ESG-related litigation has surged. Over 2,300 climate cases have been filed globally, and the targets are expanding beyond fossil fuel companies to include financial institutions, consumer goods companies, and even governments. Greenwashing claims are the fastest-growing category.
Courts and regulators are scrutinising sustainability claims with increasing rigour. The EU’s Green Claims Directive, the UK Advertising Standards Authority, and the Australian ACCC have all taken action against misleading environmental marketing. “Carbon neutral,” “sustainable,” and “eco-friendly” claims now require substantiation.
For companies, the mitigation strategy is straightforward: make only claims you can verify, disclose the methodology behind your targets, and obtain independent assurance for material environmental data. Avoid vague, aspirational language without supporting evidence.
RSustain helps clients review their sustainability communications for litigation risk. This includes: verifying the accuracy of published GHG data, stress-testing net zero pathway assumptions, and ensuring that marketing claims are consistent with technical disclosures.
The standard of corporate sustainability communication is rising. Companies that maintain rigorous evidence bases and seek third-party verification will be protected; those that rely on unsubstantiated claims will be exposed.