A Dutch court has ruled that KLM's use of greenwashing in its advertising is illegal, setting a major precedent for firms promoting their commitment to climate change.

KLM's advertisements suggested flying can be or is becoming sustainable, which were found to be misleading and therefore unlawful by the District Court of Amsterdam.

The major airline had also claimed that it was 'committed to the Paris Agreement climate goals', which the judge also found to fall foul of the law, as claims about the feasability of the targets paint "too rosy a picture", given the limited measures the airline is deploying.

The judge also ruled against KLM's use of advertising to suggest that its 'offsetting' products reduce or compensate for the climate impact of flying, which was also deemed to be misleading.

This landmark ruling has a major impact on all companies promoting their net zero commitments and forces public relations firms and advertising agencies to take note of the consequences of greenwashing members of the public.

ClientEarth lawyer, Johnny White said: "Companies that publicly advertise commitments to the climate goals of the Paris Agreement must now ensure that those claims are feasible and concrete, or risk losing in Court.

"This judgment is nothing short of a wake-up call for highly polluting industries and companies that try to sell the image of commitment to the Paris climate goals without having the plans to get there. It leaves the airline industry’s climate PR strategy dead in the water."

Use of the term 'sustainable'

The Court said the use of the term 'sustainable' to describe alternative aviation fules (SAF) is 'too absolute' to be used to promote a solution to aviation's emissions.

“At the moment, SAF's share in total fuel consumption (and hence CO2 emissions reduction) is still very limited due to various reasons. A more substantial share can only be expected in the distant future, and thus uncertain. The expression is therefore misleading," the judge said.

It was also ruled that there is "no direct link between customers' tangible contribution and the impact of CO2 emissions from its flight", in relation to KLM's promotion for customers to 'offset' the climate impact of their flight.

ClientEarth's White added: “The truth has always been that ‘sustainable aviation fuels’ or ‘offsetting’ products risk justifying more emissions than they can ever save. All airlines and other companies making claims about their products’ environmental impacts that are based on offsetting should take heed from this ruling.”

Air France-KLM CEO Ben Smith labeled the suit an "inconvenience" in a press conference.

"We are not greenwashing," he said, adding that the company is taking steps to reduce its emissions, disclosing plans to purchase more efficient planes and mix more biofuel into the kerosene that fuels its fleet.

In a statement, the airline added: "It is good that the court gives us more clarity on what is possible and how we can continue to communicate transparently and honestly about our approach and activities."

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