(Photo: iStock)
Greenwashing has been frequently reported in recent years, attracting the attention of governments worldwide. In response, the European Parliament passed the Empowering Consumers for the Green Transition Directive in January, prohibiting companies from using general environmental statements such as "net zero" and "carbon neutral." Meanwhile, the U.S.’ Green Guides has entered the revision stage to align with latest environmental standards. As international regulations against greenwashing become increasingly refined, companies should not only focus on reducing emissions but also identify the regulatory risks involved to maximize their competitiveness.