Lessons on How to Avoid Stains of Greenwashing
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Marketing & Communications Roundtables

Lessons on How to Avoid Stains of Greenwashing

November 17, 2022 02:00 PM ET - 03:15 PM ET

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The issue of ‘greenwashing’ is widespread across the world. Giving the impression that a company, business, product, or service is environmentally friendly or ecologically sustainable when there is little or no evidence to back those claims is the essence of greenwashing. Companies may expect more scrutiny from regulators, environmental groups, consumers, investors, and other stakeholders, elevating the risk of being perceived as engaging in greenwashing. Regulators in several jurisdictions (e.g., Canada, India, US, and in Europe), have taken note of greenwashing and are in the process of regulating companies’ conduct. Recent trends in stakeholder activism in this regard demonstrate that consumers are no longer shying away from registering complaints alleging greenwashing by companies. In the US, the SEC in 2022 proposed two rules that, considered together, seek to check and curb greenwashing: Investment Company Names (“Names Rule”) and Enhanced Disclosures by Certain Investment Advisers and Investment Companies about Environmental, Social, and Governance Investment Practices (“ESG Disclosure Rule”).

Companies may also face lawsuits and regulatory scrutiny upon actions initiated by environmental groups. Different jurisdictions define green activities differently. Determining what is green is not as simple as it seems.

At this Roundtable we’ll tackle the issue of ‘greenwashing’ and how companies can avoid it. We will gather all the insights form the session and will deliver in a report.

 

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Roundtables are discussions held under the Chatham House Rule for M&C Center Members and invited guests that focus on a key topic of interest with a single session (1-2 hours).

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