header-logo header-logo

15 November 2024 / Paige Coulter , Julianne Hughes-Jennett
Issue: 8094 / Categories: Features , ESG
printer mail-detail

Warning—the greenwashing threshold may be lower than you think

196799
Paige Coulter & Julianne Hughes-Jennett map out the risky landscape of greenwashing regulation
  • In 2024, the FCA and CMA in the UK have both demonstrated an increased focus on greenwashing.
  • A rise in interest in legal actions concerning allegations of greenwashing can be expected.
  • Businesses and practitioners should be aware of the risks in making any claim that could be construed as a sustainability or environmental claim, as available guidance suggests a low threshold for greenwashing.

Greenwashing refers to the practice of publishing misleading information about the environmental or sustainability characteristics of a good, service or business. The term has gained increasing attention in the past few years from regulators in the UK. In addition to the heightened regulatory risks, businesses should be aware of the potential for litigation founded on greenwashing principles, including under the Financial Services and Markets Act 2000 (FSMA 2000) and the Companies Act 2006 (CA 2006).

Regulatory framework

The regulatory framework governing greenwashing claims is multi-faceted. The Financial Conduct

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Freeths—Rachel Crosier

Freeths—Rachel Crosier

Projects and rail practices strengthened by director hire in London

Bird & Bird—Gordon Moir

Bird & Bird—Gordon Moir

London tech and comms team boosted by telecoms and regulatory hires

DWF—Stephen Hickling

DWF—Stephen Hickling

Real estate team in Birmingham welcomes back returning partner

NEWS
Refusing ADR is risky—but not always fatal. Writing in NLJ this week, Masood Ahmed and Sanjay Dave Singh of the University of Leicester analyse Assensus Ltd v Wirsol Energy Ltd: despite repeated invitations to mediate, the defendant stood firm, made a £100,000 Part 36 offer and was ultimately ‘wholly vindicated’ at trial
The Police and Criminal Evidence Act 1984 transformed criminal justice. Writing in NLJ this week, Ed Cape of UWE and Matthew Hardcastle and Sandra Paul of Kingsley Napley trace its ‘seismic impact’
Operational resilience is no longer optional. Writing in NLJ this week, Emma Radmore and Michael Lewis of Womble Bond Dickinson explain how UK regulators expect firms to identify ‘important business services’ that could cause ‘intolerable levels of harm’ if disrupted
Criminal juries may be convicting—or acquitting—on a misunderstanding. Writing in NLJ this week Paul McKeown, Adrian Keane and Sally Stares of The City Law School and LSE report troubling survey findings on the meaning of ‘sure’
The Serious Fraud Office (SFO) has narrowly preserved a key weapon in its anti-corruption arsenal. In this week's NLJ, Jonathan Fisher KC of Red Lion Chambers examines Guralp Systems Ltd v SFO, in which the High Court ruled that a deferred prosecution agreement (DPA) remained in force despite the company’s failure to disgorge £2m by the stated deadline
back-to-top-scroll