The Business Times
business-time-50

Companies’ legal exposure to greenwashing claims set to rise

Absence of a unified definition of greenwashing, evolving regulatory developments and “greenwashing by association” complicate management of the threat

google-preferred-sourceAdd BT as a preferred source
Michelle Quah

Michelle Quah

Published Mon, May 15, 2023 · 05:50 AM
    • The breadth of the potential greenwashing claims that can be brought against a company - ie. the potential scope of liability and the extent of possible legal grounds for a claim - will continue to increase, says Baker McKenzie. PHOTO:
    • The breadth of the potential greenwashing claims that can be brought against a company - ie. the potential scope of liability and the extent of possible legal grounds for a claim - will continue to increase, says Baker McKenzie. PHOTO: BT

    COMPANIES’ exposure to accusations of greenwashing is set to continue rising, and with it the risk of regulatory action, civil claims and reputational damage, lawyers told The Business Times.

    Underpinning that trend are the growing demand for more environmentally friendly offerings from corporates, escalating competition for green financing and deepening scrutiny from stakeholders and regulators.

    Complicating how companies manage this growing threat is the current lack of a unified definition of what constitutes greenwashing, still-developing rules and laws, and the growing consensus that greenwashing does not need to be intentional to be deemed as such.

    ESGClimate-related financial disclosuresgreenwashingBusiness risks

    TRENDING NOW

    Justin Quek, CEO of OrangeTee and Deputy Group CEO of Realion Group (right), with Dr Tan Tee Khoon, head of KF Property Network.

    Knight Frank winds down real estate agency unit, agents to move to OrangeTee & Tie

    Despite its abundant gold reserves, Laos captures only a fraction of its value due to the absence of a domestic bullion ecosystem.

    Laos wants more control of its gold – by building the bullion market it never had

    Keppel says the divestment of six oil rigs will raise the company’s funds under management by around S$3.9 billion.

    Keppel to divest six oil rigs through new private fund for S$1.2 billion

    Keppel intends to monetise up to 10 oil rigs through a new private fund, starting with the divestment of six operational rigs for around S$1.2 billion.

    Stocks to watch: Keppel, FCT, Clas, KIT, ESR-Reit, Kore US Reit, Ever Glory, UIB Reit

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More