Greenwashing risk

Risk management - greenwash.

Greenwashing means activities designed to promote a flattering image of:

• An organisation as being more environmentally responsible than it really is, or
• A product as having better environmental credentials than it actually does.

Greenwashing risk is the risk of adverse consequences, following from greenwashing.

Prospect of huge fines for greenwashing

"Treasurers need to take a key role in ensuring their organisations do not indulge in misleading messaging, as the prospect of huge fines become reality...

The cost of greenwashing is set to rise dramatically next year.

In 2025, the [UK] Competition and Markets Authority (CMA) will gain enforcement powers to fine a company up to a 10th of its annual global turnover if it is found to be greenwashing, warned Lisa Wright, a partner in the competition and regulatory team at law firm Slaughter and May...

“It’s important to remember that greenwashing is not just about the outright lies that the companies tell, it is about levels of truth.

It could be highlighting one thing to conceal another thing in your reporting, or hiding key facts in footnotes on page 249 of your sustainability report,” she added."

Greenwashing risk high on corporate agenda - 13 December 2024.

See also

• Climate-washing
• Competition
• Competition & Markets Authority (CMA) UK
• Corporate social responsibility (CSR)
• Environmental crime
• Ethics washing
• Green
• Green bond
• Green-hushing
• Green swan
• Greenwash
• Impact washing
• Regulation
• Risk
• Risk management
• Sustainability

Other resource

• Greenwashing risk high on corporate agenda - the Treasurer online - December 2024