Walk into any grocery store and you'll see it everywhere: "carbon neutral," "eco-friendly," "100% sustainable." But behind these misleading labels, a legal battle is brewing that's forcing companies to either prove their green claims—or go silent entirely.
Source: Unsplash/Kateryna Hliznitsova
What's Actually Happening?
In October 2025, French oil giant TotalEnergies became one of the first major corporations found guilty of greenwashing (TrustDitto, 2025). A Paris court ruled that the company deceived consumers by promoting carbon neutrality commitments while simultaneously expanding fossil fuel projects. The penalty? Remove the misleading claims, compensate NGOs, and publish the court decision for all to see.
This isn't an isolated case. From Deutsche Bank's €25 million fine for exaggerating ESG(Environmental, Social, and Governance) credentials to Coca-Cola being forced to revise its "100% recycled plastic" packaging claims (the caps and labels weren't actually recycled), regulators worldwide are cracking down on empty environmental promises (Watson, 2025).
Enter "Greenhushing"
Here's where it gets interesting. In Canada, anti-greenwashing legislation passed in 2024 requires companies to back up environmental claims with "adequate and proper testing" using "internationally recognized methodology" (Lake, 2025). Sounds reasonable, right?
Instead of rising to the challenge, many companies chose silence. Days before the law took effect, Pathways Alliance (representing Canada's six largest oil sands producers) scrubbed their entire website of climate-related content. Even the Royal Bank of Canada dropped its $500 billion sustainable finance commitment, citing the new rules (though legal experts suspect other motives were at play).
This phenomenon, called "greenhushing," represents a fascinating paradox: regulations designed to promote honesty have instead produced silence.
Why Should Students Care?
As future consumers, employees, and leaders, we're inheriting a marketplace where distinguishing genuine sustainability from marketing spin has never been harder or more important. Companies actually doing environmental work are now scared to talk about it because they might get sued. Meanwhile, the real polluters have figured out that saying vague things like "committed to a sustainable future" is just as risky.
And it's not just energy companies in the hot seat anymore. Food manufacturers are next. Take M&Ms: researchers estimate each kilogram of the candy produces over 13 kilograms of CO2, mostly from cocoa farming that contributes to deforestation and palm oil production (Kwapisz et al., 2025). Fashion brands, airlines selling "carbon neutral" flights, and banks that fund fossil fuel projects while advertising their green investments are all facing similar questions.
Source: Unsplash/Janay Peters
What Happens Now?
We're at a turning point. New EU regulations like the Corporate Sustainability Reporting Directive are forcing companies to get specific about their environmental impact (Watson, 2025). No more hiding behind industry coalitions or bragging about one solar panel while running a dozen coal plants.
If you're studying sustainability or just care about corporate accountability, now's the time to get skeptical. When you see an environmental claim, dig deeper. How did they measure that? What are they leaving out? Is this the whole story or just the parts that look good?
Greenwashing isn't going away. It's changing form. The winners will be companies that genuinely commit to sustainability and can prove it, not just the ones with the best marketing teams.
The companies profiting from our planet's decline are counting on us to stay quiet, stay confused, stay convinced by their green logos. Don't give them that. Ask questions. Demand transparency. Real change starts when we stop accepting marketing as absolute truth.
References:
TrustDitto. (2025, October 24). CSR news of 10/24/2025: Climate, greenwashing and the green transition. TrustDitto.
https://www.trustditto.com/en/resources/news/csr-news-of-10-24-2025-climate-greenwashing-and-the-green-transition trustditto.com
Lake, H. (2025, September 15). From greenwashing to greenhushing. National Magazine.
https://nationalmagazine.ca/en-ca/articles/law/hot-topics-in-law/2025/from-greenwashing-to-greenhushing National Magazine
Watson, M. (2025, August 5). The rise of greenwashing amid growing ESG pressures. Watson Farley & Williams.
https://www.wfw.com/articles/the-rise-of-greenwashing-amid-growing-esg-pressures/ WFW
Kwapisz, J. R., Lombardo, J. D., Reiter, D. E., & Novak, L. R. (2025, October 30). Are ultra-processed foods the next wave of greenwashing claims? Consumer Products & Retail Navigator (Arnold Porter).
https://www.arnoldporter.com/en/perspectives/blogs/consumer-products-and-retail-navigator/2025/10/are-upfs-the-next-wave-of-greenwashing-claims