Chevron accused of ‘greenwashing’ in complaint lodged with FTC

A team of environmental NGOs have accused US oil key Chevron of “greenwashing” in a grievance to the Federal Trade Fee, offering an early examination of what purpose the regulator will play in imposing the Biden administration’s weather ambitions.

Earthworks, International Witness and Greenpeace claimed Chevron misrepresents its picture to the general public in get to seem “climate-friendly” even with fossil fuels currently being at the heart of its functions.

Activists claimed the complaint was the initial to accuse a fossil gasoline enterprise of greenwashing under the FTC’s “green guides” — laws aimed at halting companies generating environmental claims that mislead consumers in their marketing.

The activists teams want the FTC — the federal government agency tasked with safeguarding buyer pursuits — to get action towards Chevron for “egregiously deceptive consumers” by exaggerating its investments in clear electrical power.

“The FTC ought to keep Chevron accountable for any misleading claims in its advertising and promoting, to guarantee that company ‘greenwashing’ does not go unchecked,” they explained.

Chevron on Tuesday dismissed the criticism to the FTC as “frivolous”.

A spokesperson for the organization reported: “We are taking action to lessen the carbon intensity of our functions and belongings, enhance the use of renewables and offsets in aid of our company and devote in low-carbon systems to permit industrial remedies.”

US oil organizations have sought to enhance their green impression below growing pressure from buyers, who are significantly prioritising environmental, social and governance problems in their mandates.

Chevron, the next-biggest US oil corporation by marketplace capitalisation reported past week that “higher returns, reduced carbon” would be its information as it pledged to boost paying out on decreasing carbon emissions whilst holding investment in oil and gas production at present-day concentrations.

President Joe Biden has promised to make tackling local weather change a main pillar. But a narrow the greater part in Congress will go away him dependent on regulatory bodies these as the Securities and Exchange Commission, the Environmental Defense Agency and FTC, to bring about adjust.

“The administration has designed it clear that the local climate disaster and tackling the weather disaster is a critical priority,” reported Julie Anne Miranda-Brobeck, head of international partnerships at World-wide Witness.

“This is genuinely just a examination for the new FTC [under] the new administration to see if they will truly make excellent on this guarantee to maintain polluters accountable.”

Even though the FTC is an independent agency, the president appoints its chairman and commissioners, who determine its course. The administration is at the moment thinking of nominating Lina Khan, a outstanding critic of big technological know-how businesses, as a new commissioner, in accordance to people today common with the make a difference.

The FTC could not be reached for comment.