Are you safe from a greenwashing claim?
With climate change and human rights making headlines, consumers are increasingly choosing products and services based on the sustainability claims companies make.
In Canada, high profile complaints, including against a manufacturer and a bank have been filed with the Competition Bureau, resulting in fines and other penalties.
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Greenwashing
According to a website sweep conducted by the International Consumer Protection and Enforcement Network (ICPEN) in 2021, four in 10 of these claims are exaggerated, false, unsubstantiated or misleading —
a practice commonly known as “greenwashing.”
of green claims are exaggerated, false,
or deceptive.
To avoid complaints and respond confidently if one happens, scrutinize your reports, disclosures and marketing for any claims that may be hard to back up. Once you’ve tested and confirmed all claims, maintain an up-to-date, accurate and easy-to-access record of the evidence. Make sure you walk your talk internally, so your employees feel comfortable with your claims. And take a hard look at your global supply chain in anticipation of Canada’s modern slavery legislation.
Laura Wagner
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LWagner@blg.com
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RWilliams@blg.com
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Rick Williams
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Benedict Wray
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Alan Ross
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Jonathan Cocker
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In Italy, a textile company obtained an interim injunction against its competitor for greenwashing claims.
In the U.S., greenwashing class action suits are becoming more common.
Whistleblowing employees are another source of claims.
– ICPEN sweep of 500 websites, 2021*
42
%
* Source: Screening of websites for 'greenwashing': half of green claims lack evidence | ICPEN
* Source: Race to Zero