Managing U.S. Enforcement and Civil Risks Relating to ESG Issues: Greenwashing

Companies face new pressures relating to the potential environmental impact of their products and services.

In recent years, ESG has become a focal point about how companies conduct their business and there has been an increase in pledges to reduce greenhouse gas emissions, marketing of environmentally friendly products and reporting on environmental, social and corporate governance/ESG metrics. As with any other statements that companies make, it is important that such statements are substantiated and accurate. More and more authorities and private litigants are targeting alleged greenwashing, which includes misstating the use of environmental considerations, overstating the environmental benefits, and underplaying the environmental risks relating to products. In this alert memo, we outline legal theories that U.S. authorities and private litigants have pursued relating to greenwashing, best practices in making environmental claims, disclosure and climate commitments and potential defenses against allegations of greenwashing.

Please click here to read the full alert memorandum.