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Effects of the BGH ruling on climate-neutral companies and products
11/6/24Reading time:
The recent ruling by the German Federal Court of Justice (BGH) on advertising with climate neutrality has caused quite a stir in the corporate world. The BGH ruled that companies advertising their products as "climate neutral" must clearly and transparently explain how this climate neutrality is achieved. The case of the confectionery manufacturer Katjes in particular, which advertised with a "climate neutral" logo without explaining exactly whether this was achieved through CO₂ reduction or compensation, illustrates the explosive nature of the issue.
Challenges when advertisingclimate-neutral products
For many companies that offer climate-neutral products, the ruling poses a considerable challenge. The court demands a clear differentiation between the reduction of emissions and compensation through measures such as the purchase of certificates or the support of climate protection projects. However, the reality is different: It is currently hardly technically possible to make a product completely climate-neutral solely by avoiding emissions. Even the most efficient production processes and the use of renewable energies do not lead to zero emissions. The remaining CO₂ emissions can therefore only be offset through compensation measures.
Transparent communication for climate-neutral products
The importance of transparent communication when promoting climate-neutral products cannot be emphasized enough. Companies must ensure that their strategies for achieving climate neutrality are presented clearly and comprehensibly. Inadequate or misleading communication can lead to misunderstandings and legal consequences. Climate-neutral products should therefore always be advertised in such a way that it is clear whether climate neutrality has been achieved through reduction, offsetting or a combination of both approaches.
Sustainability as an opportunity for climate-neutral products
The BGH ruling also offers companies the opportunity to optimize their sustainability strategies and communication. At a time when the demand for carbon-neutral products is constantly growing, clear and transparent statements on climate neutrality can strengthen consumer confidence. Companies that are committed to implementing and promoting sustainability have the opportunity to position themselves as pioneers of the sustainable economy with their climate-neutral products.
Conclusion: Transparency is the key to success for climate-neutral products
The BGH ruling shows that companies that offer climate-neutral products or want to position themselves as climate-neutral need to rethink their communication strategies. Transparency is the key to building trust with consumers and avoiding legal risks. Companies that communicate their sustainability efforts clearly and comprehensibly can successfully establish themselves in the growing list of climate-neutral companies and consolidate their pioneering role in the field of CO2-neutral products.
