German judicial authorities have mandated Apple to rescind assertions regarding its carbon neutrality status.

In a series of recent legal developments, tech giant Apple has faced challenges to its carbon-neutral advertising claims for its products, particularly the Apple Watch.

The Frankfurt am Main Regional Court has ruled against Apple, ordering the company to stop advertising its smartwatches as carbon-neutral. The decision, which was based on the finding that Apple's marketing slogan violates section 5 of the Act Against Unfair Competition, came on August 26, 2025.

The court's decision was primarily due to the fact that the project's continued existence is not guaranteed, and Apple's advertising claim is misleading. The court held that a reasonable consumer would assume that the Apple Watch, as advertised, would "ensure CO compensation until around 2050". However, 75% of Apple's leases for the land used in the Paraguay project are due to expire in just four years, meaning that carbon offsetting can only be guaranteed until 2029.

Apple's carbon neutrality claims stemmed from a forestry project based in Paraguay, designed to offset the carbon emissions from its products by planting eucalyptus trees on leased land. However, the court held that there is no secure prospect for the continuation of the forestry project beyond 2029 due to Apple's inability to prove the extension of all of the leases.

In an unexpected turn of events, the Environmental Defense Fund (EDF) filed an amicus brief in May in support of Apple, stating that the company had complied with consumer protection law as it possessed a reasonable basis to substantiate all reasonable consumer interpretations of its carbon-neutral claims. However, the court was unconvinced by Apple's argument.

In an emailed statement, Apple stated that the court has broadly upheld its rigorous approach to carbon neutrality and that it remains focused on reducing emissions. The company also has the option to appeal the ruling to the Higher Regional Court of Frankfurt am Main.

This is not the first time Apple has faced backlash over its carbon-neutral advertising. In February 2025, a greenwashing class action lawsuit was filed against the company in a California court. Additionally, environmental organization Greenpeace filed a lawsuit against Apple in 2025 for greenwashing and was successful in the process.

The Paris Agreement of 2015, an international climate treaty with 195 signatories, played a significant role in the court's decision. The court's ruling emphasizes the importance of transparency and accuracy in carbon-neutral claims, especially as companies strive to meet their climate goals and reduce their carbon footprint.

Elizabeth Sturcken, vice president of EDF Net Zero Ambition and Action, urged that companies that take transparent and responsible steps backed by science-aligned emission reductions "should be supported, not penalised". As the debate around carbon-neutral advertising continues, it is clear that companies must prioritize transparency and accuracy in their claims to maintain consumer trust and adhere to legal standards.

German judicial authorities have mandated Apple to rescind assertions regarding its carbon neutrality status.