Navigating environmental advertising
Despite being attributed to Kermit the frog, the saying ‘it’s not easy being green’ also reflects the views of many organisations trying to navigate the complex and diverging legal and regulatory risks of making green claims.
The perils of greenwashing – purposeful or inadvertent – can carry significant reputational, regulatory and litigation risks for organisations. To avoid these pitfalls, some organisations have taken to ‘greenhushing’ – underreporting or deliberately withholding information about their environment impacts, efforts and achievements (or lack thereof).
With continued growth in climate change litigation, director liability of foreseeable risks and climate claims -- and the fear of backlash if they fail to meet targets -- greenhushing is on the rise but isn’t without its risks.
Mandatory disclosures alongside increasing calls for transparency and heightened scrutiny from stakeholders continues to put pressure on boards. For investors and other stakeholders seeking environmentally friendly goods, services and investment opportunities, there is the potential for organisations to miss out.
Silence is not an answer. New Zealand directors need to ensure that any environmental claims – product labels, branding, advertisements, marketing, website, communications – are credible, clear, unambiguous, verifiable, ethical and remain up to date.
Navigating environmental advertising across multiple jurisdictions creates a high risk, complex playing field for boards with regulations and legislation varying greatly between jurisdictions.
DLA Piper have created a guide to navigating Environmental Advertising Claims that provides an overview of the laws governing environmental advertising in 23 major jurisdictions including New Zealand, Australia, the UK, America and China. It includes guidance on product advertising, brand claims, use of third-party certifications, zero emissions claims, recyclable claims as well as legal risks and enforcement.
The guide is aimed to help organisations:
- Identify key laws and regulations applicable to environmental advertising claims
- Track upcoming changes to applicable laws and regulations
- Understand the key requirements of each country’s laws on green advertising claims
- Incorporate regulator guidance and local best practice
- Examine examples of admissible and inadmissible claims
- Review the risks of non-compliance including what penalties exist and who can file complaints or claims
