Greenwashing, a bewildering array of sustainability performance metrics, uncorrelated ESG ratings, and delivering on Scope 3 emissions are among the many hurdles on the path towards a low-carbon future. Here, three experts discuss the myriad challenges facing corporates, and highlight the rethinking and compromise that may yet be necessary to address them effectively.
With concerns over greenwashing continuing to mount there are signs that regulators, especially in the US and Europe, are finally beginning to crack down on organisations that make misleading claims about their environmental credentials.
In the UK, for instance, the government is pushing through new legislation that has greenwashers very much in its sights. Under the proposals, expected to become law in the second half of 2024, large businesses face the threat of civil penalties of up to 10% of their global turnover for making false environmental claims.
The UK’s Competition and Markets Authority (CMA), which would be given new powers under the legislation, already has a laser focus on the fast-moving consumer goods (FMCG) sector. The CMA is concerned about the accuracy of green claims made about household essentials such as food, drink, and toiletries and wants to ensure shoppers are not being misled. As one of the largest goods sectors in the UK, worth over £100bn annually, the impact of any large-scale alleged greenwashing in FMCG products could be far reaching, impacting many other sectors.