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What is Greenwashing? Greenwashing refers to the practice of making false or exaggerated claims about the environmental benefits of a product, service, or company in order to appeal to environmentally conscious consumers. It can mislead investors, customers, and other stakeholders and harm a company’s reputation.

Greenwashing can also lead to legal action, particularly if it violates consumer protection or securities laws.

How to avoid Greenwashing

To avoid unintentional greenwashing, it is important that organisations verify the information and claims being made.

Issuers of financial products and consumer goods have a responsibility to conduct their own due diligence and ensure that any claims related to sustainability and ESG are accurate and transparent. This may involve reviewing a range of documents, such as sustainability reports, third-party certifications, and company disclosures, and conducting independent research and analysis.

Getting the right advice

The Seven Advisory team can provide valuable expertise and guidance to organisations to identify key risks and opportunities related to ESG factors, including on how to avoid greenwashing. We also evaluate company disclosures and sustainability reports, and provide recommendations for integrating ESG considerations into decisions and strategies and verifying claims.

Seven works with organisations in consumer goods and in financial product issuance to:

  • Check current claims and offer assistance to assure they are accurate 
  • Implementation of ESG screening claims 
  • Governance frameworks for Board and Management oversight and understanding
  • Risk analysis and gap identification
  • Breach notifications and advice with our legal partner
  • Independent verification and integrated legal advice through our legal partner

Get in touch today

Corporate Sustainability

Seven Advisory provides unique ESG advisory services to companies, investors and entrepreneurs developing their social licence to deliver long-term value.

— Seven Advisory can advise you or your organisation on how to avoid greenwashing.