Disclosure rules may prompt more investigations of environmental marketing claims (2024)
| Environmental, social, and corporate governance |
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New disclosure mandates may prompt new investigations of and legal actions against companies and investment funds that fraudulently overstate their ESG-friendliness, according to a recent Thomson Reuters Institute article:
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Claims of greenwashing — allegations of fraud related to environmental, social & governance (ESG) matters involving misconduct or misstatements — will emerge more prominently in 2024. Potential litigation is likely to focus around three major areas of ESG concerning: i) voluntary company disclosures; ii) litigation that challenges products and the integrity of companies’ supply chains; and iii) legal action confronting existing corporate diversity, equity & inclusion (DEI) policies and practices, according to Carl Valenstein, co-head of the ESG practice at Morgan Lewis, and Partner Franco Corrado. In addition, the increasing multifaceted mandates for corporate ESG disclosures worldwide are likely to keep greenwashing as a major challenge into 2025 and beyond. Greenwashing lawsuits have continued to gain steam as companies have increased their voluntary disclosures concerning ESG-related commitments to satisfy investor and consumer demands. Decarbonization and net zero commitments are at the forefront of this risk and look to remain a hot button topic.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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