MSC Cruises in Hot Water Over Greenwashing

Sustainability claims by MSC Cruises, including that it targets "net zero by 2050" do not meet standards, the Dutch advertising board found on Wednesday in one of the first decisions against a cruise operator following a greenwashing complaint.

MSC, a privately held Swiss-Italian firm that is among the world's largest cruise operators, said in a reaction it welcomed some parts of the decision and had "already implemented most of the changes advised".

Greenwashing entails a company giving a misleading impression of its environmental credentials. The findings of the Stichting Reclame Code (SRC) do not carry any penalty beyond recommending the claims are not repeated.

Environmental groups, led by Fossil Free Netherlands that brought the complaint, say slogans and ads used by the firm such as "#SavetheSea", and "sailing to the future in a responsible way" help tourists rationalize using a service that is powered by fossil fuels and contributes to global warming.

Much of the decision focused on MSC's advertising of its use of liquefied natural gas (LNG) in some of its ships. The company says LNG is less carbon dioxide emitting than alternatives such heavy fuel oil or marine diesel.

While allowing that may be true, the board said MSC had not considered LNG's broader environmental impact and it was wrong to bill it as "one of the cleanest" fuels.

"Such an absolutely worded claim does not fit with fossil fuels," the SRC found.

The company said the SRC decision did not disallow all of the ads in the complaint and that it would continue to use LNG.

"We remain firmly committed to (our environmental) strategy, which includes the use of fossil LNG as a transitional fuel and renewable fuels," the company said.

The SRC said that company's stated target of zero emissions in 2050 or "the not all too far future" was too speculative and cannot reasonably be expected to be achieved.

Fossil Free Netherlands, which won a civil lawsuit against airline KLM with similar arguments in March, said the SRC decision was another landmark and further confirmation of its positions.

(Reuters - Reporting by Toby Sterling; editing by Barbara Lewis)