- Feb 28, 2009
Interesting note on Down Under website.
It's about time!
Greenwashing Litigation and Legislation Crackdown
In December 2022, Europe introduced its first anti-greenwashing laws. This new collection of legislation aims to set a new standard for companies making environmental claims. The FrenchClimate and Resilience Law, set to go into effect in 2023, and the European Union's proposed Unfair Commercial Practices Directive, is slated for 2024-25. These two laws together clearly indicate the risks and consequences for companies adopting environmental claims without detailed supporting evidence.
This legislative trend to counter Greenwashing is also on the rise in the US. Sephora faces a class action launched by disgruntled shoppers over ‘clean’ claims. A claim was filed in New York federal court on November 2022.
Back to Australia we are also seeing a significant crack-down on greenwashing, including corporate claims of sustainability goals. The Australian Securities and Investments Commission (ASIC) has pledged to keep up scrutiny against greenwashing infringements. ASIC announced that‘empty’ greenwashing claims are among their top enforcement priorities for 2023. Their crackdown on greenwashing started in Oct last year and so far has publicly targeted three companies in lawsuits: Tlou Energy, Vanguard, and Black Mountain Energy. Each company paid a fine of around $40,000.
ASIC and EU law enforcement's emphasis on their guide that traceability has become more critical than ever as companies must collect and sustain their own evidence.
It's about time!
Greenwashing Litigation and Legislation Crackdown
In December 2022, Europe introduced its first anti-greenwashing laws. This new collection of legislation aims to set a new standard for companies making environmental claims. The FrenchClimate and Resilience Law, set to go into effect in 2023, and the European Union's proposed Unfair Commercial Practices Directive, is slated for 2024-25. These two laws together clearly indicate the risks and consequences for companies adopting environmental claims without detailed supporting evidence.
This legislative trend to counter Greenwashing is also on the rise in the US. Sephora faces a class action launched by disgruntled shoppers over ‘clean’ claims. A claim was filed in New York federal court on November 2022.
Back to Australia we are also seeing a significant crack-down on greenwashing, including corporate claims of sustainability goals. The Australian Securities and Investments Commission (ASIC) has pledged to keep up scrutiny against greenwashing infringements. ASIC announced that‘empty’ greenwashing claims are among their top enforcement priorities for 2023. Their crackdown on greenwashing started in Oct last year and so far has publicly targeted three companies in lawsuits: Tlou Energy, Vanguard, and Black Mountain Energy. Each company paid a fine of around $40,000.
ASIC and EU law enforcement's emphasis on their guide that traceability has become more critical than ever as companies must collect and sustain their own evidence.
Currently Wearing: Grey Flannel by Geoffrey Beene
