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3 min read


AIRLINE GREENWASHING CALLED OUT BY EU AS MISLEADING

ResourceWise : May 3, '24

ESG SAF Decarbonization


The European Union has taken a decisive step in its battle against greenwashing,
initiating action against 20 airlines for their false sustainability claims.
This action targets the airlines' misleading assurances that CO2 emissions can
be offset by additional fees toward climate projects or the use of sustainable
aviation fuel (SAF).

The EU Commission and the Network of Consumer Protection Cooperation (CPC)
Authorities requested airlines to align their practices with EU consumer law.
They also warned them of potential enforcement actions and penalties for
non-compliance.

This strong stance was triggered by a complaint filed last year by the European
Consumer Organisation (BEUC), which demanded an end to misleading
climate-related claims by several European airlines.


GREENWASHING, CO2 AND MISDIRECTION

The CPC, overseen by various European consumer authorities, believes the
airlines' practices could be misleading. It highlights that such potentially
deceptive practices breach three articles of the EU's Unfair Commercial
Practices Directive. The challenge was that airlines have not substantiated
these claims with scientific evidence.

The CPC identified six possible areas of misleading practices. These include
giving the false impression that additional fees for climate projects or SAF can
neutralize or reduce CO2 emissions.

The CPC also raised concerns about the use and impact of the term ‘SAF’ by these
airlines. It may mislead public perceptions into thinking the airlines' total
emissions are lower than actually measured.

The misuse of terms such as 'green' and 'sustainable' was also flagged. This was
due to the airlines using them in an absolute sense, suggesting that their
operations are ecologically friendly.

Certain airlines have also claimed to be on the path to achieving net-zero
emissions. However, they have yet to provide clear, verifiable commitments,
targets, or independent monitoring.

> Related: EU Sets Rules to Regulate ESG Ratings, Crack Down on Greenwashing


FLIGHT CO2 EMISSIONS CALLED INTO QUESTION

Questions were also raised about the scientific proof behind CO2 calculators for
specific flights used by airlines as well as comparisons of flights' emissions
without sufficient supporting evidence.

The EC and CPC have not publicly named the 20 implicated airlines but have
invited them to rectify the issues within a month. If appropriate action is not
taken, further enforcement, including sanctions, could be considered.


MISLEADING CLAIMS: A PERSISTENT PROBLEM FOR THE AIRLINE INDUSTRY?

This is not the only organizational scrutiny the airline industry has seen
recently.

The UK's Advertising Standards Agency has also taken action against several
airlines for greenwashing violations following the UK's exit from the EU in
February 2020. Multiple instances of greenwashing offenses have come to light
recently, with Dutch and Austrian courts finding KLM and Austrian Airlines,
respectively, of misleading their customers about flight sustainability.

The EU strongly condemns these practices, stating that airlines cannot falsely
claim to be sustainable, green, or responsible without clear targets and
commitments. The emissions data must also undergo independent verification using
evidence-based, scientific procedures.

In response to this airline probe (amongst other misleading corporate
greenwashing), the EC is taking action. The organization has proposed a series
of legislations to protect consumers from fraudulent green claims.

Věra Jourová, EU Commission Vice-President for Values and Transparency,
emphasized that consumers deserve accurate information about their environmental
footprint. Accordingly, they should not be misled by vague or false claims.

The Commission is resolved to empower consumers in the green transition and
counteract greenwashing.


GETTING HONEST ABOUT EMISSIONS

Developments such as this one bring the issue of corporate dishonesty
front-and-center.

On one side of the equation, airlines assuredly set ambitious SAF adoption and
decarbonization targets. But on the other side, corporate pressures and the
reality of current technology may lead to ambiguity or downright
misrepresentation.

Airlines putting out their own carbon emissions claims opens up the risk of data
ambiguity at best and misrepresentation at worst.

The most glaring issue is that every corporation could have a different process
on how they collect, codify, and account for carbon data. A lack of consistency
opens the door to the very issue called out by the EU Commission and CPC. This
is exactly where the trouble with greenwashing can occur.

Organizations like the Science Based Targets initiative (SBTi) help to
standardize CO2 reduction and accurate emissions reporting. But the current
shakeup within that organization due to a recent announcement about carbon
credits has the group’s credibility called into question.

> Read More: SBTi Disruptions Continue to Cause Confusion About Decarbonization

Despite the SBTi’s current issues, the only path forward is through the types of
standards put forth by the group. Accurate, evidence-based emissions reporting
and decarbonization strategizing are fundamental to progress.

The truth of the matter is that greenwashing does not advance anyone closer to
the actual objective of stopping the planet’s climbing average temperatures—and
the disastrous climate effects that follow. Scrutiny like the EU Commission’s
warning to these airlines will hopefully reinforce the importance of
understanding this very real problem we’re all working to solve.


GET THE DATA AND INSIGHTS YOUR BUSINESS NEEDS TO SUCCESSFULLY DECARBONIZE

Disruptions within the SBTi have caused considerable concern among many
businesses looking to decarbonize. Uncertainty could lead to confusion,
frustration, and other challenges in your planning. That's why partnering with a
trusted market intelligence firm like ResourceWise is paramount.

ESG reporting serves as the backbone of all forthcoming mandates and
requirements. Now more than ever, your business must understand how these
factors will impact your operations.

ResourceWise's newly-released A to Z Guide: ESG Reporting Landscape provides an
extensive reference for ESG compliance and reporting. The guide can help you to
recognize the challenges your business will face in the ongoing carbon
transition. The insights can help you to develop a grounded, evidence-based
pathway to reduce your carbon footprint across the value chain.

You can get the A to Z Guide: ESG Reporting Landscape as a standalone product or
together with the Carbon Mitigator report from ResourceWise. With essential
pricing information on low-carbon fuels as well as expert advice from the
industry, the Carbon Mitigator helps you to stay informed about everything
you'll need to know.

Follow the link to download a preview of the guide and see all the ways
ResourceWise can help your business’s decarbonization journey.

DOWNLOAD PREVIEW

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AIRLINE GREENWASHING CALLED OUT BY EU AS MISLEADING

ResourceWise: May 3, '24
ESG SAF Decarbonization
Read More

CURRENT ESG TRENDS PUSH FOR SHORT- AND LONG-TERM CHANGE

ResourceWise: Apr 30, '24
Climate Change ESG Low Carbon
Read More

SBTI DISRUPTIONS CONTINUE TO CAUSE CONFUSION ABOUT DECARBONIZATION

ResourceWise: Apr 25, '24
ESG Decarbonization Carbon Credits
Read More

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