European Commission proposed Green Claims Directive, intended to make green claims reliable, comparable and verifiable across EU and protect consumers from greenwashing. Catalyst spurs the US to approve stronger regulatory enforcement mechanisms to crackdown on greenwashing.
Green bonds are increasing with over $500 billion issued in 2022. There is debate over whether all of these bonds were issued for activities that were in fact green. To prevent greenwashing, EU Commission proposed new regulation creating standards for EU Green Bonds EuGBs.
Now more than ever, global companies that are advertising, marketing, drafting ESG statements, or disclosing information must pay extremely close attention to the language used in all of these types of documents or else run the risk of enforcement action or lawsuits.