Introduction
Environmental, Social and Governance (“ESG”) considerations have increasingly become an important component of corporate decision-making, investor assessments and brand positioning in India. As businesses seek to demonstrate their environmental credentials, terms such as “green”, “eco-friendly”, “sustainable”, “carbon neutral” and “environmentally friendly” are increasingly used in advertising, product packaging, corporate communications and sustainability disclosures.
The growing commercial value attached to environmental claims has, however, also increased the risk of greenwashing i.e. the practice of making misleading, deceptive, exaggerated or inadequately substantiated claims regarding the environmental benefits of a product, service or business.