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Apple Inc. is under legal scrutiny as a lawsuit filed in the U.S. District Court for the Northern District of California on Wednesday challenges the company’s claims of carbon neutrality for certain Apple Watch models.
The complaint asserts that Apple misled consumers by promoting environmentally friendly products based on carbon offset projects that fail to deliver authentic emissions reductions.
Allegations Against Apple’s Carbon Neutrality Claims
Apple’s September 2023 release of its Apple Watch Series 9, SE, and Ultra 2 was accompanied by the announcement of the company’s first carbon-neutral products. Apple credited its emissions reductions and carbon offset purchases for reaching this achievement, but seven plaintiffs from California, Florida, and Washington, D.C. have taken legal action, accusing the company of misleading marketing related to two carbon offset projects.
Chyulu Hills Project (Kenya): The plaintiffs argue that much of the land in this project has been legally protected from deforestation since 1983. Because the land was already preserved, Apple’s involvement did not lead to any additional carbon reductions.
Guinan Project (China): The complaint states that the land was already heavily forested before Apple’s participation in 2015, meaning the carbon sequestration attributed to Apple would have happened regardless of its investment.
“In both cases, the carbon reductions would have occurred regardless of Apple’s involvement or the projects’ existence,” the complaint states. “Because Apple’s carbon neutrality claims are predicated on the efficacy and legitimacy of these projects, Apple’s carbon neutrality claims are false and misleading.”
Consumer Impact and Legal Action
According to a study cited in the complaint, 70% of consumers in the U.S. and Canada view environmental factors as a key part of their purchasing decisions. The plaintiffs accuse Apple of misleading advertising, potentially steering customers away from genuinely sustainable options.
The legal action seeks unspecified damages and an injunction preventing Apple from marketing its Apple Watch Series 9, SE, and Ultra 2 as carbon neutral.
Apple’s Defence of Its Environmental Efforts
Apple has responded to the lawsuit challenging its carbon neutrality claims by reaffirming its dedication to sustainability. The company emphasised that it has reduced Apple Watch emissions by over 75% and is investing in nature-based projects aimed at removing hundreds of thousands of metric tonnes of carbon.
While it has not addressed the case specifically, Apple insists that its carbon offset efforts are a valid tool to tackle remaining emissions. The lawsuit is seeking unspecified damages and an injunction to halt the promotion of the Apple Watch Series 9, SE, and Ultra 2 as carbon neutral.
Broader Scrutiny of Corporate Carbon Neutrality Claims
Apple is one of several companies facing criticism over its carbon offset practices. A 2022 Bloomberg investigation found that major players in industries such as airlines, retail, and banking have faced allegations of relying on dubious carbon credits to advertise their products as carbon neutral.
Adding to the scrutiny, a 2023 report from the Institute of Public and Environmental Affairs questioned Apple’s transparency concerning its supply chain emissions. While the company reported a decrease in its carbon footprint between 2021 and 2023, Apple still produced 16.1 million metric tonnes of CO₂ in 2023—equivalent to the annual emissions from 42 gas-fired power plants.
Implications for the Tech Industry and Sustainability Efforts
Environmental advocates assert that companies should move away from carbon credits and prioritise cleaner energy adoption and designing products that are more durable and repairable.
Businesses may be held to stricter standards when it comes to validating the credibility of their environmental actions, with increasing legal and regulatory scrutiny of corporate sustainability claims. The case’s outcome could have widespread implications for the future of corporate sustainability marketing.