Greenwashing, the practice of overstating the environmental benefits of products or practices, poses a significant challenge to achieving genuine sustainability.
Alarmingly prevalent, a recent Which? study revealed that 84% of 1,000 products with green claims in the UK failed to meet at least one principle of the UK Green Claims Code. Whether intentional or accidental, the repercussions of greenwashing are severe: reputational damage, hindered progress towards sustainability, and potential legal liabilities.
Heightened risks with new regulations
The regulatory landscape is evolving, with both UK and EU frameworks intensifying efforts to curb greenwashing. In the UK, the Competition and Markets Authority (CMA) can impose fines of up to 10% of global turnover for misleading environmental claims. Similarly, the EU's Empowering Consumers for the Green Transition Directive introduces new prohibitions on deceptive green claims.
How we can assist
Mishcon Purpose, our specialised ESG and sustainability practice, provides expert guidance on navigating these evolving regulations and implementing best practices for compliance. We also support businesses affected by others' misleading claims, offering expertise in preparing and submitting complaints to regulatory bodies.
Preparatory steps to take
Download our Greenwashing Compliance guide to gain insight into these evolving regulations, how to ensure best practice and avoid greenwashing pitfalls.
For bespoke training for your board or further advice on establishing processes for legal clearance of ESG-related statements in regulatory reporting, market disclosures, advertising, and press responses, book a consultation with our experienced Mishcon Purpose team.