Oil major TotalEnergies misled consumers in a 2021 ad campaign claiming it could become carbon neutral by 2050, a French civil court found on Thursday, in the first decision applying France's greenwashing law to an energy company.

The court ordered TotalEnergies to remove from its website all statements regarding carbon neutrality and the energy transition that were deemed misleading, and post a link to the legal decision for 180 days, or face penalties of up to 20,000 euros per day.

It must also pay 8,000 euros ($9,330) in reparations to each of the three NGOs that brought the case - Friends of the Earth France, Greenpeace France, and Notre Affaire à Tous — and pay 15,000 euros to cover their legal fees.

TotalEnergies said the ruling targeted general mentions of its ambitions on its website, not specific ad campaigns for its electricity and gas in France.

"TotalEnergies ... will draw the conclusions of this judgment regarding the content of its website," it said in a statement.

PARIS ACCORDS REFERENCE DEEMED MISLEADING

The court cited reports from the International Energy Agency (IEA), UN Environment Programme, and the Intergovernmental Panel on Climate Change, which stress the need for a rapid drop in emissions to meet Paris climate goals. The court particularly noted an IEA recommendation to halt development of new oil and gas fields.

By referencing the Paris Accords without clarifying that its strategy includes expanding oil and gas production, Total misled consumers into believing that buying its products supported a low-carbon economy aligned with Paris goals, the court said.

Three statements must be removed: Total’s ambition “to become a major actor in the energy transition” and “carbon neutral by 2050, together with society”; its claim to “place sustainability at the heart of its strategy in line with UN sustainable development objectives”; and its goal to provide “more energy, less emissions.”

The court declined to rule on whether claims about emissions from natural gas and biofuels were misleading or whether Total’s 2050 scenario was realistic.

EU SCRUTINY OF GREENWASHING

The NGOs called the ruling historic.

“This is the first time in the world that a major oil and gas firm was found liable for misleading the public by greening its image,” their statement said.

As climate claims surge, the EU and other jurisdictions have moved to curb greenwashing, especially by financial firms. However, EU talks have stalled on penalties for misleading claims.

Total changed its name to TotalEnergies in 2021, pledging to cut emissions and invest in renewables while expanding oil and gas. Despite having 30 gigawatts of renewable capacity, over 97% of its 2024 income came from non-sustainable activities, EU disclosures show.

A separate criminal investigation by the Nanterre prosecutor’s office is ongoing.