Paige Coulter & Julianne Hughes-Jennett map out the risky landscape of greenwashing regulation
- In 2024, the FCA and CMA in the UK have both demonstrated an increased focus on greenwashing.
- A rise in interest in legal actions concerning allegations of greenwashing can be expected.
- Businesses and practitioners should be aware of the risks in making any claim that could be construed as a sustainability or environmental claim, as available guidance suggests a low threshold for greenwashing.
Greenwashing refers to the practice of publishing misleading information about the environmental or sustainability characteristics of a good, service or business. The term has gained increasing attention in the past few years from regulators in the UK. In addition to the heightened regulatory risks, businesses should be aware of the potential for litigation founded on greenwashing principles, including under the Financial Services and Markets Act 2000 (FSMA 2000) and the Companies Act 2006 (CA 2006).
Regulatory framework
The regulatory framework governing greenwashing claims is multi-faceted. The Financial Conduct Authority
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