In the last few years we have seen an exponential rise in climate litigation claims, and many of these are as a result of greenwashing. This is a trend we're seeing across almost every industry, including increased regulatory, investor and consumer scrutiny of potential greenwashing.
The spectrum of these claims is so broad, and can include corporate regulators taking enforcement action, shareholders suing in relation to corporate disclosures, commercial competitors seeking to protect their market position by suing to restrain greenwashing conduct or strategic litigation backed by activist groups.
Although we are starting to see active intervention by regulators, organisations need to understand where they could be exposed to risk and ensure they have the right processes in place to avoid it.
Greenwashing issues have reputation at their heart. Is your business protected?
Is climate litigation driving the energy transition?
Throughout 2022, we continued to see legal action addressing issues of climate change – so-called “climate litigation”
Climate change and sustainability disputes: Greenwashing
As the demand for eco-friendly products and services grows, so too does the risk of companies overstating their sustainability credentials in order to attract and retain customers and investors. This phenomena has been coined ‘greenwashing’ or the ‘green sheen’ and regulators are starting to take action.”