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September 6, 2022

A new arena for litigation: greenwashing allegations against competitors

ESG disclosure requirements under European legislation may have the unintended consequence of companies contesting competitors’ sustainability claims in court.

As the EU’s Corporate Sustainability Reporting Directive and Sustainable Finance Disclosure Regulation and the US Securities and Exchange Commission’s proposed ESG disclosure rules ramp up scrutiny on companies’ ESG track records, European lawyers are predicting a new corporate battlefield. They foresee companies increasingly suing each other for greenwashing on the grounds that this would equate to unfair competition. 

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