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Anti-greenwashing rules: climate compliance

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31 May 2024 / Teja Pisk
Issue: 8073 / Categories: Features , Commercial , Environment , Company
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The FCA’s new anti-greenwashing rule has come into force. Businesses need to act—right now—writes Teja Pisk
  • The FCA’s new greenwashing measures aim to protect consumers and improve trust in sustainable investment products and services.
  • Firms must act now or risk ramifications under civil, criminal or regulatory enforcement proceedings—and stay on top of future legislative changes.

In keeping with growing consumer interest in sustainability, the number of products and services claiming to be sustainable and environmentally friendly has increased exponentially in recent years.

This boom in ‘green’ branding has fuelled concerns that organisations are ‘greenwashing’, ie, making false, misleading or unsubstantiated claims about the environmental benefits or impact of their business, products or services.

Changing at pace

The UK’s environmental, social and governance (ESG) legal and regulatory landscape has historically been relatively fragmented (greenwashing, for example, still has no legal definition), but that is now changing at pace, with an array of new ESG-related legislation and regulation that businesses must comply with.

One such development has come from the Financial

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