Environmental concerns have become increasingly significant for today’s businesses, with consumer demands and complex environmental protection laws affecting a wide variety of industries.
For example – just a few of many – manufacturers may be at risk of causing damage to the environment with their byproducts. Storage or transport companies can violate environmental regulations if leaks or accidents pollute the air or water. Landowners may trigger legal issues if their property includes an environmentally sensitive area. Real estate developers can face fines or worse if the wrong type of building materials are used.
In addition to the direct impact businesses can have on the environment, legal problems can arise from the use of sustainability or related claims in marketing materials. A company may be accused of “greenwashing,” a form of false advertising where a company’s claims for environmental protection don’t align with its actions.
Potentially lengthy and expensive environmental lawsuits can be brought at various levels by regulatory agencies, private parties, and/or non-profit organizations dedicated to environmental protection.
RED FLAGS FOR GREENWASHING
Companies must consider all aspects of their public-facing messaging when evaluating their environmental actions and claims. Messaging issues that are litigated include the accuracy of specific terms like “recyclable,” “compostable,” and “biodegradable” when applied to a product. Specific claims with regard to a product’s carbon footprint may be considered misleading unless well-documented.
Accusations of greenwashing can lead to courtroom battles, as seen in the recent class action lawsuit against KLM Royal Dutch Airlines (Simijanovic v. Koninklijke Luchtvaart Maatschappij N.V.), filed in the federal district court for the Eastern District of Michigan. The complaint asserted that the defendant’s conduct – claims about its use of “sustainable biojet fuel” as well as allowing fliers to purchase carbon credits to offset emissions through reforestation when the company was required to engage in the reforestation programs anyway – violated the Michigan Consumer Protection Act and constituted fraud.
The stakes for businesses are clear: Misleading environmental claims can not only result in legal challenges, but also damage consumer trust. Learn how to safeguard your business by adopting transparent and compliant sustainability practices, ensuring any of your green messaging truly resonates.
##
TAKE ACTION TO MINIMIZE YOUR RISK
Companies can be proactive in avoiding most types of environmental lawsuits by taking some precautionary measures:
- Keep up to date on specialized permits for demolition, waste removal, or building projects in sensitive areas.
- Consider clearly posting disclaimers as to the limitations of environmental claims.
- Maintain fastidious records of all relevant practices in order to back up environmental compliance and claims, making these records publicly available when appropriate.
- Carefully vet all vendors for potential upstream risks of greenwashing claims or environmental liability.
- Maintain transparency in reporting your environmental impact, by such practices as publishing annual sustainability reports.
- Stay up to date on the latest environmental standards and regulatory compliance – consider hiring a dedicated environmental standards and practices monitor.
- Assemble in-house counsel or hire a review team that is well-versed in environmental law in order to assess contracts, labeling and marketing materials before publishing.
KEEPING IT GREEN AND CLEAN
While an environmental lawsuit is not great for business, ultimately, we know that it is only right that companies’ environmental effects and eco-friendly claims are scrutinized. Regulations need enforcement to be effective, and therefore almost anyone may encounter environmental disputes or legal challenges in the course of doing business.
Protect your interests by considering the potential problems in any of these areas ahead of time, and placing yourself in a strong position should an accusation arise. Your legal counsel should be prepared to respond firmly and with documentary evidence to support your actions, claims or rights.
Our team of Michigan environmental lawyers can help you avoid litigation by employing Environmental Dispute Resolution, helping to reach a solution through negotiation or arbitration. We’re also more than ready to defend your rights in court. To minimize legal exposure and minimize risk, our expert attorneys can draft and review contracts that include environmental protection clauses, or help you find experts to assess the environmental impact of your operations. We have experience helping businesses with Permit Acquisition and Maintenance, and can help your business meet the requirements of Environmental Compliance Audits, ensuring sound practices in line with current environmental law at all levels.
At August Law, helping professional practices address legal questions related to environmental lawsuits is just one of our specialized areas of legal expertise. Contact us today for a free case evaluation to learn more about how to safeguard your business.