Greenwashing – A Valuable Insight Into Consumer Understanding

Over the last month we have seen a continued focus upon those making misleading environmental claims, an act known as greenwashing.

Key developments have been:

• The ASA banning two adverts run by HSBC for misleading consumers by not mentioning that HSBC also finances businesses which significantly contribute to greenhouse gas emissions
• The three European Supervisory Authorities publishing a call for evidence on better understanding greenwashing
• the Financial Conduct Authority proposing a package of new measures including investment product sustainability labels and restrictions on how terms like 'ESG', 'green' or 'sustainable' can be used.
• An ASA ruling banning tweets from an artificial grass supplier which referred to its product as recyclable when no such option was available at the time of the claim