Summary
The document examines the rise of 'greenwashing' litigation related to plastics, where companies are challenged over misleading claims about recyclability, biodegradability, and corporate sustainability. It details a proliferation of class actions in the US and Canada, NGO-led challenges in the EU and US, and increasing enforcement by regulators like the FTC and CMA. The briefing also identifies an emerging 'second generation' of lawsuits brought by shareholders who allege financial losses resulting from deceptive environmental statements.
Key insights
- Plastic-related greenwashing litigation is proliferating in the US and Canada, primarily through class actions targeting the use of the term "recyclable" on packaging. For example, Keurig settled a US class action by agreeing to change its marketing and contributing US$ 10 million to a fund, while also facing a CA$ 3 million fine from Canadian regulators.
- NGOs and consumer protection organisations are actively challenging plastic claims in the US and EU. In Germany, courts found "climate neutral" labels on plastic bin bags to be misleading, and in France, Nespresso faced legal action over claims of carbon neutrality and 100% recyclability of coffee capsules.
- Regulators in the US, UK, and EU are increasing enforcement against misleading environmental claims. The US FTC is updating its "Green Guides" in 2022, while the UK's CMA is focusing on the fashion and fast-moving consumer goods sectors. In the EU, a 2021 screening found that 42% of green statements appeared to be "exaggerated, false or deceptive".
- There is a shift toward 'corporate reputational' greenwashing claims, where companies are sued for claiming to be "sustainable" while remaining dependent on single-use plastics. Examples include ongoing lawsuits against Coca-Cola and BlueTriton Brands.
- Shareholders are emerging as a new source of litigation risk, filing 'second generation' lawsuits alleging that misleading sustainability statements led to artificial share price inflation and subsequent financial losses. This is exemplified by pending securities and derivative actions against Danimer Scientific following criticisms of its biodegradability claims.
- Competitor companies are increasingly using consumer protection and unfair competition laws to challenge the sustainability claims of rivals to prevent them from gaining an unfair competitive advantage.
Cite the original document
- APA
- ClientEarth (2022). Plastics on trial. https://www.clientearth.org/media/pfzkp4e4/plastics-on-trial-1-greenwashing.pdf
- Chicago
- ClientEarth. Plastics on trial. 2022. https://www.clientearth.org/media/pfzkp4e4/plastics-on-trial-1-greenwashing.pdf.
- Wikipedia
- {{cite report |author=ClientEarth |title=Plastics on trial |date=September 2022 |url=https://www.clientearth.org/media/pfzkp4e4/plastics-on-trial-1-greenwashing.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{clientearth2022plastics, author = {{ClientEarth}}, title = {{Plastics on trial}}, institution = {ClientEarth}, year = {2022}, month = sep, url = {https://www.clientearth.org/media/pfzkp4e4/plastics-on-trial-1-greenwashing.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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