Greenwashing and ESG. Why it Matters

Greenwashing Scrutiny Continues to Increase

Consumer demands for sustainable goods and services are higher than ever and a top priority for companies around the globe. As companies market their goods and services around this topic, there is a high risk of “greenwashing” in their marketing. Greenwashing is making unsubstantiated or misleading environmental claims in marketing. Regulators in the United States are beginning to ramp up enforcement of greenwashing, and this focus extends beyond consumer goods into myriad other areas—including the marketing of investment funds. For instance, the SEC recently proposed new rules that would increase the disclosure requirements for funds that include terms such as “ESG,” “sustainable,” or “low-carbon” in their names, as well as for advisers who consider ESG factors in their advisory business. In addition to regulatory activity of this nature, the courts have seen a substantial increase in litigation around this important issue. Here are some key resources to get you up to speed on this emerging issue:

• Practice note on Green Claims in Advertising from Practical Guidance
• Article discussing government scrutiny of greenwashing from Law360
• Treatise section discussing environmental representations in advertising
• Summary of resources covering SEC rules targeting ‘greenwashing’ by advisers, funds

Resources for Finance, Financial Services Regulation, and Real Estate:

• Sustainability-Linked Loans Tracker
• Energy Security and Climate Change Initiatives in the Inflation Reduction Act: Client Alert Digest
• Environmental Considerations in Real Estate Transactions Resource Kit

Overview resource covering all practice areas including Capital Markets and Corporate Governance, Commercial Transactions, Corporate and M&A, Employee Benefits & Executive Compensation, Energy & Utilities, Finance, Financial Services Regulation, Insurance, Labor & Employment, Private Equity & Investment Management, Real Estate, and Tax:

• ESG Resource Kit

Upcoming webinars to help you understand this industry and the Lexis offerings:

• Sept 15 at 1p.m. EST: ESG Considerations for the Energy/Environmental Practitioner
• Sept 22 at 2p.m. EST: Energy for the First Year Associate
• Sept 28^th at 1p.m. EST: CLE Trends to Watch in Energy Law
• Sept 29^th at 1p.m. EST: ESG Disclosure Issues For Public Companies