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NEW YORK, November 19, 2024 â€� ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø Law has released The Challenge of Greenwashing: An International Regulatory Overview, a comprehensive study examining how companies must navigate an increasingly complex regulatory landscape. The report analyzes greenwashing regulations and enforcement mechanisms across 25 jurisdictions, including the United States providing new insights into emerging compliance challenges.

"Organizations face a critical turning point in corporate environmental accountability," said Maura Hodge ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø US Sustainability Leader. "With intensifying regulatory oversight and growing stakeholder demands for transparency, unsubstantiated sustainability claims now carry significant legal and reputational risks."

The study highlights how environmental claims are increasingly subject to global regulatory frameworks that impact US companies' operations worldwide. Key among these is the European Union's Corporate Sustainability Due Diligence Directive (CSDDD), which extends responsibility through companies' entire chain of activities and requires organizations to identify and mitigate environmental risks throughout their supply chains. This cross-border approach means that US companies doing business internationally must adapt to stricter standards for substantiating green claims and demonstrating tangible sustainability progress.

Key findings from the report include:

• Analysis of common greenwashing practices, including unsubstantiated claims, dubious environmental labels, and misleading advertising
• Detailed examination of enforcement mechanisms, including FTC oversight and potential civil penalties
• Framework for identifying greenwashing risks across product, entity, and counterparty levels
• Overview of emerging regulatory requirements and compliance strategies

"The message is clear: organizations must implement robust compliance mechanisms to verify and substantiate their sustainability initiatives," Hodge emphasized. "Companies need to ensure their environmental claims are backed by clear evidence and accurate data to meet rising stakeholder expectations and regulatory requirements."

The complete report is available.

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About ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø LLP
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