Greenwashing – a Challenge to Achieving Sustainability!
What are the main risks of greenwashing, how do we analyze them to mitigate the potential risks, and what regulatory requirements are ahead of us?
The practice of greenwashing risk has become a growing issue in recent years since the European Union started publishing a series of legal acts covering greenwashing. From that moment on, greenwashing ceased to be solely a reputational aspect and became a regular part of compliance. For many companies, mitigation of greenwashing risk is a real challenge that requires changes on many levels, such as ESG reporting, internal policies, procedures, and marketing communication. Since the issue of greenwashing will be further regulated by European law and supervisory authorities' guidelines, many companies will need to introduce greenwashing risk-mitigating procedures. Today, the AmCham Sustainability Committee organized a Greenwashing - a Challenge to Achieving Sustainability meeting. Our speakers were representatives of PwC, AmCham member company, Łukasz Łyczko, Counsel, and Zuzanna Machniak, LL.M., and we discussed different types of greenwashing and key regulations aimed at counteracting the potential risks. As there is no single document summarizing all the requirements, one challenge could be the necessity of referring to different rules. This lack of clarity or inconsistency in some regulations could be a real challenge for business. What could help is appointing a person responsible for ESG in a company, developing a long-term strategy, and implementing ESG aspects into internal policies and procedures. It seems that marketing communication related to ESG will need to be well thought out so as not to be classified as greenwashing practices.
Thank you to our speakers and Mariusz Wawer for choosing the topic and moderating the discussion.