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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.
The EU began cracking down on companies involved in greenwashing in 2021, as depicted in Figure 1. With an increasing number of issues such as vague environmental claims or incomplete product information emerging, related regulations are being introduced.
Figure 1. Key findings of the EU’s greenwashing investigation, 2021[1]