(Credit: Evian)Danone Waters of America is facing a class-action lawsuit claiming the company’s Evian Natural Spring Water labels are providing false information that the product is carbon neutral, highlighting a growing trend of legal questions surrounding sustainability claims.
The lawsuit was filed on Oct. 13, 2022, in the US District Court of New York by Stephanie Dorris. The filing claims Danone is misleading consumers into thinking the product is sustainably manufactured and doesn’t emit carbon.
The 29-page suit says that the labeling doesn’t explain how the Evian products are carbon neutral and that the average consumer isn’t going to understand that Danone purchases carbon credits to offset the carbon that is emitted during production. The suit also says the company does not specifically define what carbon neutrality is and Danone does not direct consumers to a website or other information to explain how it achieves carbon neutrality.
The filing says most customers would believe carbon neutral to mean carbon-free. Going further, the lawsuit claims the carbon credits Danone purchases don’t actually reduce emissions and questions whether carbon offsets work at all, calling the practice a form of greenwashing. It claims that companies that provide the carbon offsets also still emit emissions and that it could take decades for any offsets to become successful. Additionally, Evian says it has worked to offset emissions through Livelihood Carbon Funds, and the lawsuit questions those actions as well because Danone co-founded the organization.
So-called greenwashing litigation is increasing as more corporations are making sustainability goals and statements.
According to the Washington Legal Foundation, greenwashing litigation involves a claim under state laws in which a defendant “misrepresents its product in such a way that a reasonable consumer will believe that the product is more environmentally friendly than it is.” The Washington Legal Foundation also says these types of legal trends show how difficult it is for businesses to substantiate ESG claims and can deter their sustainability commitments.
In a report by FoodNavigator-USA, the law firm Perkins Coie says 61 ESG-related class action filings were made in 2020 and 2021. There were a total of 27 similar lawsuits in the previous three years combined. Many sustainability lawsuits rely on the Federal Trade Commission’s Green Guides on environmental marketing, according to the Washington Legal Foundation.
Governments have also taken part in cracking down on potentially false sustainability claims. Early in 2022, Canada fined Keurig Dr Pepper $2.3 million for misleading recyclability information on its single-use K-Cup coffee pods. In June 2022, the Norwegian Consumer Authority ordered H&M and Norrøna to stop using a consumer transparency tool that shows apparel sustainability ratings because it may be inaccurate and misleading.
Evian was certified in April 2020 as carbon neutral to international standard PAS 2060 by the Carbon Trust. PAS 2060 verification requires four stages of carbon neutrality, including measurement, reduction, offsetting, and documentation. A company cannot obtain the verification with only carbon offsets.
At the time Evian said using recycled plastic, which could save up to 50% of carbon emissions, as well as using a 100% renewable energy-powered bottling plant, were significant sources of its carbon neutral achievement. The company said renewable energy use was its biggest investment toward the goal at more than $280 million and helped it reduce emissions by 90%.
“Evian is deeply committed to sustainability,” Danone told Food Business News regarding the lawsuit. “While we cannot comment on active litigation, each year we measure carbon emissions across all life cycle stages of an Evian bottle, and we continuously strive to reduce that footprint.”
Dorris is looking for nationwide plaintiffs seeking compensation to join the suit. The lawsuit also is calling for a jury trial.
