that large oil and gas companies have deceived the public and made misleading statements about their impact on climate change. Until 2017, the total number of climate litigation cases numbered 884 across 24 countries, with 654 of the cases in the United States. But by 2020, this number nearly doubled to 1,550 cases across 38 countries.¹ Oil and gas companies are not alone in facing these types of lawsuits. Greenwashing lawsuits have also been brought against airlines, restaurants, banks, retailers, and car companies.

Greenwashing lawsuits typically assert causes of action including state and federal claims of unfair and deceptive trade practices, fraud, false advertising, and public and private nuisance. In one example, an environmental group lodged a complaint against one of the supermajor oil and gas companies for misleading the public with an advertisement that focused on its low-carbon energy products, when more than 96% of its annual spend was on oil and gas. In a more recent example, climate activists brought suit against a major oil and gas company, alleging that its rebranding marketing campaign was misleading to consumers for suggesting it could reach net-carbon emissions by 2050 while continuing to invest in fossil fuels. While many of these lawsuits are still in the early stages of litigation, courts have weighed in on two strategic...