David McIlroy and Iain Shipley’s recent article on ESG and Greenwashing, published in Fridays edition of City A.M. The piece highlights the problem of greenwashing and why the common law, at present, will struggle to prevent it.
THERE has recently been an extraordinary surge in products and services labelling themselves as “green”. From rebranded energy companies to car manufacturers and logistics companies, everyone appears to be jumping on the green bandwagon.
But how do customers know who is really green and who is not? And, if one catches a business faking their green credentials, what can one do to hold them legally accountable?
There is a growing concern about “greenwashing”, the practice of making out that one’s business is more environmentally friendly than it actually is. At its extreme, greenwashing involves fake investments, such as the Brazilian forestry scheme set up by two directors who were sentenced last week to 11 years in prison for fraud. Earlier this month, the chief executive of DWS Group, Deutsche Bank’s asset management business, resigned after German police seized documents from its offices in connection with an investigation into allegations that it had misrepresented its investments as eco-friendly…
Please click on the link below to read the full article on City A.M: