The UK's Advertising Standards Authority (ASA) has ruled that a video ad from oil giant TotalEnergies SE misled the public by exaggerating the company’s investment in renewable energy without disclosing the full extent of its continued reliance on oil and gas. The ad, which featured a clean energy startup supported by the company, failed to mention that fossil fuels still dominate TotalEnergies' operations. In contrast, a separate Shell ad, which included references to both its renewable initiatives and its core oil and gas business, was deemed acceptable. The ASA highlighted the importance of providing a balanced view when making environmental claims to avoid “misleading by omission”. (Bloomberg)

Why does this matter? This ruling is important  because it sets a clearer standard for how fossil fuel companies can advertise their green initiatives without misleading consumers. As public awareness of climate issues grows, so does the scrutiny of corporate environmental claims – especially from high-emission industries. The ASA’s decision signals that regulators expect full transparency from companies trying to position themselves as environmentally responsible. It also raises broader questions about corporate accountability and whether industries with fundamentally high carbon footprints should be allowed to advertise green credentials at all, echoing debates similar to those that led to tobacco advertising bans.

Enforcement is escalating beyond fossil fuel advertising. Earlier this month, German prosecutors fined Deutsche Bank-owned asset manager DWS €25m ($27m) for overstating its ESG credentials. Investigations revealed that from 2020 to 2023, DWS promoted itself as a leader in sustainable investing, however prosecutors found these claims “did not correspond to reality”. This case reinforces that greenwashing is no longer merely a reputational risk – it is now a material compliance and financial liability.

Among the actors leading a legal crackdown on greenwashing, is Germany’s Deutsche Umwelthilfe (DUH). The NGO is targeting over 100 companies for misleading environmental claims. From airlines to cosmetics, DUH legally challenges vague labels such as “climate neutral” that often rely on unverifiable carbon offsets or lack proper explanation. Backed by supportive court rulings, DUH’s work is reshaping how companies advertise sustainability, holding them accountable under Germany’s Act against Unfair Competition. Its efforts are sending a strong signal across Europe that climate claims must be transparent, specific and provable. As green marketing becomes more common, DUH’s activism is proving essential in protecting consumers and climate integrity alike.

Even certification bodies are tightening standards. The B Corp movement, which certifies ethical businesses, is undergoing a major overhaul amid growing criticism that it has enabled greenwashing. As major corporations with questionable environmental records joined its ranks, concerns mounted that the certification served more as marketing than meaningful accountability. The new standards, set for 2026, introduce minimum requirements across key areas such as climate action and human rights, replacing the loophole-laden points system. These changes aim to restore trust and prevent companies from masking harmful practices behind selective sustainability claims. This marks a broader shift toward measurable, defensible ESG performance across industries.