With rising customer consciousness of climate change and environmental topics, the last years have seen a steep increase of environmental claims in marketing. "Greenness" clearly sells – from banking services and investment products to airplane travel, electric cars and fuel and from washing detergents to smoothies and baby food. This has led to increased scrutiny from regulatory authorities and policymakers around the globe. On 27 June 2024, the highest German civil court (the German Federal Court of Justice or Bundesgerichtshof, the BGH)) delivered a groundbreaking verdict against fruit gum manufacturer Katjes, laying down the limitations and requirements for the use of the term "climate neutral" (klimaneutral) in product advertising.1 This briefing describes the background and content of the Katjes ruling, how it aligns with judgments and regulatory practice in other countries, how policymakers are trying to tackle the issue and, most importantly, what companies can do to protect themselves against the consequences of unsubstantiated green claims.
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