Greenwashing is not a new source of legal and reputational risk for business. With the sharp evolution of sustainability (and climate change in particular) into a material financial issue, greenwashing has now become an acute source of legal risk for both commercial corporations and financial institutions.

In December 2022, we published our comprehensive greenwashing guide, The rising tide of greenwashing: Navigating ‘greenwashing’ risks in climate change targets & sustainability credentials) in which we explored greenwashing trends, shared insights from regulatory investigations and greenwashing litigation in Australia and globally.

Since then, the ‘rising tide’ of greenwashing has gathered momentum to become a fully-fledged tidal wave.

In our latest greenwashing update, we explore:

• key regulatory developments that have happened in the first half of 2023, including the ACCC’s draft guidance on environmental and sustainability claims, ASIC’s recent enforcement activity, the Senate inquiry into greenwashing and one of the most significant policy changes on the radar – the introduction of mandatory climate-related financial disclosures in Australia.
• key areas of elevated / emerging risk exposure (what to watch in FY24), being carbon neutral claims, halo advertising and ‘greenhushing’.

We also provide practical tips for reducing your greenwashing exposure.

In this constantly evolving risk landscape, it is critical to stay on top of key developments and understand how best to manage risk.