The UK's competition watchdog announced it will review a broad range of companies for potentially "greenwashing," or saying a product is environmental friendly, when it is not in fact so. In addition, the UK agency will work with its Dutch counterpart to conduct a sweep of websites around the world. While not all regulators agree on what is "ESG," or how to disclose it, they all seem ready to take action to protect consumers from fraud in this area. Clearly, market participants all over the world need to make sure what they are saying about the green benefits of their product is accurate--please take the time to scrutinize what you are saying, before the regulators come knocking....
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UK regulators investigate "greenwashing"...will others follow?
The CMA is looking across a wide range of sectors, although it is likely to focus on those industries where consumers appear most concerned about misleading claims, including textiles and fashion, travel and transport, and fast-moving consumer goods (food and beverages, beauty products and cleaning products).
The Linklaters annual ESG outlook has been published and you can download your copy here. Watch our global head of ESG, Rachel Barrett,...