COMBATING CORPORATE GREENWASHING THROUGH REGULATION

The document analyzes the 2023 Corporate Climate Responsibility Monitor (CCRM) findings for 24 global corporations, concluding that their net-zero targets are largely exaggerated and misleading. It highlights systemic issues such as over-reliance on low-quality carbon offsets, the exclusion of indirect emissions from carbon neutrality claims, and a lack of short-term ambition. To protect consumers, the brief recommends a complete prohibition of 'neutrality' claims in the EU, proactive enforcement by public regulators, and a shift toward a 'contribution claim' model for financing climate projects.

• The 24 global corporations assessed in the CCRM have an aggregate absolute emissions reduction pledge of only 36% by their target years (ranging from 2030 to 2050), despite claiming to be 'climate leaders' with net-zero targets.
• Corporate climate strategies rely heavily on carbon offsets, which are often of poor quality; for instance, up to 90% of credits from avoided deforestation projects may not provide real climate benefits, and renewable energy credits are often redundant.
• Many companies use 'creative accounting' to claim current carbon neutrality while excluding the vast majority of their emissions. On average, these claims cover only 3% of total emissions, with specific examples including Apple (excluding 99%), Microsoft (excluding 93%), and Google (excluding 58%).
• There is a significant gap in short-term ambition; the median absolute CO2 emission reduction target for 2030 (compared to 2019) among the assessed companies is only 15%, far below the approximately 50% reduction required to limit global warming to 1.5°C.
• More than half of the assessed companies (14 out of 24) use Renewable Energy Certificates (RECs) to claim renewable energy use, which the document describes as misleading because RECs do not guarantee the development of additional renewable energy capacity.
• Consumer understanding of climate claims is low; surveys in the Netherlands, Germany, and the UK indicate that consumers often struggle to distinguish between CO2 reductions and offsetting, frequently mistaking 'carbon neutral' claims for absolute reductions.
• The document recommends that EU policymakers adopt a total ban on all claims of climate or environment-related neutrality (e.g., 'carbon neutral', 'net zero') and that public agencies take a more proactive role in litigating greenwashing cases rather than relying on NGOs.
• The brief proposes a shift from 'offsetting' claims to a 'contribution claim' model, where companies communicate financial support for specific projects as a contribution to global targets rather than claiming to erase their own climate impact.

APA

Carbon Market Watch (2023). COMBATING CORPORATE GREENWASHING THROUGH REGULATION. https://carbonmarketwatch.org/wp-content/uploads/2023/02/CMW_CCRM2023_PolicyRecommendations.pdf

Chicago

Carbon Market Watch. COMBATING CORPORATE GREENWASHING THROUGH REGULATION. 2023. https://carbonmarketwatch.org/wp-content/uploads/2023/02/CMW_CCRM2023_PolicyRecommendations.pdf.

Wikipedia

{{cite report |author=Carbon Market Watch |title=COMBATING CORPORATE GREENWASHING THROUGH REGULATION |date=February 2023 |url=https://carbonmarketwatch.org/wp-content/uploads/2023/02/CMW_CCRM2023_PolicyRecommendations.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{carbonmarketwatch2023combating, author = {{Carbon Market Watch}}, title = {{COMBATING CORPORATE GREENWASHING THROUGH REGULATION}}, institution = {Carbon Market Watch}, year = {2023}, month = feb, url = {https://carbonmarketwatch.org/wp-content/uploads/2023/02/CMW_CCRM2023_PolicyRecommendations.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }