Greenwashing risks: a growing challenge for legal professionals
Published date: 25 October 2024
New Medium article explores why, as greenwashing scrutiny intensifies, legal teams must safeguard ESG integrity across all claims
As sustainability gains importance in corporate governance, the risk of greenwashing - misleading stakeholders about a company’s environmental impact - has escalated. Legal and risk management teams play a pivotal role in ensuring that all environmental, social, and governance (ESG) claims are substantiated, safeguarding companies from potential reputational, regulatory, and legal repercussions.
In this Medium article, Elsa Chen, Partner and Chief Economist at Allen & Gledhill and Allinnettes Go Adigue, Director of GRI ASEAN, set out best practices for legal and risk management professionals for mitigating greenwashing risks, all the while fostering collaboration across departments.
What greenwashing risks mean for the legal profession
For legal and risk management professionals, greenwashing presents new challenges but also an opportunity to lead on ESG governance. Collaborating closely with sustainability and marketing teams to align claims with the most reliable data, with robust disclosure practices and ongoing monitoring, can prevent potential greenwashing from slipping through the cracks.
Elsa Chen, Partner and Chief Economist at Allen & Gledhill and Allinnettes Go Adigue, Director of GRI ASEANThe second and third articles of this series will delve deeper into the evolving legal and regulatory environment, providing detailed case studies on greenwashing and how companies can successfully navigate this complex issue.