GREEN WASHING AND HEFTY FINE PAID BY MNCs AROUND. THE WORLD WHAT IS GREEN WASHING ?

 

GREEN WASHING AND HEFTY FINE PAID

 BY MNCs AROUND THE WORLD

WHAT IS GREEN WASHING ?

Greenwashing is the practice of making false or misleading claims about a product, service, or company’s environmental impact.

Greenwashing can take many forms, including:

Misleading labels: Using labels like “green” or “eco-friendly” without clear definitions

Vague claims: Making vague or non-specific statements about a company’s operations

Minor improvements: Claiming that a small improvement has a big impact

Deceptive packaging: Using deceptive packaging, such as labelling a plastic package as recyclable when it’s not

Efficiency claims: Claiming to be more energy efficient without providing evidence

GREEN WASHING LEGISLATIONS AROUND THE WORLD

Authorities around the world are introducing legislation and penalties to combat the threat of greenwashing incidents. Most recently, the European Union kicked off 2024 by adopting a new law — the Greenwashing Directive — to stop greenwashing practices.

This means businesses that greenwash, or breach sustainability laws, risk being slapped with fines worth millions of dollars.

GREENWASHING LEGISLATION IN INDIA

The Central Consumer Protection Authority (CCPA) under the has issued The Guidelines for Prevention and Regulation of Greenwashing and Misleading Environmental Claims, 2024 (the Guidelines). They aim to enhance consumer trust and encourage sustainable business practices by curbing false claims or exaggerations of environmental benefits of products or services. The guidelines are in furtherance to The Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.

APPLICABILITY OF GREENWASHING DIRECTIVES IN INDIA

Applicability of the Guidelines

• The Guidelines apply to all environmental claims made by manufacturers, service providers, or advertisers, and extend to advertising agencies and endorsers involved in promoting such products or services.
• The Guidelines strictly prohibit engaging in greenwashing and misleading environmental claims.
• 

Prevention and Regulation of Greenwashing and Misleading Environmental Claims, 2024 

COCA-COLA, DANONE AND NESTLE MAY BE IN TROUBLE DUE TO GREENWASHING ALLEGATIONS

Coca-Cola, Danone and Nestle have been accused of making misleading claims about their plastic water bottles being "100% recycled". A consumer body and two environmental groups have issued a legal complaint to the European Commission over the alleged greenwashing.

MY VIEW

Indian manufacturers, service providers, or advertisers, and advertising agencies should adopt The Guidelines for Prevention and Regulation of Greenwashing and Misleading Environmental Claims, 2024 (the Guidelines)issued by The Central Consumer Protection Authority (CCPA) to prevent hefty fines that may be levied by the above CCPA in India as a part of compliance programme in their company.

Compliance officer or Company Secretary should take care that Prevention and Regulation of Greenwashing and Misleading Environmental Claims, 2024 directives is being complied in their company to avoid hefty fines later.

FCS R V Seckar

79047 19295  rvsekar2007@gmail.com