Addressing The Risk Of Greenwashing Claims
Friday, April 28th, 2023 Risk ManagementAs part of a growing focus on ESG issues, regulators around the world have been focusing on exaggerated or unsubstantiated claims regarding sustainability, also known as ‘greenwashing.’
While the emphasis has mostly been on tackling environmental messaging that misleads consumers, there are other issues for risk professionals and boards of directors (including non-executive directors) to consider with respect to their stakeholders.
For organizations, the consequences of flawed strategies and misleading statements is no longer just a reputational threat. They should be planning for increased scrutiny and litigation from a wide set of stakeholders across a diverse set of issues, including potential action from competitors, consumers, investors and pressure groups relating to working conditions, human rights, inclusion and diversity, living wages, financial practices and many other concerns.
Over the past few years, we have seen the identification, sanctioning and prevention of ‘greenwashing’ move up the priority list of regulators globally.
