Greenwashing – when companies make misleading claims about their environmental credentials. Corporations from Ryanair to Shell have been called out in recent months for making false or unsubstantiated claims about their environmental impact to pull the wool over consumers’ eyes.
A climate activist group is urging the US Securities and Exchange Commission to investigate whether Shell Plc’s claims about its investments in renewable energy are misleading to investors by materially misstating its financial commitment to renewable sources of energy.
The Nanterre public prosecution office in France started investigations against oil and gas giant TotalEnergies in December 2021 for allegedly misleading commercial practice. The French multinational has been under fire from environmental NGOs for years, but this is the first time it faces formal prosecution regarding “greenwashing” practices.
Exxon Mobile has reported a 51 billion Euro profit in 2022, while alleging its commitment to sustainable energy is only 5%.
More needs to be done to encourage or compel companies which had profited enormously from the exploration of natural resources to commit significant resources to sustainable energy initiatives.