Chevron accused of ‘greenwashing’ in complaint lodged with FTC

A group of environmental NGOs have accused US oil major Chevron of “greenwashing” in a complaint to the Federal Trade Commission, providing an early test of what role the regulator will play in enforcing the Biden administration’s climate goals.

Earthworks, Global Witness and Greenpeace claimed Chevron misrepresents its image to the public in order to appear “climate-friendly” despite fossil fuels being at the heart of its operations.

Activists said the complaint was the first to accuse a fossil fuel company of greenwashing under the FTC’s “green guides” — regulations aimed at stopping companies making environmental claims that mislead consumers in their marketing.

The activists groups want the FTC — the government agency tasked with protecting consumer interests — to take action against Chevron for “egregiously misleading consumers” by exaggerating its investments in clean energy.

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“The FTC must hold Chevron accountable for any misleading claims in its advertising and marketing, to ensure that corporate ‘greenwashing’ does not go unchecked,” they said.

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

A spokesperson for the company said: “We are taking action to reduce the carbon intensity of our operations and assets, increase the use of renewables and offsets in support of our business and invest in low-carbon technologies to enable commercial solutions.”

US oil companies have sought to improve their green image under growing pressure from investors, who are increasingly prioritising environmental, social and governance issues in their mandates.

Chevron, the second-biggest US oil company by market capitalisation said last week that “higher returns, lower carbon” would be its guide as it pledged to raise low-carbon spending to more than $3bn by 2028.

President Joe Biden has promised to make tackling climate change a core pillar. But a narrow majority in Congress will leave him dependent on regulatory bodies such as the Securities and Exchange Commission, the Environmental Protection Agency and FTC, to bring about change.

“The administration has made it clear that the climate crisis and tackling the climate crisis is a key priority,” said Julie Anne Miranda-Brobeck, head of global partnerships at Global Witness.

“This is really just a test for the new FTC [under] the new administration to see if they will actually make good on this promise to hold polluters accountable.”

While the FTC is an independent agency, the president appoints its chairman and commissioners, who determine its direction. The administration is currently considering nominating Lina Khan, a prominent critic of large technology companies, as a new commissioner, according to people familiar with the matter.

The FTC could not be reached for comment.

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