LAUREN FARRELL | Associate, Capco
In recent years, due to increasing awareness of the risks – and opportunities – provided by climate change, products marketed based on their strong environmental, social, and governance (ESG) credentials have exploded. In conjunction with this “gold rush” of new green products is the potential to misrepresent their true underlying nature; subsequently such claims made to consumers are not always credibly evidenced, which could lead to long-term legal ramifications.
This paper introduces climate conduct and highlights ways in which products can be mis-sold through marketing. It further outlines the actions that regulatory bodies are taking to mitigate this, including the implementation of legislation and guiding principles for firms. Some risks and pitfalls for firms treading this “green-line” are given using case study evidence. Guidance is also provided for how firms should operate moving forward in this environment.