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July 17, 2024
Cadwalader partner Duncan Grieve spoke with Lexology PRO about how companies, in their pledges to fight climate change, may become increasingly exposed to allegations of misleading customers, shareholders or regulators, published today.
As ESG initiatives continue to face scrutiny, some companies have appeared to waver or publicly change their position on the issue. Duncan shared with Lexology PRO that the current response to corporate environmental statements has led some companies to change their reporting about climate-related topics.
“’Greenhushing’ is unlikely to be a viable strategy in addressing greenwashing risk, even in the medium term,” he said, in part because climate disclosures are “increasingly being mandated by regulatory authorities,” and key stakeholders, including investors and consumers, “are seeking greater levels of transparency on corporate sustainability efforts.”
In addition, “NGOs are closely monitoring corporate environmental initiatives and using strategic litigation to compel more ambitious targets and disclosure,” he said. “Companies operating in such a complex and rapidly-evolving landscape are finding it difficult to strike a balance.”
Read the article here. (subscription required)
